Kelso Technologies Inc.
TSX VENTURE : KLS

Kelso Technologies Inc.

March 09, 2011 14:09 ET

Kelso Technologies Inc.: Bonham, Texas Assembly Facility Receives AAR Class F Certification

VANCOUVER, BRITISH COLUMBIA--(Marketwire - March 9, 2011) - James R. Bond, CEO and President of the Company (TSX VENTURE:KLS), is pleased to report that the Company has received its Class F certification for its production facilities in Bonham, Texas from the Association of American Railroads (AAR). The certification expires on March 3, 2017. Our AAR Class F Registration covers the manufacture, recondition, repair, retest, or qualified tank car service equipment.

The Bonham facility is dedicated to the assembly, test and certification of up to 4,000 valves per year. Production capacity can be scaled upward when necessary in current facilities with limited additional investment. In addition the Company is currently pursuing the assembly, test and certification of its new manway products in Bonham. The key significance of Bonham is that it is within a 110 mile radius of its largest customers.

Mr. Neil Gambow, CEO and President of the Company's wholly owned subsidiary Kelso Technologies (USA) Inc., comments that, "The AAR certification of our Bonham facility is a key milestone in the business development of Kelso. This registration acknowledges that Kelso has a qualified quality assurance system that meets AAR requirements. This is yet another step in our industry qualifications and credibility. It allows us to pursue both small and large product sales opportunities at all levels of the railroad industry with the approval of the AAR. We are currently pursuing some significant product marketing opportunities that are under development and we are hopeful of our participation in these bids."

About Kelso Technologies

Kelso designs, engineers; produces; markets and distributes innovative proprietary products including constant force pressure relief valves and a new unique manway securement system that are designed to reduce the risk of environmental harm due to non-accidental events in the transportation of hazardous commodities via railroad tank cars in North America. Operations are based in Vancouver, Chicago and Bonham, Texas.

The Company's innovative "best of technology" products and production facilities now meet the demanding design, testing and production standards of the AAR. Kelso is now focused on the full scale commercial marketing and distribution of its proprietary technologies in 2011.

With the economic recovery in North America, the enforcement of US and Canadian environmental regulations for shippers of chemical commodities and the adverse effects of wear and tear on existing railroad fleets management expects that the railroad industry will rebound significantly. Management is confident that its reorganization in 2010 has laid the foundation from which to pursue a market made up of over 700 new tank-car builders, major chemical shippers, repair shops and retrofitters. This will allow the Company to grow its new man-way securement system and pressure relief valve business successfully over the coming years. The Company will update, by way of news releases, progress reports in the future.

For a more complete business and financial profile of the Company, management encourages interested parties to view the Company's website at www.kelsotech.com and public documents posted on www.sedar.com.

On behalf of the Board of Directors

James R. Bond, CEO and President

Legal Notice Regarding Forward Looking Statements: This news release contains "forward-looking statements within the meaning of applicable Canadian securities legislation. Forward-looking statements are indicated expectations or intentions. Forward-looking statements in this news release include that we will participate in significant bids to supply product, that we can increase production capacity, that our products reduce the risk of environmental harm, that we will become a reliable supplier of high quality "best of technology" proprietary products; that we can move to full scale commercial marketing and distribution of our products in 2011; that a market of over 700 potential customers exists, that the railroad industry will rebound significantly and that we can grow our manway securement system and valve business. Actual results could be significantly different than indicated. The Company's products involve detailed proprietary and engineering knowledge and specific customer adoption criteria, hence factors that could cause actual results to be materially different include that we may be unsuccessful in raising sufficient capital to develop, produce and deliver new orders; orders that are placed may be cancelled; product may not perform as well as expected; markets may not develop as quickly as anticipated or at all; or that the productive capacity of Kelso may not be large enough to handle market demand. Further, we are reliant on certain key employees who may leave the Company and we may be unable to protect or defend our intellectual property. Investors are cautioned against placing undue reliance on forward-looking statements. We assume no responsibility to update these forward looking statements except to the extent required by law.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

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