Dutton Associates Announces Investment Opinion: O2Diesel Neutral Rating in Initiating Coverage by Dutton Associates

EL DORADO HILLS, Calif.--March 15, 2005--Dutton Associates initiates coverage of O2Diesel Corporation (AMEX:OTD) with a Neutral rating. The 19-page report by Dutton Associates senior analyst Sally H. Wallick, CFA is available at www.jmdutton.com as well as from First Call, Bloomberg, Zacks, Multex, and other leading financial portals.

O2Diesel Corporation has developed a proprietary, cost-effective 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, to a lesser extent, bringing its products to market. As a result, revenue has been minimal. We expect revenue growth to accelerate in 2005 and beyond, as the Company achieves additional regulatory milestones and aggressively pursues the commercialization of O2Diesel(TM). Our rating should not be construed as an indication that we are not excited about O2Diesel's prospects. In fact, we believe that it has a very compelling product that addresses a significant customer need and a large and growing market. We believe that, for the foreseeable future, O2Diesel may be an "event" stock; that is, catalysts for the share price to move higher are likely to be specific events that boost investor confidence in the Company's outlook and improve visibility -- for example, receiving certain regulatory approvals or obtaining new business. We will revisit this rating as the year progresses and, we hope, revenue visibility improves as the Company achieves regulatory and commercial milestones.

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 90 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 $33,000 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.