Pegaco Bus Acquires 50% Omnitek Peru as Peru Market Grows

| USA, San Marcos CA and Peru, Lima

Pegaco Bus Company of Peru, a Lima-based provider of bus services and a seller of compressed natural gas (CNG) powered buses, has acquired a 50% ownership position of Omnitek Peru S.A.C., a joint venture that parent company Omnitek Engineering Corporation set up with local partners in August 2009 to offer conversion services for diesel engines to operate on natural gas, as well as provide services to re-power diesel trucks and buses utilizing Omnitek’s natural gas engines. In addition, Pegaco has received a new order for conversion kits and related components to meet increased demand in Peru.

Omnitek Engineering Corp. develops and sells new natural gas engines, as well as proprietary diesel-to-natural gas conversion systems — providing global customers with alternative energy and emissions control solutions. The company will retain its current 20 percent ownership position in the joint venture conversion operation in Peru and realize 100 percent of the conversion kit sales to this entity.

“Peru, with an excellent natural gas infrastructure and a commitment to reducing carbon emissions, continues to represent an important growth market for our company.  Peruvian bank loans are readily available to fleet operators for conversions and diesel engine re-powering is receiving strong interest from fleet operators – especially with a less than a one year return on investment,” said Werner Funk, president and chief executive officer of Omnitek Engineering Corporation.

“The additional liquidity provided by Pegaco’s investment will enable the joint venture to take advantage of an incredibly large market for truck and bus conversions in Peru — a market that industry sources estimate will reach at least 20,000 bus conversions and 50,000 truck conversions in the next few years,” said Javier Ojeda, general manager of Omnitek Peru.

“Omnitek Engineering’s technology offers an economical solution to Peruvian bus operators who cannot afford to purchase new natural gas buses.  We look forward to working with Omnitek Peru and accelerating the adaption of natural gas,” said Jorge Luis Maldonado, chief executive officer of Pegaco.

In September 2009, Omnitek Peru made history by driving a natural gas powered heavy-duty commercial truck to a record altitude of 4,814 meters (15,800 feet) over the Ticlio Pass high in the Peruvian Andes, the highest road in the world.

Pegaco Bus is said to be one of the fastest growing companies in Peru.  It is a the exclusive dealer of Kinglong of China buses, the second largest bus manufacturer in China.

(This article compiled using information from an Omnitek Engineering Corporation press release)

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