COMPANY NEWS AND PRESS RELEASES FROM OTHER SOURCES:
O2Diesel to Begin Testing New Ethanol - Biodiesel Blend With Ben Franklin Transit of Richland, Washington
NEWARK, DE, Oct 19, 2006 (MARKET WIRE via COMTEX) -- O2Diesel Corporation (AMEX: OTD), a pioneer in the development of cost-effective, cleaner-burning, ethanol blended diesel fuels for centrally fueled fleets, today announced that it had entered into an agreement with Ben Franklin Transit (BFT) in Richland, Washington, to begin testing a blend of O2Diesel(TM) in combination with a B-20 Biodiesel blend in 20 transit buses. Alan Rae, Chief Executive Officer of O2Diesel, commented, "Ben Franklin Transit is the first transit company in the US that will operate on O2Diesel's ethanol diesel with B-20. The new fuel is a blended Ultra Low Sulfur Diesel (ULSD) fuel alternative which is 28% renewable, since this composite fuel consists of renewable ethanol, O2Diesel's biomass-based fuel technology and biodiesel. We continue to expand our portfolio of product offerings to deliver the most technically advanced and environmentally friendly alternatives to our potential long-term customers. This new blended fuel helps create new opportunities for the Company as we continue to make advancements with our proprietary technology."
O2Diesel first began research and development on ethanol/biodiesel blends in conjunction with the Department of Defense, and is currently doing emission testing with various biofuel blends at Southwest Research Institute (SWRI) in San Antonio, Texas. Initial observations point to a number of synergies achieved by combining the renewable fuels, both in the area of emissions as well as storage and handling.
The fuel will be distributed by Connell Oil Inc. in Pasco, Washington. Connell Oil was recently recognized by the City of Richland in conjunction with Ben Franklin Transit's "Green Business of the Year" award. The distribution agreement with Connell Oil extends the number of strategic distributors to 6 in the US while providing a footprint in the Northwest Corridor for O2Diesel.
Ben Franklin Transit will be testing the 28% renewable fuel throughout the coming winter months where temperatures can drop well below 30 degrees Fahrenheit, an environment where many other blended fuels have failed to yield positive performance. O2Diesel is developing what may be considered a "Winter Blend" additive that is formulated to work specifically with representative fuel samples from colder geographic climates, such as Richland, WA.
Tim Fredrickson, General Manager of Ben Franklin Transit, stated, "With the forecasted limited availability of No.1 ULSD fuel to create the usual cold weather blends, many fleet operators are searching for new blended solutions which are more readily available and operate effectively in cold winter climates. We are hopeful that by partnering with O2Diesel we can satisfy our cold weather concerns while achieving our emission reduction and renewable objectives in the future."
Richard Ciccone, Ben Franklin Transit's Fleet Manager, stated, "Ben Franklin's intent is to move forward with the fuel in all of our diesel buses pending the successful demonstration of the fleet test and the results from engine testing being carried out by Torque-A-Matic in Spokane Valley, Washington."
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(TM) 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(TM) -- 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.
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COMPANY NEWS AND PRESS RELEASES FROM OTHER SOURCES:
O2Diesel Selects Energenics Pte Ltd as Exclusive Distributor for Asia Pacific & South Africa for Its Cleaner Burning Ethanol Diesel Blend
NEWARK, DE, Oct 19, 2006 (MARKET WIRE via COMTEX) -- O2Diesel Corporation (AMEX: OTD) today announced that it has signed a five-year supply agreement for Asia Pacific & South Africa with Singapore-based Energenics Pte Ltd, a wholly owned subsidiary of Energenics Holdings Pte Ltd. Energenics will brand the pioneering cleaner burning fuel as "EnerDiesel -- Powered by O2Diesel," in Asia Pacific & South Africa. The transaction consists of an investment by Energenics of $1,000,000 to acquire a holding of O2Diesel Corporation's common stock and a five-year agreement for the supply of O2Diesel's proprietary fuel technology which replaces the company's previously announced supply and distribution agreement with Blue Diamond Australia Pty Ltd.
Ronen Hazarika, Managing Director of Energenics commented, "We've been working closely with O2Diesel since the start of 2006 on evaluating the potential of O2Diesel's ethanol-diesel blend in our target markets. We have also spent considerable resources on independently verifying the technical aspects of this fuel through accredited engine test facilities, analytical laboratories and in field trials with our customers. The signing of this significant contract is a result of a very successful commercial and technical validation of the product."
"The results of our cooperation with Energenics has been excellent as Energenics has demonstrated substantial technical competence and commitment to the program," said Alan Rae, Chief Executive Officer of O2Diesel Corporation. "We are enthusiastic about the potential for these new markets where the need to reduce emissions and reduce imported oil dependency is an important political and economic driver."
Energenics is committing significant further resources in establishing a dedicated technical team to support the commercial team's roll out of O2Diesel in the region, initially focusing on centrally refueled transport & mining applications, before expanding into stationary and marine applications. To support the planned expansion of the trial fleets to commercial customers, Energenics has placed orders with O2Diesel for 66,000 litres of O2Diesel additive with further orders anticipated for 2006. These orders are in addition to the 16,600 liters purchased by Energenics earlier this year. The additive will be manufactured at a local site in Asia Pacific by O2Diesel's manufacturing partner Cognis Gmbh, and then will undergo a final blending step in Singapore by Energenics.
Energenics also has been successful in enabling simple customer conversions to "EnerDiesel -- Powered by O2" by providing a full turnkey blending operation at customers' refueling depots. Specialized on-site ethanol storage tanks are installed along with Energenics' state-of-the-art computerized blending equipment, which will automatically blend diesel, ethanol and the patented O2Diesel additive into a clear stable solution prior to being dispensed into the tank of the vehicle. Delivering the solution in this manner ensures protection from contaminants in the diesel storage tank and also enables complete independence from the fuel blenders and oil companies. The system also enables future additive or ethanol supplies to be made on an automated just in time basis via its live telemetry reporting function.
The parties entered into a Common Stock and Warrant Purchase Agreement for 1,371,742 shares of O2Diesel's common stock at a purchase price of $0.729 per share in a private placement, for total proceeds of $1,000,000. As part of the sale, O2Diesel will also issue warrants to purchase 685,871 shares of common stock at an exercise price of $0.972 per share during the period of six months to sixty-six months of issuance. The warrants expire sixty-six months after the date of issuance. Energenics' obligation to purchase the shares is subject to O2Diesel satisfying certain additional conditions. O2Diesel anticipates that this financing will close within 30 days.
As part of the transaction, upon certain purchases of O2Diesel(TM), O2Diesel has agreed to sell up to an additional $250,000 of its common stock to Energenics at a purchase price of $0.729 per share for 342,936 shares and to issue warrants to purchase up to 685,871 shares of common stock at an exercise price of $1.1664 per share. These warrants expire sixty-six months after the date of issuance.
The common stock and the warrants will be issued to the accredited investor in a transaction that will be exempt from registration pursuant to Section 4(2) of the Securities Act of 1933, as amended (the "Securities Act"), and/or Regulation D promulgated under the Securities Act
-------------------- ......in Psychiatry circles it's known as a "warning sign"
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