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O2Diesel Targeting Ethanol-Diesel Blend for Central American Fleets

3 April 2007

O2Diesel Corporation has entered into a distribution agreement with Geneva-based Fair Energy S.A. for several markets including Colombia and Bolivia.

The agreement was reached and announced at a national press launch of O2Diesel’s ethanol-diesel blend in Bogota, Columbia.

O2Diesel uses 7.7% ethanol, with up to 1% proprietary additive and a cetane improver. In tests against conventional diesel, O2Diesel reduced CO emissions up to 26%; reduces NOx emissions up to 5%; and reduces PM up to 40%.

Countries such as Colombia are perfect markets for O2Diesel. They have substantial air quality issues that are getting worse as they develop and expand economically. Many are net importers of diesel fuel and have competitively priced local ethanol production which can augment this supply. Couple this with a strong partner in Fair Energy and you have all the drivers that have succeeded so well for us in India.

—Alan Rae, CEO of O2Diesel Corporation

Fair Energy is a global integrated energy player in the oil and biofuel markets, sourcing, trading and supplying the full spectrum of both petroleum and biomasses products.

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