KLS Kelso Technologies Inc.

Kelso (TSX VENTURE:KLS)(OTCQX:KEOSF) reports that the high performance
attributes of a new extension of our external pressure relief valve (EPRV)
product line, the JS75XL, has been successfully verified by an independent
engineering test lab in Columbus, Ohio as required by the railroad industry. 


The JS75XL is one of a number of new high performance EPRV products that Kelso
is creating to distinguish the enhanced performance capacity of our EPRV
products above all other competitive products. The next product in this series,
the JS75XH, will be independently tested in July 2012 and is designed to meet
new performance standards in development by regulators.


Test Results

The JS75XL was designed to address a new industry requirement being implemented
by the Association of American Railroads (AAR), tank car owners and shippers of
hazardous and non-hazardous materials. The design goals are to have an external
pressure relief valve that flows at a much higher rate than current valves at a
pressure relief setting of 75 PSI that is suitable for both retrofit and new
tank car application and, most importantly, require no changes to current
mounting configuration. Tests conducted by the independent lab on the JS75XL
verified that the performance of the JS75XL will allow tank car owners and
shippers to meet the new regulation expected to be announced shortly. Management
believes that this test clearly establishes the new external JS75XL as the "best
available technology" in the market today for its intended HAZMAT and non-HAZMAT
applications.


New Regulations

The AAR is developing new guidelines and specifications for pressure relief
valves that recognize the changing environments in which railroad tank cars
operate. Kelso is an active member on the committees involved in finding
innovative solutions to establish improved technology solutions for pressure
relief management. The first significant regulation referenced above is due to
be announced shortly. The Company will announce the details of this regulation
change when it occurs.


Competition

Kelso believes that the JS75XL is a "first to market" product based on new
regulatory changes.


Competitive products may be forthcoming in the future but could be conditional
based on their designs and could have to undergo lengthy service trials and
applications to gain regulatory approvals from the AAR. This process could take
two to three years to achieve giving Kelso a significant competitive advantage. 


Kelso also holds patent rights to the constant-force spring valve design. Any
infringements on our patents would be defended vigorously.


Outlook

Our experienced executive management team has focused on the business
relationships required to execute commercial business plans for multi-million
dollar sales of our unique EPRV products. Industry skepticism regarding Kelso's
business capabilities and EPRV has diminished considerably. The railroad
industry appears eager to assess and validate the value proposition that our
products offer. Our new JS75XL represents our "first to market" high performance
product strategy that undeniably benefits all stakeholders in the HAZMAT
industry.


OEM and retrofit customers have recently confirmed by audit our ability to
produce our EPRV products at the capacity rates that they require. We are now
working on adoption and delivery schedules for 2012 and 2013 with key tank car
builders, owners and shippers who transport hazardous commodities such as crude
oil, ethanol, petrochemicals and other hazardous and non-hazardous chemicals.


To date Kelso has received new product orders and commitments for over
$4,000,000 for delivery in 2012. We anticipate consistent business growth due,
in part, to our new JS75XL and the ability to produce the large quantities of
our entire EPRV line as required by OEM customers. This is being fueled by
regulatory developments and customer confidence gained through independent
verification that Kelso can deliver reliable "best available technology"
solutions with proven economic, reliability and qualitative advantages over our
competition.


Our main challenge to market penetration and business growth is that the
railroad industry is very cautious about new technologies and demands extensive
testing hence they are slow to adopt new technologies. Budgets and testing
requirements are time consuming, and contrary to profit goals. Therefore, in
many cases industrial designs have not changed in decades even though modern
environmental sensitivities and engineering problems haunt and perplex the
industry. This is the circumstance that fuels Kelso with an advantageous product
and business position from which to create, develop and distribute innovative
high performance products that provide solutions for customers in terms of
improved performance, reliability, cost benefits and longevity.


Our ultimate goal is to have our EPRV to become "gold standard" products on most
HAZMAT applications as well as non-hazardous applications. We are confident that
we can build a successful multi-million dollar business on behalf of the
shareholders of Kelso Technologies based on our patented technologies.


For a more complete business and financial profile of the Company, please view
the Company's website at www.kelsotech.com and public documents posted on
www.sedar.com.


On behalf of the Board of Directors,

James R. Bond, CEO and President

Legal Notice Regarding Forward Looking Statements: This news release contains
"forward-looking statements" within the meaning of applicable Canadian
securities legislation. Forward-looking statements are indicated expectations or
intentions. Forward-looking statements in this news release include that that
the JS75XL is a "first to market" product based on new regulatory changes; that
the independent test clearly establishes the new external JS75XL as the best
available technology in the market today for its HAZMAT application; that
revenue opportunities will improve with new customer confidence that Kelso can
deliver reliable "best available technology" solutions with proven economic and
qualitative advantages over our competition; that from the commercial sales of
our EPRV and KKS products Kelso can build a successful multi-million dollar
business on behalf of the shareholders of Kelso Technologies. The Company's
products involve detailed proprietary and engineering knowledge and specific
customer adoption criteria, hence factors that could cause actual results to be
materially different include that we may be unsuccessful in raising any
additional capital needs that may arise; we may not have sufficient capital to
develop, produce and deliver new orders; product development may face unexpected
delays; orders that are placed may be cancelled; product may not perform as well
as expected; markets may not develop as quickly as anticipated or at all; or
that the construction or other plans for plants run into permit, labor or other
problems. Further, we are reliant on certain key employees who may leave the
Company and we may be unable to protect or defend our intellectual property.
Investors are cautioned against placing undue reliance on forward-looking
statements. We assume no responsibility to update these forward looking
statements except to the extent required by law.

Kelso Technologies Inc. (TSXV:KLS)
Historical Stock Chart
From Jun 2024 to Jul 2024

Kelso Technologies Inc. (TSXV:KLS)
Historical Stock Chart
From Jul 2023 to Jul 2024