Company

O2DIESEL CORP. (AMEX:OTD), IS A PIONEER IN THE COMMERCIAL DEVELOPMENT OF A REVOLUTIONARY NEW DIESEL FUEL THAT DELIVERS EXCEPTIONAL PERFORMANCE AND ENVIRONMENTAL BENEFITS FOR CENTRALLY-FUELED FLEETS AND DIESEL POWERED EQUIPMENT OF ALL KINDS. THE COMPANY’S PRODUCT, O2DIESEL™, IS AN ETHANOL-DIESEL BLEND DEVELOPED USING THE COMPANY’S PATENTED AND PROPRIETARY FUEL TECHNOLOGY THAT SUBSTANTIALLY REDUCES HARMFUL EMISSIONS WITHOUT SACRIFICING POWER AND PERFORMANCE.

Extensive emissions laboratory and field tests in Europe, Brazil, Canada and the United States have proven the effectiveness of O2Diesel™. The introduction of this proven cost-effective, cleaner diesel fuel is now underway in North America, Brazil, Europe and other global markets.

Formerly known as AAE Technologies, Inc. (AAE), the company was founded in the United Kingdom in 1997 . The company was acquired by O2Diesel, Corp. in July, 2003 and is now based in Newark, Delaware and is publicly-traded on the American Stock Exchange (AMEX:OTD).

STRATEGIC PARTNERS

From the beginning the company has expanded its research, product development, production, and commercialization efforts through a network of strategic partnerships. These partnerships provide O2Diesel with the ability to advance the company’s markets and technology beyond that which it could undertake alone. Partners include:

Abengoa Bioenergy (AbengoaBioenergy.com): In 2005 O2Diesel Corp. entered into a five year agreement with Abengoa Bioenergy R&D;, Inc. an indirect wholly-owned subsidiary of Abengoa Bioenergy, S.A. to demonstrate and develop the commercial market for O2Diesel™ in Europe. Abengoa Bioenergy R&D; is the largest individual shareholder in O2Diesel Corp. and Abengoa Bioenergy, S.A., is the largest producer of bioethanol for biofuels in Europe. 70% of the EU transportation fuels market is diesel fuel and with European Directive (2003/30/EC) seeking to replace 5.75% of fossil fuels with biofuels, both Abengoa and O2Diesel Corp. see a substantial opportunity for O2Diesel™ in this market.

Cognis Deutschland Gmbh (Cognis.com): This leading global specialty chemical manufacturer operates in industrial markets around the world. O2Diesel, Corp. has partnered with Cognis on research, development and manufacturing for the company’s proprietary products.