OMTK OmniTek Engineering Corp (QB)

Omnitek Engineering Corporation (OTCBB:OMTK) today reported results for its fourth quarter and year ended December 31, 2012 -- highlighted by a strong balance sheet to support the company's domestic ramp up of diesel-to-natural gas conversion kit sales.

For the fourth quarter ended December 31, 2012, the company reported a reduced net loss of $50,298, or $0.002 per share, compared with a net loss of $155,384, or $0.01 per share, a year ago. Revenues for the same period were $650,473 compared with $239,817 a year earlier.

As anticipated due, in part, to certain items noted below, the company reported a net loss for the full year of $1.37 million, or $0.07 per share, compared with a net loss of $441,555, or $0.03 per share, a year earlier. Revenues for the full year increased 23 percent to $1.9 million from $1.55 million in 2011.

Results for the twelve-month period reflect the impact of non-cash expenses, including the value of options and warrants granted in the amount of $653,856 and depreciation and amortization of $6,369. For the twelve-month period a year earlier, non-cash expenses for the value of options and warrants granted were $208,706 and depreciation and amortization of $70,484.

Gross margin for 2012 was $927,813 compared with $753,430 a year ago. Gross margin as a percentage of sales for the same period was 49 percent compared with 49 percent last year. Further gross margin improvement is expected as domestic conversion kit sales ramp up and the company benefits from improved component pricing from suppliers and related synergies.

"The past year was a period of continued success for the company -- highlighted by EPA approval, just after year end, for the company's diesel-to-natural gas conversion technology for the widely operated line of heavy-duty Navistar DT466E and DT530E engines, representing an estimated addressable market of 1.5 million heavy-duty trucks and buses. We are continuing to focus on further expansion of the company's conversion center partnerships throughout the United States, most recently in Texas, while remaining focused on leveraging the company's presence since 2001 in international markets – represented by dealers, installers and partnerships throughout Asia, Latin and South America and Europe," said Werner Funk, president and chief executive officer of Omnitek Engineering Corporation.

"With more than eight million heavy-duty trucks on the road in the United States and a return on investment of one year or less for our diesel-to-natural gas conversion kits, the opportunities are significant and the company is better positioned than at any time in its history to capitalize on the pent-up domestic demand for our technology. We look forward to adding other EPA and state-related certifications this year," Funk emphasized.

About Omnitek Engineering Corporation

Omnitek Engineering Corp. develops and sells proprietary diesel-to-natural gas conversion systems and complementary products, including new natural gas engines that utilize the company's technology -- providing global customers with innovative alternative energy and emissions control solutions that are sustainable and affordable.

Some of the statements contained in this news release discuss future expectations, contain projections of results of operations or financial condition or state other ``forward-looking'' information. These statements are subject to known and unknown risks, uncertainties, and other factors that could cause the actual results to differ materially from those contemplated by the statements. The forward-looking information is based on various factors and is derived using numerous assumptions. Important factors that may cause actual results to differ from projections include, among many others, the ability of the Company to raise sufficient capital to meet operating requirements, completion of R&D and successful commercialization of products/services, patent completion, prosecution and defense against well-capitalized competitors. These are serious risks and there is no assurance that our forward-looking statements will occur or prove to be accurate. Words such as ``anticipates,'' ``expects,'' ``intends,'' ``plans,'' ``believes,'' ``seeks,'' ``estimates,'' and variations of such words and similar expressions are intended to identify such forward-looking statements. Unless required by law, the Company undertakes no obligation to update publicly any forward-looking statements, whether as a result of new information, future events or otherwise.

(Financial Tables Follow)

OMNITEK ENGINEERING CORPORATION
Condensed Statement of Income
	For the Three Months Ended December 31,	For the Three Months Ended December 31,	For the Twelve Months Ended December 31,	For the Twelve Months Ended December 31,
	2012	2011	2012	2011
REVENUES	$650,473	$239,817	$1,899,740	$1,546,723
COST OF GOODS SOLD	340,232	139,289	971,927	793,293
GROSS MARGIN	310,240	100,528	927,813	753,430
OPERATING EXPENSES
General and administrative	252,419	205,309	2,041,447	980,255
Research and development expense	119,675	42,516	285,745	143,304
Bad Debt Expense	363	--	363	--
Depreciation and amortization expense	1,773	8,088	6,369	70,484
Total Operating Expenses	374,230	255,913	2,333,924	1,194,043
LOSS FROM OPERATIONS	(63,990)	(155,385)	(1,406,111)	(440,613)
OTHER INCOME (EXPENSE)
Interest expense	--	--	(490)	(145)
Interest income	13,692	1	35,948	2
TOTAL OTHER INCOME (EXPENSE)	13,692	1	35,458	(143)
LOSS BEFORE INCOME TAXES	(50,298)	(155,384)	(1,370,653)	(440,756)
INCOME TAX EXPENSE	--	--	800	800
NET INCOME (LOSS)	$(50,298)	$(155,384)	$(1,371,453)	$(441,556)
BASIC INCOME (LOSS) PER SHARE	$0	$(0.01)	$(0.07)	$(0.03)
WEIGHTED AVERAGE NUMBER OF COMMON SHARES OUTSTANDING	19,092,975	16,670,094	19,092,975	16,670,094

OMNITEK ENGINEERING CORPORATION
Condensed Balance Sheet
ASSETS
	December 31, 2012	December 31, 2011
CURRENT ASSETS
Cash	$3,192,761	$31,196
Accounts receivable, net of allowance of $10,000	120,547	13,506
Accounts receivable -related party	26,455	16,715
Inventory	1,133,595	1,020,117
Prepaid expense	7,440	2,512
Deposits	331,760	41,943
Total Current Assets	4,812,558	1,125,989
FIXED ASSETS, net	14,560	13,249
OTHER ASSETS
Long-term investments, net	1,201,671	--
Intellectual property, net	5,218	8,256
Total Other Assets	1,206,889	8,256
TOTAL ASSETS	$6,034,007	$1,147,494
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES
Accounts payable and accrued expenses	$317,106	$57,828
Accrued expenses - related parties	264,717	351,580
Accounts payable - related parties	--	2,568
Customer deposits	184,109	286,608
Total Current Liabilities	765,932	698,584
Total Liabilities	765,932	698,584
STOCKHOLDERS' EQUITY
Common stock, 125,000,000 shares authorized no par value 19,749,590 and 17,137,812 shares issued and outstanding, respectively	8,196,061	2,659,299
Additional paid-in capital	4,867,169	4,213,313
Accumulated deficit	(7,795,155)	(6,423,702)
Total Stockholders' Equity	5,268,075	448,910
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY	$6,034,007	$1,147,494

CONTACT: Gary S. Maier
         Maier & Company, Inc.
         (310) 471-1288
         gmaier@maierco.com