SOURCE: O2Diesel Corporation

October 06, 2006 10:30 ET

Nevada's Clark County Extends Demonstration of O2Diesel™

NEWARK, DE -- (MARKET WIRE) -- October 6, 2006 -- O2Diesel Corporation (AMEX: OTD), a pioneer in the development of cost-effective, cleaner-burning, diesel fuels for centrally fueled fleets of all types, today announced, that the County of Clark in Nevada has decided to extend the testing and demonstration of O2Diesel™ through the end of this year. Clark County has been running a number of vehicles on clean burning O2Diesel fuel starting in April of 2006. O2Diesel uses 7.7% ethanol and its proprietary additive to oxygenate the diesel fuel and reduce harmful emissions, specifically Particulate Matter, CO and NOx.

David Johnson, Manager of Automotive Services, at Clark County, stated that there is no doubt in his mind, after running emission tests, that O2Diesel does reduce emissions when compared to the biodiesel.

Mr. Johnson stated, "Because Clark County is classified as a non-attainment area and now has a refreshed focus on reducing Green House Gas, continuing this demonstration is the right thing to do."

The testing period has been extended because Clark County wants to explore how the fuel performs in a wider range of temperatures than what could be accomplished in the initial time period. Additionally, this allows the County to better ascertain the compatibility and usability of O2Diesel™ with specific types of fleet equipment.

"Clark County Nevada represents one of the toughest air quality challenges in the Southwest and one of the toughest challenges for any fuel during the summer when pavement temperatures can exceed 130 degrees Fahrenheit," said Alan Rae, CEO of O2Diesel Corporation. "Continuation of the test will allow us to validate O2Diesel™ in a wider range of equipment which represents a number of the vehicles used by the larger potential market in this area."

About O2Diesel: The Company and Its Fuel Technology

O2Diesel Corporation (AMEX: OTD) and its U.S. subsidiary O2Diesel, Inc., is a pioneer in the commercial development of a cleaner-burning diesel fuel alternative that provides exceptional performance and environmental qualities for centrally fueled fleets and off-road equipment of all kinds. Engineered and designed for universal application, O2Diesel™ is an ethanol-diesel blend that substantially reduces harmful emissions without sacrificing power and performance. Extensive independent and government-recognized laboratory and in-use field tests have demonstrated the effectiveness of O2Diesel™ -- the introduction of this cost-effective, cleaner-burning diesel fuel is now underway in the United States and other global markets. For more information please refer to www.o2diesel.com.

Forward-Looking Statements

"Safe Harbor" Statement under the Private Securities Litigation Reform Act of 1995: Statements in this press release regarding O2Diesel Corporation's business which are not historical facts are 'forward-looking statements' that involve risks and uncertainties. Forward-looking statements are subject to a variety of risks and uncertainties which could cause actual events or results to differ from those reflected in the forward-looking statements, including, without limitation, the failure to obtain adequate financing on a timely basis and other risks and uncertainties. Actual results could differ materially from those projected in the forward-looking statements, as a result of either the matters set forth or incorporated in this report generally or certain economic and business factors, some of which may be beyond the control of O2Diesel. These factors include adverse economic conditions, entry of new and stronger competitors, inadequate capital, unexpected costs, failure to gain product approval in the United States or foreign countries for the commercialization and distribution of our products, failure to capitalize upon access to new markets and failure in obtaining the quality and quantity of ethanol necessary to produce our product at competitive price. O2Diesel disclaims any obligation subsequently to revise any forward-looking statements to reflect events or circumstances after the date of such statements or to reflect the occurrence of anticipated or unanticipated events. "O2Diesel" and "CityHome" are trademarks of O2Diesel Corporation.

Contact Information

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    O2Diesel Corporation
    Alan Rae
    +1 (302) 266 6000

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    Mark McPartland
    +1 (910) 221-1827