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Omnitek Joint Venture in Thailand to Accelerate Conversions of Diesel to Natural Gas

26 December 2007

Omnitek Engineering Corp. and Omnitek Engineering Thailand Co. Ltd., have entered into a joint venture (JV) agreement in Thailand to sell Omnitek’s proprietary diesel-to-natural gas engine conversion kits and new natural gas engines used to repower existing diesel trucks and buses. Omnitek Corp. reports a 15% interest in the JV.

The JV will purchase conversion kits and new natural gas engines from Omnitek and sell them to fleet owners in Thailand. Omnitek will offer training to the fleets to allow them to convert their own diesel engines to natural gas in their own workshop.

Previously, the vehicles had to be delivered to conversion workshops to perform the transformation from a diesel engine to a natural gas engine. As a result of the limited workshops in Thailand, only a small amount of vehicles could be converted every month. Allowing the fleet maintenance garages to perform their own conversions, assisted by technicians from Omnitek Thailand, will greatly accelerate the conversion process.

—Werner Funk, CEO of Omnitek

Omnitek estimates that with this new arrangement up to 5,000 engines can be converted per year.

In November, Omnitek appointed CYT Gas Tech Co. Ltd. to be the exclusive Omnitek natural gas engine warranty and engine parts distribution center for Thailand, as well as a non-exclusive dealer for Omnitek’s CNG engines.

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