Full Steam Ahead as Kelso's CEO Outlines Vision for the Future Following AAR Approval.

Business Editors

VANCOUVER, British Columbia--(BUSINESS WIRE)--Feb. 12, 2003

Kelso Technologies (TSX VENTURE:KLS) President & CEO, Stephen L. Grossman today released a detailed statement outlining the Company's vision for growth following Monday's announcement (on February 10, 2003) about the Association of American Railroads' (AAR's) North American approval of its JS75 SRV Pressure Relief Valve.

In an unusual move for Kelso, Grossman shares his vision for the Company's growth with all interested stakeholders at this dramatic juncture in the Company's evolution.

According to Grossman, Kelso developed its external valve technology to eliminate some of the internal valve problems brought on by their components mixing with the contents that might be stored or transported in a container. It took many years and millions of dollars to deliver a different and somewhat revolutionary external valve known as the Kelso JS75 SRV Pressure Relief Valve. Furthermore, although the technology developed could have multiple applications across a number of industries, initial development focused on the Rail Industry, an industry that is highly self-regulated and has an extremely stringent approval process, an approval process that exceeds requirements of all but a few commercial sectors.

The goal Kelso had in its formative stage is now reality thanks to the AAR approval and a new vision is required that emphasizes the commercialization of Kelso's JS SRV technology throughout the Rail Industry:

Kelso's new vision is to be first and foremost a "Safety Enterprise" and not simply a Valve Supplier. It will fulfill this vision through research, development and acquisitions into safety technologies. Furthermore, Kelso will effectively market its JS SRV valve to the Rail Industry domestically and throughout the world, as well as extend the reach of its technology to other industries.

In as much as Kelso's JS SRV technology offers significant safety improvements as well as economic benefits to the rail industry, synergy exists to benefit both the Rail Industry and the security of the general public. Kelso will seek, in the months to come, to conclude JS SRV Replacement Contracts with rail fleet operators and leasing entities. Kelso will further initiate discussions with the Insurance Industry in the interest of lower premiums on rolling stock using this new technology approved by the AAR. And, not to limit the technology's applicability, Kelso will advance its development and seek approval of other valve sizes required by the Rail Industry.

Kelso's JS75 SRV technology is patented in the USA and Australia under 15-year protection. It is patent protected in 18 other countries in Asia (China, Hong Kong, India, Indonesia, Japan, Korea and Vietnam), Europe (Austria, Belgium, France, Germany, Italy, Netherlands, Russia, Spain, and the U.K.), South America (Brazil) and Mexico. Over the next couple of years, Kelso will identify and conclude distribution and agency agreements in these markets and thereafter initiate commercial activities. By extending our technology overseas, we will be extending the safety benefits beyond NAFTA, our primary geographic market.

Manufacturing will be done in North America in order to support anticipated demand in both our domestic and overseas markets. Kelso will also seek, where advisable, offshore manufacturing arrangements that may offer economic advantages to the company that may speed the process of adoption within those regional markets and or that may enhance Kelso's base technology. Kelso will also maintain vigilance against any infringement.

At the outset of my message, I alluded to the ability of the technology to address the needs of other industries and other applications. In the years to come, Kelso's development program will introduce variations of the current JS SRV technology in the form of products suitable for the trucking, stand-alone storage tanks, pipeline, marine transportation and aviation industries. The order of introduction will be based on ease of product modification in addressing the magnitude of need and the size of the sector in question.

Management and the commitment of a few individuals and investors have brought Kelso to this juncture and to the first summit of our success. I wish to thank each and every one of you and look forward to your sharing and supporting the vision I have for the company. In order to fulfill this vision, we will have to extend our team and will require financial investors and institutions to supplement our current investment resources. We will also require the same commitment and effort from the extended team, as has been shown by the Management team that brought us to this point and provides us today with our new vision.

Kelso shall be first and foremost a Safety Enterprise, a futuristic company that is here today with vision and leadership for the tomorrows to come.

Stephen L. Grossman, Chairman, President & CEO

The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this Release.