Omnitek Engineering Enters Peruvian Market With Exclusive Distribution Agreement and $4.5 Million CNG Conversion Contract

Initial Order to Convert Fleet of Diesel Engine Vehicles


SAN MARCOS, Calif., March 18, 2009 (GLOBE NEWSWIRE) -- Omnitek Engineering Corporation (Pink Sheets:OMTK) today announced the appointment of G&W Group, S.A. as the company's exclusive agent in Peru and an initial order valued at approximately $4.5 million for its diesel-to-natural gas conversion systems.

The conversion order is for a fleet of beverage and milk delivery vehicles owned and operated by Lima-based Leche Gloria, S.A. The conversion project, which is expected to commence in April and be completed over a two-year period, is being financed by the natural gas supplier GNC Energia Peru S.A. in cooperation with Caja Metropolitana, a Lima-based bank that provides individual and commercial financing for the conversion of vehicles to operate on natural gas. The conversion costs are being offset by GNC Energia charging a higher market rate for natural gas, but at a rate still below the cost of diesel fuel. GNC Energia is also financing the cost of installing refueling stations for Leche Gloria.

"Peru represents an excellent opportunity for our company to participate in this country's commitment to reduce dependence on fossil fuels and carbon emissions. Converting high-polluting diesel powered engines to operate on natural gas is an effective and economical solution -- significantly less expensive then purchasing new natural gas vehicles. We look forward to working with G&W Group on numerous other anticipated conversion projects in the near future," said Werner Funk, president and chief executive officer of Omnitek Engineering Corporation.

About Omnitek Engineering Corporation

Omnitek Engineering, Corp. develops and sells new natural gas engines, as well as proprietary diesel-to-natural gas conversion systems -- providing global customers with innovative alternative energy and emissions control solutions that are sustainable, affordable and designed to combat global warming.

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.



            

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