SOURCE: O2Diesel Corporation

October 26, 2005 02:00 ET

O2Diesel Adds Second Brazilian Municipality to the List of Fleets Using Its Clean Burning Ethanol Diesel Fuel Blend

NEWARK, DE -- (MARKET WIRE) -- October 26, 2005 -- Today, O2Diesel Corporation (AMEX: OTD) announced that the City of Maringá, State of Paraná, Brazil has joined the Brazilian equivalent to the CityHome™ program, MEU LUGAR™. MEU LUGAR™ is a clean air initiative that helps municipal transit systems significantly reduce diesel emissions by burning O2Diesel™.

The City of Maringá is the first municipality to join MEU LUGAR™, which creates a better quality of life for local residents through cleaner air. The City of Maringá intends to gradually convert all 235 of its diesel-powered buses as well as other diesel equipment used by the municipality for maintenance and garbage collection services to O2Diesel's cleaner burning ethanol-diesel fuel by mid-2006.

The MEU LUGAR™ program was officially launched on October 18 by Silvio Barros, the Mayor of Maringá; Anisio Tormena, the President of ALCOPAR; and Peter Gross, the General Manager of O2Diesel in Brazil. The event generated a great deal of media interest and was covered by several radio and television channels together with journalists from local and regional newspapers.

"By using O2Diesel™ fuel, the City of Maringá will be at the technological forefront of renewable fuel developments and will contribute to a healthier environment for its residents," said Mr. Barros, after fueling the first two buses with O2Diesel™ fuel.

Mr. Tormena pointed out that "O2Diesel™ fuel contains locally produced ethanol, thus strengthening the rural economy and creating jobs in the State of Paraná." ALCOPAR is the association of the sugar cane and ethanol producers of the State of Paraná and has actively supported the implementation of the MEU LUGAR™ program in Maringá.

"O2Diesel is pleased to see that the City of Maringá has chosen to be among the first to use our advanced fuel technology," said Alan Rae, CEO of O2Diesel Corp. "Maringá has a population of 500,000 people and was recently elected Brazil's city with the best quality of life for its residents. Following the City of Rio de Janeiro, which has been successfully running O2Diesel™ fuel in a major pilot project since May 2005, Maringá will be the second Brazilian city to adopt O2Diesel™ fuel, sending a strong message to other municipalities that clean air is becoming an increasingly important issue."

More about O2Diesel: The company and Its Fuel Technology.

O2Diesel Corporation (AMEX: OTD) is a pioneer in the commercial development of a cleaner-burning diesel fuel that provides excellent performance and environmental benefits for centrally fueled fleets and off-road equipment of all kinds. Engineered and designed for universal application, O2Diesel™ is an ethanol-diesel blend treated with the company's proprietary natural oil-derived stabilizing additive 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 and failure to capitalize upon access to new markets. 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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