Kelso Technologies Inc.
TSX VENTURE : KLS
OTCQX : KEOSF

Kelso Technologies Inc.

February 09, 2012 09:00 ET

Kelso Technologies Inc.: New EPRV Orders Exceed US$1,000,000

VANCOUVER, BRITISH COLUMBIA and LISLE, ILLINOIS--(Marketwire - Feb. 9, 2012) - Kelso Technologies Inc. (TSX VENTURE:KLS)(OTCQX:KEOSF) reports that it has recently received additional purchase orders for its external pressure relief valves ("EPRV") in excess of US$ 1,000,000. These new orders bring our EPRV product business for 2012 to exceed US$ 4,000,000.

Key to this business activity is that one of the four major tank car manufacturers ("OEMs") has now designated Kelso's EPRV as recommended standard equipment on a series of their railroad tank cars used primarily for ethanol and crude oil transport. This initial OEM order of approximately US$900,000 begins weekly delivery in April 2012.

Numerous customers that transport hazardous commodities such as crude oil, ethanol, petrochemicals and other toxic chemicals and OEMs are conducting engineering assessments of our EPRV and Kelso Klincher™ ("KKS") manway products. In the railroad industry there is now clear understanding and recognition of the innovative performance and safety dynamics that our products offer. Kelso continues to work on product adoption issues, production and installation schedules for 2012 and 2013 with OEMs in order to meet customer requirements. Additional adoption decisions in favor of our products by OEMs for new tank car builds are expected in the near future.

Neil Gambow, President and CEO of Kelso Technologies (USA), comments that, "It is now apparent that the strengths of our EPRV products are being recognized by the railroad OEMs and HAZMAT stakeholders. The momentum of adoption decisions further validates the industry value of our EPRV as "best available technology" recommended for adoption on railroad tank cars. We are very pleased by the willingness the OEM to be the first to standardize our EPRV technologies in their new tank car business."

About Kelso Technologies

Kelso is an emerging railroad equipment supplier that produces and distributes innovative technologies for the safe containment of all liquid materials including hazardous materials ("HAZMAT") during transport. All EPRV and KKS products are patented designs that reduce the risk of environmental harm due to non-accidental release events in the transport of HAZMAT and improve employee safety.

Our new KKS provides a revolutionary change in the handling dynamics and infrastructure of the HAZMAT industry. It is a major industry innovation and addresses stringent environmental sensitivities and worker safety. Our KKS program is being well supported by regulators, railroads, customers, industry workers and emergency response organizations.

Our main challenge to market penetration is that the railroad industry is very slow to design or adopt new technologies. In many cases designs have not changed in decades even though environmental and engineering problems challenge the industry. This circumstance provides Kelso with a strong business opportunity to deliver technology solutions that improve performance, provide cost benefits and improve longevity. Our technology goal is to have our EPRV and KKS become the "best available technology" standard on all applications that are specified by rail tank car manufacturers, retrofitters and repair shops. The focus is to build a successful multi-million business on behalf of the shareholders of Kelso Technologies.

For a more complete business and financial profile of the Company, please 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 customers are conducting engineering assessments of our products; that in the railroad industry there is now clear understanding and recognition of the innovative performance and safety dynamics that our products offer; that that we are now working on product specifications and adoption schedules for 2012 and 2013 with manufacturers of railroad tank cars; that additional adoption decisions in favor of our products for new tank car builds are expected; and that Kelso can build a successful multi-million business on behalf of the shareholders of Kelso Technologies. 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; product development may face unexpected delays; 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 construction or other plans for plants run into permit, labor or other problems. 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 the 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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