SOURCE: O2Diesel Corporation

April 02, 2007 10:36 ET

O2Diesel Enters Agreement With Fair Energy Targeting Central American Fleets

NEWARK, DE -- (MARKET WIRE) -- April 2, 2007 -- O2Diesel Corporation (AMEX: OTD), a pioneer in the development of cost-effective, cleaner-burning, diesel fuels for centrally fueled fleets of all types, announced today that it has recently entered into a distribution agreement with Geneva-based Fair Energy S.A. for several markets including Colombia and Bolivia. The agreement was reached and announced at a national press launch of O2Diesel's™ ethanol diesel blend in Bogotá, Columbia. The press conference, which was attended by Juan Lozano, Columbia's Minister of the environment, followed successful demonstration and emission testing of O2Diesel™ carried out using buses operated by the Bogotá's Trans Millennium mass transit system.

Pierre Alain Puippe, Fair Energy's Global Manager for Biofuels, commented, "I am very optimistic about O2Diesel's growth opportunities in several Central and South American countries. With the support of the government, we intend to quickly implement a larger scale demonstration with the objective of wide scale commercial adoption within 12 months."

Mr. Puippe continued, "Colombia's transit system has nearly 5,000 buses which use more than 100,000,000 liters of diesel fuel per annum, which is our initial target. The introduction of O2Diesel fuel in the transit system should have a subsequent substantial reduction in emissions and smoke from the vehicles, as demonstrated by our test in Bogotá, which could bring an immediate and much needed, improvement in air quality."

Speaking to an assembly of press and the public, Juan Lozano, Colombia's Environmental Minister, commented on his plan to support programs that will improve air quality in his country. Mr. Lozano stated, "We have an obligation with the people of Colombia and the environment, to find solutions to improve the air quality. Today, Fair Energy and O2Diesel are offering us a very important contribution to that solution. We are going to begin testing as required and work to implement adoption by law the use of this Biofuel. When we find the solution we are looking for, we cannot be blind to opportunity, we should embrace it."

Alan Rae, CEO of O2Diesel Corporation, said, "Countries such as Colombia are perfect markets for O2Diesel. They have substantial air quality issues that are getting worse as they develop and expand economically. Many are net importers of diesel fuel and have competitively priced local ethanol production which can augment this supply. Couple this with a strong partner in Fair Energy and you have all the drivers that have succeeded so well for us in India."

About Fair Energy S.A.

Fair Energy is a global integrated energy player in the oil and biofuel markets, sourcing, trading and supplying the full spectrum of both petroleum and biomasses products.

Fair Energy is well placed through its worldwide group of companies active in oil and biofuel trading to offer a highly skilled and professional service thanks to its various strategic infrastructure investments; including production, processing, shipping, storage and terminal access. For more information please refer to www.fairenergy.com

About O2Diesel Corporation:

O2Diesel Corporation 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

  • Contacts:
    fair-energy s.a.
    Pierre-Alain Puippe
    +41.22.591.91.91

    O2Diesel Corporation
    Alan Rae
    +1 (302) 266 6000

    Investors
    Alliance Advisors, LLC
    Mark McPartland
    +1 (910) 221 1827
    Email Contact