Investment Opinion: O2Diesel Speculative Buy Rating Reiterated In Update Coverage By Dutton Associates

EL DORADO HILLS, Calif.--Dec. 2, 20050, 2005--Dutton Associates continues its coverage of O2Diesel Corporation (AMEX:OTD), reiterating a speculative buy rating. The 12-page report by Dutton senior analyst Sally H. Wallick, CFA is available at www.jmdutton.com as well as from First Call, Bloomberg, Zacks, Reuters, Knobias, and other leading financial portals.

O2Diesel Corporation has developed a proprietary, cost-effective ethanol/diesel fuel blend (O2Diesel(TM)) that substantially reduces emissions. To date, the Company has focused mainly on raising capital, performing product tests and demonstrations, and bringing its product to market. O2Diesel reported a third quarter loss of $0.05 per share on revenue of $61,628. The quarter was an eventful period in which O2Diesel announced its fourth CityHome(TM) agreement, initiated pilot programs with two leading sugar and ethanol producers in Brazil, and named a President and COO, Richard Roger. Following the end of the quarter, the Company appointed Dave Shipman Chief Financial Officer, completed a $2.3 million financing, and announced a $3.6 million investment by Abengoa Bioenergy R&D, a Spanish biofuels company. O2Diesel and Abengoa are partnering to develop the European market for O2Diesel(TM). We reiterate our Speculative Buy rating on O2Diesel common stock. The company has made significant progress toward commercializing its product, and it is actively pursuing additional new business opportunities. Also, in many ways, we believe that it is in the right place at the right time to take advantage of a more favorable environment for renewable fuels, because O2Diesel(TM) addresses a growing market for clean-burning fuels with a renewable component and provides users with demonstrable benefits. Because of the significant challenges still ahead, we consider O2Diesel's shares a speculative investment appropriate for risk-tolerant investors.

About Dutton Associates

Dutton Associates is one of the largest independent investment research firms in the U.S. Its 27 senior analysts are primarily CFAs and have expertise in many industries. Dutton Associates provides continuing analyst coverage of over 120 enrolled companies, and its research, estimates, and ratings are carried in all the major databases serving institutions and online investors.

The cost of enrollment in our one-year continuing research program is US $35,000 prepaid for 4 Research Reports, typically published quarterly, and requisite Research Notes. Dutton Associates received $33,000 from the Company for 4 Research Reports with coverage commencing on 3/15/2005. We do not accept payment of our fees in company stock. Our principals and analysts are prohibited from owning or trading in securities of covered companies. The views expressed in this research report accurately reflect the analyst's personal views about the subject securities or issuer. Neither the analyst's compensation nor the compensation received by us is in any way related to the specific ratings or views contained in this research report or note. Please read full disclosures and analyst background at www.jmdutton.com before investing.