Danica Diesel Ltd. Allies with Trans Marine Propulsion Systems to Provide Engine Monitoring Equipment to Horizon Lines

West Vancouver –  September 13, 2007 Danica Diesel Ltd. (www.danicadiesel.com), a Canadian corporation that converts marine diesel engines into ECOengines to maximize performance and minimize pollution in order to provide ECOnomic and ECOlogical benefits for vessel operators, has formed a strategic partnership with Trans Marine Propulsion Systems to supply, install and monitor German-engineered, world-renowned Lehmann & Michels, GmbH (Lemag) precision engine performance measuring instruments. The companies have been selected by Horizon Lines, Inc. (NYSE: HRZ) to install the measuring devices on three vessels in Horizon Lines’ container fleet.

States Holger Jacobsen, Danica Diesel’s founder, "We are delighted to be aligned with Trans Marine because for almost a quarter of a  century Herb Roeser and his team have consistently provided informed insights to their customers to allow them to optimize diesel engine performance.“

Trans Marine’s CEO Herb Roeser sees his company’s new alliance with Danica Diesel as a positive step that will enable Trans Marine to expand its scope of services. “We are very delighted with our association with Danica both for the access it offers to quality products and condition-monitoring expertise to optimize engine performance. With the experience of our service technicians and the quality of Danica's product we have a one-stop solution for engine monitoring for all vessel operators and owners.”

The equipment to be installed on the Horizon Line vessels are Lemag's PREMET XL product, an electronic hand-held instrument for recording and storing peak pressure from each cylinder of an engine. It is very easy to set up and the measurements can be taken even on short trips. The analysis will provide all the essential data about the engine including the mean indicated pressure, indicated power, firing pressure, and the correspondence between the crank angle and pressure. The instrument is highly accurate and even compensates for the temperature changes before every measurement. By doing an engine performance analysis before and after every major overhaul, ship owners and operators will gain critical information about the condition of the engine.  Before the overhaul, engine performance analysis will indicate which parts and components need reconditioning, and the extent to which the injection and valve timings need to be adjusted for optimum performance.  After the overhaul, an engine performance analysis will confirm that the overhaul was done correctly.

"Information provided by the PREMET XL prior to an overhaul, or after to verify the value of the service performance, is key for vessel owners/operators," stresses Shane Roeser, President of TMPS. "Our customers have found the service and equipment to be extremely helpful and cost-effective. ”Imagine knowing conclusively ahead of time if the stated repairs by your chosen service facility are really needed, and then to be able to double-check the service performed using analysis, and not just a sea trial.”

One happy customer is Horizon Lines. “We saw an opportunity to outfit our new ships with this system from the ground up. With the Premet XL machines we have been able to effectively monitor our vessels' engines and foresee any issues that may arise before they become emergencies," reports Craig Johnson, Port Engineer of Horizon Lines.

“The precision performance monitoring equipment supplied to Horizon Lines includes components that we integrate into our innovative EngineWatch remote engine performance monitoring system,” states Holger Jacobsen of Danica Diesel. “While there is certainly no assurance that Horizon Lines will participate in the EngineWatch program, we are hopeful this vessel operator will consider the benefits of installing our integrated EngineWatch system on its fleet in the future.” EngineWatch is an innovative monitoring system that provides real-time around-the-clock data on a variety of a vessel's critical engine parameters so that engine performance can be monitored and diagnosed remotely diesel engine specialists while the vessel is anywhere in the world at sea.

About Danica Diesel Ltd.

Danica Diesel Ltd. (www.danicadiesel.com) provides services and products that facilitate marine diesel engine performance excellence, thereby reducing operating and maintenance costs and benefit the environment. Danica aims to convert marine diesel engines into ECOengines, minimizing vessel pollution by maximizing engine performance, resulting in ECOnomic benefits for vessel operators. The company provides a variety of specialized technical consulting services to optimize engine performance including expert engine monitoring and diagnostics, and precision measuring equipment for ongoing engine performance.

About Trans Marine Propulsion Systems, Inc.

Trans Marine Propulsion Systems, Inc. (TMPS) (www.transmarine.org), is a Seattle-based marine sales, service, engineering and vessel management company with a global reach. For over 20 years TMPS has serviced ship owners, offshore operators, power plants, mechanical industries, and ship and engine builders all over the world.

About Horizon Lines, Inc.

Horizon Lines, Inc. is a leading American domestic ocean container shipping and integrated logistics company with a fleet of 21 U.S.-flag vessels. A fully integrated service provider of ocean transportation, trucking, terminal and warehousing operations, Horizon Lines also owns Horizon Services Group, an organization with a diversified offering of transportation management systems and customized software solutions being marketed to shippers, carriers, and other supply chain participants.
 
Media Enquiries

Holger Jacobsen
Tel: 604-925-8340
Fax: 604-925-8350
Email: holger.jacobsen@danicadiesel.com
Website: www.danicadiesel.com

Forward-Looking Statements

This press release may contain forward-looking statements that involve risks and uncertainties. All forward-looking statements are made as of the date hereof and are based on the information available to the parties as of such date. These forward-looking statements reflect our current expectations and are subject to a number of risks and uncertainties including, but not limited to, changes in technology, legislation, regulations and general market conditions. Horizon Lines, Inc. and Trans Marine Propulsion Systems, Inc., or their agents and representatives, have not endorsed or warranted the statements contained in this press release. Due to the many risks and uncertainties, Danica Diesel Ltd. cannot assure that forward-looking statements that may be contained in this press release will be realized.