Kelso Technologies Inc.: New Subsidiary for Trucking and Appointment of President

VANCOUVER, BRITISH COLUMBIA and LISLE, ILLINOIS--(Marketwire - June 21, 2012) - Kelso (TSX VENTURE:KLS)(OTCQX:KEOSF) reports that it has incorporated a wholly owned subsidiary company named Kelso Innovative Solutions Inc.("KIS") in the State of Nevada. The new subsidiary will focus on engineering industrial designs and distribution plans for our patented Kelso Klincher™ (KKS) manway securement system for applications in the roadway trucking and trailer market. KIS will be based in the Houston, Texas area.

New President

We are pleased to announce that KIS will be run by Mike Girard who will act as the President. Mike has over 30 years of valuable business development experience and key business relationships in the over-highway truck and trailer market. He is very well known and respected in the trucking industry. Mike has been a key member of Girard Equipment Inc., a respected supplier of equipment to the trucking industry, for the past 30 years most recently as VP Sales, Southern Region. He will report to Neil Gambow who will act as CEO for KIS.

Outlook

The establishment of KIS is another strategic step in the growth model of Kelso. We have built a strong engineering and business position in railroad equipment from which to create, develop and distribute innovative high performance products that provide solutions for trucking customers in terms of improved performance, safety, reliability, cost benefits and longevity.

Mr. Girard will focus on the relationships required to execute commercial business plans for multi-million dollar sales of our unique KKS products to customers inside the trucking industry. This business direction has been fueled by several key trucking customers that have expressed keen interest to assess and develop the value proposition that our KKS offers in roadway applications. Our goal is create a "first to market" high performance KKS product strategy that will deliver economic and qualitative benefits to all stakeholders in the HAZMAT segment of the trucking industry.

We have been working on initial industrial designs, adoption issues and delivery schedules for 2013 and 2014 with key truck tank car builders, owners and shippers who transport hazardous commodities and non-hazardous commodities via road. The KIS subsidiary formalizes our entry into the trucking industry and allows us to pursue these multi- million dollar markets without affecting our railroad business.

Our ultimate goal is to have our trucking version of the KKS become a "gold standard" product on most HAZMAT and non-hazardous applications in trucking transport. We are confident that the trucking market can add multi-million dollar business to the overall benefit 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 that multi million dollar revenue opportunities exist and can be exploited in the trucking industry; that Kelso can design and deliver reliable "best available technology" KKS products for the trucking industry with proven economic and qualitative advantages over our competition; that from the commercial sales of our KKS products in the trucking industry Kelso can add successful multi-million dollar business and that we can make deliveries in 2013. 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.