Danica Diesel Receives Venture Capital from Cornerstone Technologies Inc. for Development of Innovative EngineWatch Program

West Vancouver - December 7, 2007  Danica Diesel Ltd. (“Danica” or the “Company”) (www.danicadiesel.com), a Canadian Eligible Business Corporation (EBC) that converts marine diesel engines into ECOengines to maximize performance and minimize pollution, providing ECOnomic and ECOlogical benefits for vessel operators, has just announced that Cornerstone Technologies Inc. (“Cornerstone”), a B.C. Venture Capital Corporation, has agreed to purchase $1,000,000.00 of the Company’s preferred shares, representing an approximately one third interest in Danica Diesel.

Cornerstone’s investment is earmarked for the development of the Company’s innovative EngineWatch program and is expected to dramatically propel Danica’s growth. The Company will be the first provider to service the marine industry with a global real-time multiengine performance monitoring program for large marine vessels that is remotely analyzed by diesel engine specialists 24/7. Around-the-clock data on a variety of a vessel's critical engines parameters will be monitored and diagnosed anywhere in the world while the vessel is at sea. EngineWatch was conceived by Danica’s founder, diesel engine specialist Holger Jacobsen, to offer clients immediate cost-effective access to diesel engine experts.

States Jacobsen, “Cornerstone’s investment will provide Danica with the funds needed to capitalize on a burgeoning niche market in the marine industry. More vessels are in service now than ever before in marine history, however training for crews has not kept pace with technology. The complexity of skills required to operate the massive engines is becoming more difficult to find, resulting in a decline of expertise on board. EngineWatch helps fill this skill gap by providing vessels with immediate remote assistance by marine diesel engine experts. Essentially, we provide vessel operators with an immediate solution to their diesel engine problems anywhere, anytime.”  

EngineWatch also enables a vessel’s engine problems to be diagnosed and rectified at an early stage, preventing the potentially exorbitant costs often associated with engine failures for parts and lost hire. By monitoring and fine-tuning a vessel's engines both the operator's bottom line and the environment benefit, as an optimized engine also reduces polluting emissions.

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 providing environmental benefits. 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 Cornerstone Technologies Inc. 

Cornerstone is an approved B.C. Venture Capital Corporation that operates subject to the B.C. Venture Capital Act.

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. Cornerstone Technologies Inc. or their agents and representatives are 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.