SOURCE: O2Diesel Corporation

February 20, 2008 11:31 ET

O2Diesel Renews Agreement With StarTran Transit for Use of O2Diesel™ Fuel

NEWARK, DE--(Marketwire - February 20, 2008) - O2Diesel Corporation (AMEX: OTD) announced today that StarTran Transit of Lincoln, NE, the first bus fleet to operate using O2Diesel's proprietary clean fuel technology, has renewed their agreement for up to an additional three years of operation on O2Diesel™ fuel. StarTran's bus fleet has been operating successfully since 2005 on O2Diesel™ fuel. It is estimated that StarTran is reducing the emissions from their diesel power fleet by four tons per year, significantly improving the air quality and the quality of life for inhabitants of the Lincoln, Nebraska community.

The program is part of a national diesel emission reduction initiative designed by O2Diesel to improve air quality and the quality of life for municipal and school transit systems and the communities they serve. The continuation of the program by StarTran marks the beginning of its fourth year of commercial operations and application in the US. O2Diesel's clean fuel technology is a viable turnkey solution that allows city transit and school systems to immediately reduce emissions, petroleum consumption and dependence on foreign oil by burning cleaner O2Diesel™, an ethanol blended diesel fuel containing 7.7% renewable ethanol, up to 1% of the company's proprietary fuel technology and approximately 92% diesel fuel.

Larry Worth, Transit Manager of StarTran, stated, "We are pleased to enter our fourth year of operation using O2Diesel™ fuel. Our motivation for using O2Diesel's fuel is that we recognize it is a much cleaner and more environmentally friendly fuel which provides health and safety benefits for our riders, employees, and local citizens. A better environment is our number one priority. In addition, StarTran has been and continues to be a leader in testing and evaluating alternative fuels. We want to do our part to utilize alternative fuels in our daily operation and O2Diesel™ is a proven and readily available solution we are committed to using."

Alan Rae, CEO O2Diesel Corporation, commented, "StarTran was the first bus fleet in the US to test O2Diesel in 2000 and the first to convert to full time use over three years ago. Their commitment to clean burning alternative fuels and the use of renewable biofuels is a great example to all diesel powered fleets still running on regular diesel. O2Diesel™ is a real alternative to regular diesel fuel that can be used without incident in your current fleet. It also provides further evidence and validation that our clean fuel technology can address the clean fuel alternative needs of fleets both today and in the future."

More About O2Diesel: The Company and Its Fuel Technology

O2Diesel Corporation (AMEX: OTD) and its US subsidiary O2Diesel, Inc. 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 prices. 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