SOURCE: O2Diesel Corporation

July 27, 2006 11:44 ET

O2Diesel Announces New CityHome™ Program Participant Dakota Trailways®

School and Tour Bus Operators Switch to the Company's Proprietary Ethanol-Diesel Fuel

NEWARK, DE -- (MARKET WIRE) -- July 27, 2006 -- O2Diesel Corporation (AMEX: OTD) today announced that the school bus and tour service provider, Dakota Trailways, of Spearfish, SD, will begin the first of a two-phase implementation to convert its entire school and tour bus fleet to O2Diesel's proprietary ethanol-diesel fuel blend. The school bus implementation, which begins immediately, services the Spearfish School District 40-2. Conversion of the 25 tour buses to O2Diesel™, some of which service the Mt. Rushmore National Monument, will commence later in the year.

Dakota Trailways is the latest bus service in the corn and ethanol belt to commit to converting its fleet to O2Diesel™, through the CityHome™ program, a growing national air quality initiative between O2Diesel, corporate sponsors and diesel powered fleets. The support of CityHome sponsors, details of which can be found at ( ensures the school bus extension of the program by meeting any costs associated with the switch to O2Diesel's ethanol-diesel fuel blend. This makes it possible for participating fleets to use clean burning renewable fuels despite the strain on budgets caused by rising diesel fuel prices. CityHome was launched nationally in 2005 with the StarTran system in Lincoln, NE, when they converted their 67 diesel powered buses to O2Diesel™.

Dakota Trailways, a contract school bus service provider and national tour bus company, was established in 1956. "Dakota Trailways is pleased to be the first school bus and tour bus company to switch to an ethanol-diesel cleaner fuel, O2Diesel™. Not only does CityHome help improve the quality of life for the children on our buses and the local citizens by substantially reducing diesel air pollution, it also has a broader impact across the region by supporting South Dakota's agricultural economy, while reducing dependence on foreign oil supplies," said Mel Ladson, President of Dakota Trailways.

"Children's health is extremely important and the switch to ethanol-diesel will lower harmful emissions, improve air quality and help children breathe easier," said Tom Slunecka, executive director of the Ethanol Promotion and Information Council (EPIC). "We are very pleased to support Dakota Trailways' switch to O2Diesel™ for the school buses serving the Spearfish schools and encourage other school districts to do the same."

"The problems with emissions from School Buses have been well documented and we are very pleased to work with Dakota Trailways and CityHome Sponsors in implementing the decision to convert all of Trailways' buses to O2Diesel's ethanol-diesel fuel," said Alan Rae, CEO of O2Diesel. "The CityHome program continues to prove itself as a valuable community relations program that not only benefits schools, transits, and local residents in tangible ways, but also sends a strong message that individual members of our communities, like Mel Ladson, are serious about implementing alternative fuel programs that benefit air quality, while beginning to loosen the ties to non-renewable fuel sources."

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 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

Forward-Looking Statements

"Safe Harbor" Statement under the Private Securities Litigation Reform Act of 1995: Statements in this press release regarding O2Diesel Corp's business which are not historical facts are "forward-looking statements" that involve risks and uncertainties. For a discussion of such risks and uncertainties, which could cause actual results to differ from those contained in the forward-looking statements, see "Risk Factors" in the Company's Annual Report or Form 10-K for the most recently ended fiscal year. "O2Diesel" and "CityHome" are trademarks of O2Diesel Corp.

Contact Information

  • Contact:
    O2Diesel Corporation
    Alan Rae
    +1 (302) 266 6000

    Alliance Advisors, LLC
    Mark McPartland
    +1 (910) 221-1827