OTD O2Diesel Corp.

Dutton Associates continues its coverage of O2Diesel Corporation (AMEX:OTD), reiterating a speculative buy rating and a $2.25 price target. 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. The second half of 2007, to date, has been an active period for O2Diesel highlighted by a number of important developments, including: (1) The announcement of the first demonstration programs for O2Diesel in France and in Spain; (2) The departure of Richard Roger, the Company�s President and COO, at the end of July; (3) The American Stock Exchange�s (AMEX) acceptance of O2Diesel�s plan to return to compliance with the exchange�s listing requirements; (4) Inclusion of the Company in the fiscal 2008 Defense Appropriations bill to continue and expand existing demonstration projects for a new clean, renewable alternative diesel fuel, O2Diesel O28, at Nellis Air Force Base and Air National Guard facilities in Nevada; (5) The announcement that the U.S. Air Force is tentatively planning to deploy O2Diesel�s ethanol/diesel fuel technology in the continental U.S.; (6) The addition of a third customer at the Port of Los Angeles, doubling the use of O2Diesel at the port; and (7) Expansion of the Company�s relationship with its Asian distributor, Energenics, including a $2-million investment by Energenics in a joint venture with the Company and receipt of a $2.2 million additive order from Energenics. As indicated, O2Diesel appears to be making progress toward commercializing its product both domestically and internationally. About Dutton Associates Dutton Associates is one of the largest independent investment research firms in the U.S. Its 30 senior analysts are primarily CFAs, and have expertise in many industries. Dutton Associates provides continuing analyst coverage of over 140 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 $97,950 from the Company for 12 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.