SOURCE: O2Diesel Corporation

March 29, 2006 02:00 ET

O2Diesel Announces the Addition of E3 Biofuels, LLC as a CityHome™ Sponsor and the One Year Anniversary of StarTran Transit using O2Diesel™

NEWARK, DE -- (MARKET WIRE) -- March 29, 2006 -- CityHome™ is a major initiative designed to improve air quality as well as the quality of life for transit and school systems and their employees, riders, and area residents by using clean burning O2Diesel™ at no additional cost to the fleet. CityHome™ helps transit and school bus fleets to reduce emissions and dependence on imported oil by supporting the use of O2Diesel™, an ethanol blended E-Diesel fuel; additional fuel costs are subsidized by private and corporate sponsorship.

StarTran Transit of Lincoln, NE was the first fleet to adopt CityHome™ and has now successfully completed one year of using O2Diesel™ fuel. By burning 02Diesel™ fuel during this past year, StarTran has reduced the petroleum portion of the fuel utilized by 8%, and it is estimated that they have reduced their diesel emissions by four tons of toxic diesel emissions, significantly improving the air quality and the quality of life for the community. CityHome™ sponsors for StarTran in 2005 have included Performance Automotive, Nebraska Ethanol Board, Nebraska Corn Board, Nebraska Corn Growers Association and Clear Channel Radio.

O2Diesel celebrates this anniversary by introducing the newest sponsor, E3 Biofuels. E3 Biofuels has developed E3 BioSolution, which is a totally integrated technology system (a corn field, feedlot, ethanol plant, and waste digester) for producing corn, ethanol, milk, cheese and beef with little to no fossil fuel consumption. The first system is located in Mead, NE.

"Protecting a threatened environment, reducing our nation's dependence on fossil fuels and ensuring a safe, competitively priced food supply -- are issues that will dominate the economic landscape in the years to come. E3 Biofuels is proud to become a sponsor for CityHome™ in Nebraska and we are looking forward to help CityHome™ meet new E-Diesel challenges in Omaha and Lincoln for transit and school systems," said Dave Hallberg, CEO of E3Biofuels LLC.

"This is an important landmark for O2Diesel and CtyHome™," said Alan Rae, CEO of O2Diesel Corporation. " O2Diesel™ is confirmed as a commercially viable clean burning alternative to regular diesel. With the support of the CityHome™ program it makes cleaner air and a better environment available to all transit and school bus fleets without the concern of finding the budget to meet the inevitable cost of providing these benefits."

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

  • Contact:
    O2Diesel Corporation
    Alan Rae
    +1 (302) 266 6000
    Or
    Alliance Advisors, LLC
    Alan Sheinwald
    +1 (914) 244-0062