Diversified Industries Ltd.

Diversified Industries Ltd.

February 24, 2005 09:00 ET

Diversified Industries is Turning Field Trials Into Sales for DVS 6000


NEWS RELEASE TRANSMITTED BY CCNMatthews

FOR: DIVERSIFIED INDUSTRIES LTD.

TSX VENTURE SYMBOL: DVS

FEBRUARY 24, 2005 - 09:00 ET

Diversified Industries is Turning Field Trials Into
Sales for DVS 6000

EDMONTON, ALBERTA--(CCNMatthews - Feb. 24, 2005) - Diversified
Industries Ltd. (TSX VENTURE: DVS) is turning field trials for DVS 6000,
its innovative hydrogen sulphide (H2S) scavenger, into sales. The
company recently received its first major commitment from an oil and gas
customer for the exclusive use of DVS 6000 at all of its facilities that
receive sour liquid hydrocarbons. Diversified expects that sales to
current clients who have adopted the use of DVS 6000 for treating sour
liquids will generate over $1 million in revenue over the next 6 to 12
months.

"Sales of DVS 6000 are expected to continue to grow rapidly," says
Pamela Maze, V.P. Sales and Marketing " over the next 6 to 12 months."
"These sales expectations are based on expanding the product's marketing
program, which is currently focused on existing sales accounts and on
the positive results from customer trials when treating sour liquids
like sour water and sour liquid hydrocarbons."

The January / February 2005 issue of NICKLE'S New Technology Magazine
features an article focused on confirming the safety benefits and the
effectiveness of using DVS 6000. This independent article highlights
several positive comments and quotes from existing clients in the oil
and gas industry using DVS 6000 (the article can be viewed online at:
www.ntm.nickles.com ).

Diversified continues to work with a variety of customers in the oil and
gas industry in Canada and the United States, demonstrating the use of
DVS 6000 which it markets as the safest and easiest-to-use H2S scavenger
on the market.

Diversified has proven through numerous trials over the last two years
that DVS 6000 effectively neutralizes H2S and mercaptans in a variety of
applications, including storage tanks, pipelines, gas plants,
refineries, tank-mounted and truck-mounted scrubbers, and other oil and
gas facilities and operations involving the handling of hydrogen
sulphide contaminated liquids and gases.

DVS 6000 is Diversified's lead product and is one of several proprietary
technologies being developed and/or commercialized by the company, which
is focusing on product applications for the oil and gas industry.
Diversified is now headquartered in Edmonton, Alberta, where it recently
established its product development and marketing facility.

Statements made in this news release that relate to future plans,
expectations, events or performances are forward-looking statements.
Such statements involve risks and uncertainties and are based on current
expectations. Consequently, actual results could differ materially from
the expectations expressed in these forward-looking statements.

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Contact Information

  • FOR FURTHER INFORMATION PLEASE CONTACT:
    Diversified Industries Ltd.
    Stephen L. Davis
    President & CEO
    (250) 655-9209
    info@dvsind.com
    www.dvsind.com
    or
    Arlitt Financial Corporation
    John L. Arlitt
    (604) 632-3880 or Toll Free: 1-877-448-8181
    afcorp@axionet.com
    The TSX Venture Exchange does not accept responsibility for the adequacy
    or accuracy of this release.