Kelso Technologies Generates First Ever Revenue Following Sale To Major U.S. Corporation

VANCOUVER, British Columbia--Aug. 3, 20050, 2005--Kelso Technologies (TSX VENTURE:KLS) is pleased to report that it has made its very first sale of its JS75 SRV pressure relief valve to a major US Chemical Manufacturer and Fleet Operator.

This landmark sale is a further confirmation of industry's endorsement of Kelso's innovative technology for use in the transport of hazardous commodities. The buyer has a diverse product mix ranging from chemicals to polymers to industrial coatings with annual sales in the billions. With this purchase, the JS75 will commence the qualification process and economic assessment to being adopted as a standard product on the buyer's purchasing database. Given the performance of the JS75 in the AAR Service Trials, this purchase may lead to changing out this customer's large fleet of tank cars. The buyer, which requested that Kelso not use its name publicly, did so as the product is entering its evaluation process.

Kelso has scheduled meetings with similar US companies in the oil and gas and chemical industries to sell its JS SRV pressure relief valves and is pleased to confirm significant interest. In particular, Kelso is targeting the top chemical manufacturers and oil and gas shippers who have both the reasons and financial interest to purchase Kelso's innovative technology for their rail tank car fleets. The interest shown in the US confirms Kelso Technologies' recent decision to proceed with setting up marketing and sales operations in the USA.

"We are committed to continuing to focus our attention on the sale of our JS75 SRV technology and will penetrate the market for our valves by making in-roads like this with major shippers and tank car lessors/owners. Others in the rail industry will begin to follow this lead as they see how our technology performs and how ground-breaking it is. Our recently formed U.S. subsidiary will take on primary responsibility for these sales," stated John L. Carswell, Kelso's President and CEO.

The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this Release.

Kelso Technologies Inc. (TSX VENTURE:KLS)