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O2Diesel Announces Ethanol-Diesel Fuel Implementation in Johnson County, Kansas Buses Through CityHome(TM) Program


NEWARK, DE, 03/17/2005, O2Diesel Corporation (AMEX: OTD) today announced the municipal bus system serving Johnson County, KS, will begin the first of a two-phase implementation to convert its 75-bus fleet to O2Diesel’s ethanol-diesel fuel blend. Phase one of the implementation, which begins immediately, involves 11 Johnson County buses, and is expected to last approximately three months before the commencement of phase two, which will see the balance of the fleet convert to O2Diesel™.

Johnson County falls within the jurisdiction of the Kansas City Area Transportation Authority, the interstate agency serving a seven-county area in Missouri and Kansas. As part of phase one, Johnson County will monitor and assess the benefit of O2Diesel’s cleaner burning ethanol-diesel fuel on the local air quality. Tests have shown O2Diesel™ significantly reduces black smoke and harmful diesel emissions.

Johnson County is the latest Midwestern transit authority to begin converting its bus fleet to O2Diesel™, made possible through our CityHome™ program which is a clean air partnership between O2Diesel, corporate sponsors and local transit authorities. Corporate sponsors make it possible for Johnson County’s transit system to offset the added cost of O2Diesel’s ethanol-diesel fuel blend. CityHome was launched nationally on March 10 with the StarTran system in Lincoln, NE, converting their 67 buses to O2Diesel™.

“By using O2Diesel™, Johnson County joins a growing number of municipal transit fleets taking action to improve the quality of life for the residents of the communities they serve,” said Alan Rae, CEO of O2Diesel Corporation.

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

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” and “CityHome” are trademarks of O2Diesel Corp.


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