SOURCE: O2Diesel Corporation

March 30, 2005 01:00 ET

O2Diesel Obtains Approval From Brazil's National Petroleum Agency for Fleet Use

O2Diesel™ Becomes Brazil's Only Approved Alternative Diesel Fuel

NEWARK, DE -- (MARKET WIRE) -- March 30, 2005 -- O2Diesel Corporation (AMEX: OTD) today announced that Brazil's National Petroleum Agency ("ANP") has approved O2Diesel™ as an alternative diesel fuel for use in bus, truck and off road fleets.

The ANP approval follows eight months of thorough evaluation of the emission and performance data from O2Diesel™ tests in the US and Brazil. The ANP authorization No. 28, dated Jan. 28, 2005, was published in the Diário Oficial da União on Jan. 31, 2005. Without this approval, fuel that does not conform to the specifications for standard diesel fuel cannot be sold in Brazil, and O2Diesel™ is presently the only ANP-approved alternative diesel fuel. O2Diesel plans to start its captive fleet test program in the city of Rio de Janeiro, in April 2005.

"This approval is an important milestone in the commercialization of O2Diesel™ in the Brazilian market," said Alan Rae, O2Diesel's President and CEO. "Like most countries, Brazil relies heavily on diesel fuel for both urban mobility and the transportation of goods. Brazil is a net importer of diesel fuel and we believe that there are strong environmental and economic reasons for O2Diesel™ to play an important role in the Brazilian diesel fuel market."

Fuel ethanol has played an important role in the Brazilian economy since the 1970s with its introduction both as a motor fuel and as a gasoline additive. Today every gallon of gasoline sold in Brazil contains a minimum 20% ethanol content.

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 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 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" is a trademark of O2Diesel Corp.

Contact Information

  • Company Contact:
    Alan Rae
    President & CEO
    O2Diesel Corporation
    302-266-6000
    ir@o2diesel.com