Kelso Technologies Inc.
TSX VENTURE : KLS

Kelso Technologies Inc.

March 29, 2011 15:33 ET

Kelso Technologies Inc.: Manway Assembly and Distribution Facility Planned for Bonham, Texas

VANCOUVER, BRITISH COLUMBIA--(Marketwire - March 29, 2011) - Kelso Technologies Inc. (TSX VENTURE:KLS) (the "Company") -

James R. Bond, CEO and President of the Company reports that the Company has formulated its assembly and distribution plans for its new Manway Securement System ("MSS") based on its market research and assessment of inputs from various key manufacturers, retrofit and repair shops servicing the railroad tank car, highway truck trailer and ISO tank industries.

The Company intends to establish a 40,000 to 50,000 square foot assembly facility in Bonham, Texas to produce the patented MSS units. The production target capacity will be 12,000 MSS units per year with a selling price range of approximately US$2,000 for truck MSS units that are lighter and cheaper to produce and up to US$6,500 per unit for rail tank cars based on custom design and high end material specifications.

The new Bonham facility will also include the capacity for assembly, test and certification of up to 4,000 valves per year. The Company wants to ensure that production capacity for both products can be scaled upward when necessary with limited additional investment. 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, "Our MSS is a breakout product opportunity and a key milestone in the business development of Kelso Technologies. Our patented MSS offers many new, innovative and unique advantages compared to current systems which have not been improved in decades. It addresses modern environmental sensitivities, human error, safety, product performance and cost benefits of ownership. We are currently pursuing some significant product marketing opportunities that are under development and we are hopeful of our participation in these projects."

The Company will concentrate all of its resources on the productive supply chain, assembly and distribution lines required to produce valve and MSS units in adequate numbers to satisfy customer demand. To do this, management has suspended its research and development of anti-corrosion coatings for the time being.

About Kelso Technologies

Kelso designs, engineers; produces; markets and distributes innovative proprietary products including constant force pressure relief valves and a new unique MSS 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 MSS 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 intend to establish a 40,000 to 50,000 square foot assembly facility in Bonham, Texas to produce the MSS units; that the production target capacity will be 12,000 MSS units per year with a selling price range of approximately US$2,000 for truck MSS units and up to US$6,500 per unit for rail tank cars; that production capacity for both products can be scaled upward; that the facility will include the capacity for assembly, test and certification of up to 4,000 valves per year; we will participate in significant bids to supply product, 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 able to be developed as expected because of finance, zoning, employment or other issues that may arise. 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. Competitors may develop better or cheaper alternatives to our products. 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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