SOURCE: Diversified Industries Ltd.

February 19, 2009 06:00 ET

Patent Issued and Middle East Contract Awarded for Diversified's Proprietary Scavenger Product

RED DEER, AB--(Marketwire - February 19, 2009) - Diversified Industries Ltd. ("Diversified") (TSX-V: DVS) is pleased to announce that after a lengthy negotiation process, CFR Chemicals Inc. has been awarded a contract to supply Diversified's proprietary H2S scavenger to a major government owned oil processor in Kuwait. The contract value is in excess of CDN $800,000 and includes a 3 month supply of chemical. Both parties, assuming success for this particular application, intend to enter into a long term supply agreement that will continue for 3 to 5 years.

Diversified Industries Ltd. ("Diversified") (TSX-V: DVS) is also pleased to announce that the Company has been issued a patent from the US Patent office for its proprietary H2S scavenger. There are real growth opportunities for this product and gaining the formal patent is obviously a major milestone. Patent applications are in place for Canada and Europe and it is anticipated both will be issued shortly. The Company continues to develop other H2S scavengers with varying features providing for more applications in a wider market segment.

Diversified and CFR President / CEO Darren Lamothe commented: "We are all very excited that CFR has been awarded this chemical supply contract to a major oil processor in Kuwait. There are many world wide large volume applications for this chemistry in addition to the Middle East in fact wherever H2S laden oil or gas is produced. This contract is significant as it represents the first large export supply contract for the company and it gives us significant exposure and knowledge for further overseas opportunities. Diversified's proprietary H2S scavenger is a revolutionary product, proven to be much safer to handle than competing trizene-formaldehyde scavengers. It is very effective in all oil, water and gas phases and together with complementary products under development, we can offer a full line of chemicals covering a wide range of different applications. This recent contract award shows a large corporation not only choosing a cost effective product but also demonstrating a responsibility for the environment and the safety of its employees."

Diversified currently owns 50% of CFR Chemicals Inc. with the option to own 100%. The option price is locked in, based on profits accrued over a three year period. For complete details of this transaction please refer to the March 21, 2007 news release.

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On behalf of the Board of Directors:

"Darren J. Lamothe"

Darren J. Lamothe, President/CEO

Statements made in this news release that relate to future plans, expectations, events or performances are forward-looking statements. Such statements involve risks and uncertainties and are based on current expectations. Consequently, actual results could differ materially from the expectations expressed in these forward-looking statements.

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