NEWARK, DE, May 12, 2005 (MARKET WIRE via COMTEX) -- O2Diesel Corporation (AMEX: OTD) today announced that the Springfield, Illinois, Mass Transit District (SMTD) has joined the CityHome(TM) program, a major national clean air initiative that helps municipal transit systems significantly reduce diesel emissions by burning O2Diesel(TM) fuel at no additional cost to the transit systems.

SMTD is the third municipal transit system to join CityHome, which creates a better quality of life for local residents through cleaner air. SMTD is expected to convert all 40 of its diesel-powered coaches and para-transit vehicles to O2Diesel's cleaner burning ethanol-diesel fuel by the end of June 2005.

Launched nationally on March 10 in Lincoln, NE, CityHome is an innovative partnership involving municipal transit systems, O2Diesel and corporate sponsors. CityHome sponsors, which include Financial Times, Patriot Motorcycles, local corn growers associations and ethanol boards, make it possible for participating cities to offset the added cost of O2Diesel's ethanol-diesel fuel blend. Select SMTD buses will also display CityHome bus wraps as part of the program.

"Leveraging technology to create viable, alternative energy sources including ethanol diesel fuel, is currently at the center of the national energy debate, and O2Diesel is pleased to see that the Springfield Mass Transit District has chosen to be among the first to use this advanced fuel technology," said Alan Rae, President and CEO of O2Diesel. "SMTD has long demonstrated its commitment to operating cleaner city buses, and now through participation in CityHome, its conversion to O2Diesel(TM) fuel continues sending the message that clean air is important to the City of Springfield."

"Through corporate sponsorships, CityHome makes it possible for smaller urban fleets like Springfield Mass Transit to play a meaningful role in helping improve air quality for Springfield residents," said Richard Fix, Managing Director of the SMTD. "We see CityHome as a model program that can become a launch pad for large-scale implementations in major cities around the country, where curbing diesel pollution is an even bigger challenge."

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(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

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.

Media Contact:
Jeff Davis
(619) 233-3030
pr@O2Diesel.com

SOURCE: O2Diesel Corporation

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