SOURCE: O2Diesel Corporation

September 06, 2005 02:00 ET

O2Diesel Announces Full Implementation at Johnson County Transit, Kansas for Its Cleaner Burning Ethanol-Diesel Fuel Blend Through the CityHome™ Program

NEWARK, DE -- (MARKET WIRE) -- September 6, 2005 -- O2Diesel Corporation (AMEX: OTD) today announced that Johnson County Transit (JCT), the public transit operation serving Johnson County, Kansas, will convert the balance of their fleet to O2Diesel™ fuel.

In March 2005, JCT initiated a two phase implementation of O2Diesel™, with the first phase being an assessment of the emissions reductions and an operability evaluation on 15% of their 75 bus fleet, and the second phase being the fleet-wide conversion.

For Phase I, Dr. Dennis Lane, the N. T. Veatch Distinguished Professor of Environmental Engineering, and his team at the University of Kansas independently estimated that by switching JCT vehicles to O2Diesel™ for their remaining service life would reduce air polluting emissions in the service area by 40 tons. In addition, the K.U. study team measured exhaust improvements in black smoke and opacity as high as 70%.

Chuck Ferguson, JCT's Deputy Transportation Director, said, "These emission improvements, along with the fact that there were no changes in vehicle operation, convinced us to make the conversion to O2Diesel™ fuel. The CityHome™ program allows JCT to burn O2Diesel™ and achieve cleaner air at no additional cost."

Johnson County, part of metropolitan Kansas City, is home to more than 500,000 residents. Johnson County Transit works closely with the Kansas City Area Transportation Authority, the bi-state transit authority vested with the ability to provide transit services in the seven county, two state metro area. Johnson County Transit is the latest Midwestern transit operator to begin converting its bus fleet to O2Diesel™, made possible through our CityHome™ program which is a clean air partnership between O2Diesel, corporate sponsors and local transit authorities. Corporate sponsors make it possible for JCT to offset the added cost of O2Diesel's ethanol-diesel fuel blend. CityHome was launched nationally on March 10 with the StarTran system in Lincoln, NE, converting their 67 buses to O2Diesel™.

"Alternative energy sources including ethanol-diesel fuel are currently the center of national concern over energy security, and O2Diesel is pleased to see that Johnson County Transit has chosen to be among the first to use this advanced alternative fuel technology. By using O2Diesel™, Johnson County's transit system joins a growing number of transit fleets taking action to secure our energy independence as well as improving the quality of life for the residents of the communities they serve," said Alan Rae, CEO of O2Diesel Corporation.

More About O2Diesel: The Company and Its Fuel Technology

O2Diesel Corporation (AMEX: OTD) and its subsidiaries are pioneers 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 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.

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