O2Diesel to Begin Trading on the American Stock Exchange July 1, 2004

NEWARK, Del.--June 30, 2004--O2Diesel Corporation (OTCBB: OTOD.OB), a leading provider of ethanol-diesel technologies, announced today that its common stock will begin trading on the American Stock Exchange under the ticker "OTD" tomorrow, July 1, 2004, at the open of market trading.

Alan Rae, President and CEO of O2Diesel Corp., said, "Our move to the Amex is a significant step in the Company's evolution from a development-stage company to one focused on the full commercialization of our clean-burning diesel fuel technology throughout the U.S., Brazil and other key global markets. As we move forward, our commercialization strategy will include leveraging key partnerships with industry leaders for marketing, distribution and manufacturing of our O2Diesel(TM) product for use by centrally fueled vehicle fleets such as truck and bus fleet operators, as well as the U.S. military, construction equipment and railroads.

"Our listing on the Amex will help increase our visibility in the U.S. investment community, and we look forward to building broad awareness of the O2Diesel investment story among fund managers and analysts as we begin to execute on our strategic goals."

The Company has chosen Weiskopf, Silver & Co. as its specialist firm.

About O2Diesel

O2Diesel Corporation, and its U.S. subsidiary O2Diesel, Inc., is a pioneer in the commercial development of a revolutionary clean-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 laboratory and field tests have demonstrated the effectiveness of O2Diesel(TM) and the introduction of this cost-effective, cleaner diesel fuel is now underway in the United States and other global markets. For more information please consult: 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.

This release is available on the KCSA Public Relations Worldwide Web site at www.kcsa.com.

O2Diesel is a trademark of O2Diesel Corp.

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