SOURCE: O2Diesel Corporation

May 01, 2007 11:13 ET

O2Diesel's Asian Distributor Energenics Secures Substantial Order Backlog

Transition of 2,500 Buses Using O2Diesel's Technology in India Continues

NEWARK, DE -- (MARKET WIRE) -- May 1, 2007 -- O2Diesel Corporation (AMEX: OTD), a world leader in the development of clean fuel technology, today announced that the Company has received orders for in excess of 70,000 litres of its proprietary fuel technology from its Asian distribution partner, Energenics. The orders were placed in order to meet the expanding use of the O2Diesel™, an ethanol blended diesel fuel, by the Karnataka Road Transport Corporation (KSRTC) who are based in Bangalore within the State of Karnataka, India and to support commercial trials in Thailand, Philippines, Singapore & Australia. Energenics is in the process of transitioning the first 2,500 of Karnataka State's 16,000 bus fleet to the proprietary ethanol diesel blend. which is marketed in India by the company's exclusive regional distributor, Energenics, as "Enerdiesel powered by O2Diesel."

The shipments associated with the order are expected to be completed during the months of June, July and August and mark the Company's largest backlog of orders since its inception. The 70,000 liters will provide enough of the Company's proprietary fuel technology to deliver over 14 million liters of O2Diesel™, which is comprised of 7.7% of renewable ethanol and 0.5% of the O2Diesel's proprietary fuel blending technology with the remainder consisting of any diesel fuel.

Alan Rae, Chief Executive Officer of O2Diesel, commented, "We continue to see excellent progress in India. This is a direct result of the heightened level of interest in our products, which stems from Energenics commitment and hard work in establishing a strong foothold in Karnataka. The progress they have made to date is substantial and supports our theory that pricing our fuel to compete with regular diesel pricing creates great opportunities for market penetration. We hope to replicate this model in other markets and believe that when the price factor is removed it can have a substantial impact on the future of O2Diesel."

Ronen Hazarika, Managing Director of Energenics, commented, "We are making great progress with KSRTC in the transition of their fleet and have received significant inquires regarding the trial of Enerdiesel powered by O2Diesel in nearby states. We are quickly expanding our depot footprint to accommodate the demand in order to provide a seamless transition for other fleets. To date we are in the process of installing blending systems at the refueling sites within the state owned bus depots and will have completed 35 installations by the end of the third quarter. This will give us the capacity to convert nearly 120 million liters of fuel to O2Diesel's cleaner burning fuel. Bangalore is only the beginning and a sign of what we may expect as the tremendous work of KSRTC is reported to other bus fleets, not only across India but across Asia Pacific.

All three components of the fuel, the ethanol, O2Diesel additive and local diesel fuel, are blended at the dispensing pump directly into the bus. This procedure was first used by O2Diesel in Brazil in 2004 but has been completely re-engineered by Energenics and its partners into a cost effective, fully automated, state-of-the-art computerized injection blending unit that ensures an extremely high level of quality control and real time remote monitoring. The blending unit enables the existing pump to deliver both Enerdiesel and regular diesel, if required. Delivering the solution in this manner ensures protection from contaminants in the diesel storage tank and also enables complete independence from fuel blenders and oil companies, thus giving more control to those fleets that wish to utilize the fuel as part of their program.

About O2Diesel: The Company and Its Fuel Technology

O2Diesel Corporation (AMEX: OTD), and its U.S. 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™ and 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.

About Energenics:

Energenics is a supplier of alternative energy solutions and technologies, providing customers access to switched or phased renewable fuels programs that enable energy and emission reductions at zero or minimal capital cost compared to existing technologies.

Energenics identifies, invests, sources, validates and commercializes energy technology.

Energenics has a strong customer base comprising transportation groups, mining companies, and port and marine operators throughout the Asia Pacific region. Our goal is to improve the use of conventional energy sources, reduce emissions and, ultimately, phase in the use of alternative energy solutions to benefit the environment and their customers.

Energenics' strategy is to become the Asia Pacific's first truly integrated supplier of innovative technologies to help meet targets in energy reduction and climate change in mobile and stationary sources.

Contact Information

  • Contact:
    Company Contact:
    O2Diesel Corporation
    Alan Rae
    +1 (302) 266 6000
    Or
    For Investors and Press:
    Alliance Advisors, LLC
    Mark McPartland
    +1 (910) 221 1827

    For Energenics:
    Ronen Hazarika
    Managing Director
    7 Temasek Boulevard,
    Suntec City Tower 1 #04-01A/03
    Singapore 038987

    Tel. +65 6341 9650
    Fax. +65 6341 9610