Danica Diesel Supplies Engine Performance Monitoring Equipment to BC Ferries Vessels

West Vancouver – September 30, 2006- 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 been selected by crown corporation British Columbia Ferry Services Inc. (BC Ferries) to supply and install, and monitor precision marine diesel engine performance equipment for three ferries in the fleet.  

BC Ferries vessel Queen of Alberni will be fitted with high-precision engine performance monitoring equipment and software that will assist crew on board monitor how well the engine is running so that they can make adjustments as necessary to improve performance. Queen of Cowichan and Queen of Alberni will be outfitted with a handheld version of the device called the Premet XL, which also includes monitoring software. Graphs and data generated on the computer display on board will help crew diagnose engine issues early before they become more serious and costly problems.

“We hope that this is the beginning of a long-term relationship with BC Ferries,” says Danica’s founder Holger Jacobsen. “We feel confident that we can demonstrate to BC Ferries the economic and environmental benefits of our engine performance monitoring equipment, and that this will encourage BC Ferries to elect to install the equipment on some of their other ferries. The devices installed on the three ferries are also critical components included in our comprehensive EngineWatch remote 24/7 engine monitoring program. While there is no indication or assurance at this time that BC Ferries will participate in our EngineWatch program, we hope they are sufficiently impressed with our service and equipment that they will consider EngineWatch in future.”
                                                                                                    
Danica Diesel plans to continue to leverage its marine diesel engineering expertise through the development of other strategic alliances and systems integrations to advance its it engine performance systems, including its EngineWatch program.

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 including expert engine monitoring and diagnostics, as well as precision measuring equipment for ongoing engine performance.

About British Columbia Ferry Services Inc. (BC Ferries)

British Columbia Ferry Services Inc. (BC Ferries) is the company that provides all major passenger and vehicle ferry services for coastal and island communities in the Canadian province of British Columbia. BC Ferries has become the largest passenger ferry line in North America and the second largest in the world, boasting a fleet of 36 vessels with a total passenger and crew capacity of over 27,000, serving 49 locations on the B.C. coast.

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. British Columbia Ferry Services Inc.is in no way endorsing or warranting the statements 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.