Kelso Technologies Inc.

Kelso Technologies Inc.

March 10, 2005 09:25 ET

Kelso Technologies Inc.: Union Provides Heads up to Rail Industry


NEWS RELEASE TRANSMITTED BY CCNMatthews

FOR: KELSO TECHNOLOGIES INC.

TSX VENTURE SYMBOL: KLS

MARCH 10, 2005 - 09:25 ET

Kelso Technologies Inc.: Union Provides Heads up to
Rail Industry

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - March 10, 2005) - Kelso
Technologies Inc. (TSX VENTURE:KLS) is pleased to report that it is
continuing its concerted efforts leading to the start of manufacturing
of its JS75 SRV pressure relief valves by McKenzie Valve & Machining.

The Company has recently been advised by McKenzie Valve that the
required sample castings from China should arrive at its Plant in
Tennessee about March 21, 2005. With the sample castings, specifications
can be confirmed and the actual production castings can be manufactured.
McKenzie Valve can then further the necessary retooling to accommodate
manufacturing of Kelso's JS75 SRVs. Retooling is expected to take until
late June to complete, at which time production can begin.

Kelso is also working diligently in its efforts to complete the
necessary financing to deploy its marketing and sales plans. As part of
its financing strategy, Kelso announced on March 2nd that it is doing a
Private Placement of up to $500,000. Kelso is today very pleased to say
that, within the first week of the announcement, it has received
commitments of nearly one half of its goal of $500,000. Kelso is very
encouraged since it proves that the public is beginning to realize the
significance of the Agreement between Union Tank Car and Kelso and what
it will mean to Kelso shareholders over the coming months and years.
Kelso is pleased that potential investors are calling on a daily basis
to participate in this current private placement.

Kelso Management was extremely pleased recently when it received copies
of the monthly UTLX Calendar created by Union Tank Car Company. A
different Calendar is mailed each month to a broad list of nearly 2,000
recipients which include Union Tank Car customers and people in the rail
and rail shipping industries. The message of the March Calendar was
developed exclusively by Union.

Following is the text of that Calendar:

Early in the last Century, when U.T.L. reporting marks were stenciled on
almost every tank car in North America, Union Tank Car Company pioneered
forge-welded steel tank cars. That great idea quickly won acceptance in
the marketplace and eventually made our entire fleet of riveted tank
cars obsolete. The same thing happened again after World War II, when
UTLX engineers introduced the "modern" tank car. Once we had proved to
the AAR that fusion welding was the best way to build tanks, and that
expansion domes, running boards, and under frames were unneeded, our
forge-welded fleet was almost instantly outdated.

"In the near term, innovation can be an expensive proposition," said Jim
Doty, Vice President of Marketing. "But that reality has not stopped
UTLX from continually striving to improve our product. We take a long
term perspective and are always working on that next revolutionary idea
that will make railroad tank cars even safer. That's why it was exciting
to enter into an agreement with Kelso Technologies and McKenzie Valve &
Machining to manufacture and market the JS SRV low pressure relief
valve. We think that this design is the 'better mousetrap' that will
prove to be the next big tank car improvement."

"The patented, externally sprung valve not only looks different, it is
lighter and easier to maintain than traditional helical compression
spring valves," said Rich Sobilo, Chief Product Engineer for UTLX. "And,
importantly, the springs and stem are outside of the product space,
which makes this valve a good choice for UTLX customers who ship
products that require protective interior tank car coatings."

Richard Sumpter, Plant Manager for UTLX affiliate, McKenzie Valve
continued, "The simplicity of the valve provides other advantages over
traditional safety valves. For example, it is easy to assemble and
adjust even when it is mounted on a car. This is the design concept of
the future, and we are currently working with Kelso to develop valves
with other pressure settings and discharge rates. When this product line
is complete, it may very well be the new industry standard."

"The message contained in the March Calendar was developed by Union Tank
Car as a means to communicate its new relationship with Kelso, to its
customer base. It highlights the key reasons why Union Tank Car and
McKenzie Valve entered into the agreement with Kelso and how they see
the revolutionary JS SRV...as a truly innovative technology for the rail
industry and a major step forward in safety," stated Stephen L.
Grossman, President and CEO of Kelso.

John L. Carswell, Director


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Contact Information

  • FOR FURTHER INFORMATION PLEASE CONTACT:
    Kelso Technologies Inc.
    John L. Carswell, Director
    Investor Relations
    (604) 878-7600 ext. 4 or Toll Free: 1-866-535-7685
    (604) 899-1144 (FAX)
    invest@kelsotech.com
    www.kelsotech.com
    The TSX Venture Exchange has not reviewed and does not accept
    responsibility for the adequacy or accuracy of this release.