Kelso Technologies Inc.
TSX VENTURE : KLS

Kelso Technologies Inc.

February 28, 2011 14:19 ET

Kelso Technologies Inc.: Manway Goes to Houston, Texas

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Feb. 28, 2011) - Mr. James R. Bond, CEO and President of the Company (TSX VENTURE:KLS) is pleased to report that the Company has successfully presented its patented Manway Securement System ("MSS") to key representatives of the railroad industry, and the United States Federal Rail Administration ("FRA") in Houston, Texas during the week of February 17, 2011.

In attendance were regulators, chemical shippers, tank car fleet managers, first responders (firefighters), repair/retrofit shop personnel, third party fleet managers and hazardous material loading/unloading personnel. Those involved universally supported the product design and application as a very significant improvement in tank car MSS technology and urged Kelso to press forward with its introduction and full scale distribution into the railroad transportation market.

Mr. Neil Gambow, CEO and President of the Company's wholly owned subsidiary Kelso Technologies (USA) Inc. who leads the MSS initiative reports that, "Many industry people have now seen our new patented MSS and are genuinely excited about the potential to simplify the complex securement procedures currently utilized; substantially reduce non-accidental releases of hazardous materials into the environment and to significantly reduce or eliminate very expensive regulatory penalties and fines. We have obviously introduced a product that meets the intent of the regulatory agencies for better manway securement technology and this represents a major business opportunity to grow Kelso's future business."

Kelso has received the necessary AAR Application Number to permit installation of the MSS on railroad tank cars currently in service. In addition several large chemical customers have agreed to install an aggregate of seven MSS units for a five to six month service trial evaluation on tank cars in service.

As an integral part of our marketing initiatives the MSS will next be presented to the Annual Meeting of the Chlorine Institute in March 2011; the meeting of the AAR Tank Car Committee in April 2011; and the Bureau of Explosives exposition in May 2011. The MSS is expected to commence its commercial sales launch in the fall of 2011 after completion of the assessment of performance data provided by the tested MSS units.

About Kelso Technologies

Kelso engineers; manufactures; markets and distributes an innovative proprietary Manway Securement System and a variety of patented pressure relief valve products. In the development stages are proprietary nanocomposite anti-corrosion coatings. All products are designed to provide safer containment systems 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.

The Company anticipates that with the economic recovery in North America, the more stringent enforcement of US and Canadian environmental regulations for shippers of chemical commodities and the adverse effects of wear and tear on existing railroad fleets that the railroad industry will rebound significantly. Management is confident that its reorganization in 2010 and new capital resources will allow Kelso to successfully pursue a market made up of over 700 new tank-car builders, leasing companies, major chemical shippers, repair shops and retrofitters allowing the Company to grow its 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 are expecting to install another seven MSS units for a five to six month service trial evaluation on tank cars in service; that the MSS is expected to commence its commercial sales launch in the fall of 2011; that a market of over 700 potential customers exists, that the railroad industry will rebound significantly and that we can grow our man-way securement system and valve business. 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 any additional capital needs that may arise; we may not have 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.

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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