KLS Kelso Technologies Inc.

Kelso (TSX VENTURE:KLS)(OTCQX:KEOSF) reports that it has incorporated a wholly
owned subsidiary company named Kelso Innovative Solutions Inc.("KIS") in the
State of Nevada. The new subsidiary will focus on engineering industrial designs
and distribution plans for our patented Kelso Klincher(TM) (KKS) manway
securement system for applications in the roadway trucking and trailer market.
KIS will be based in the Houston, Texas area.


New President

We are pleased to announce that KIS will be run by Mike Girard who will act as
the President. Mike has over 30 years of valuable business development
experience and key business relationships in the over-highway truck and trailer
market. He is very well known and respected in the trucking industry. Mike has
been a key member of Girard Equipment Inc., a respected supplier of equipment to
the trucking industry, for the past 30 years most recently as VP Sales, Southern
Region. He will report to Neil Gambow who will act as CEO for KIS.


Outlook

The establishment of KIS is another strategic step in the growth model of Kelso.
We have built a strong engineering and business position in railroad equipment
from which to create, develop and distribute innovative high performance
products that provide solutions for trucking customers in terms of improved
performance, safety, reliability, cost benefits and longevity.


Mr. Girard will focus on the relationships required to execute commercial
business plans for multi-million dollar sales of our unique KKS products to
customers inside the trucking industry. This business direction has been fueled
by several key trucking customers that have expressed keen interest to assess
and develop the value proposition that our KKS offers in roadway applications.
Our goal is create a "first to market" high performance KKS product strategy
that will deliver economic and qualitative benefits to all stakeholders in the
HAZMAT segment of the trucking industry.


We have been working on initial industrial designs, adoption issues and delivery
schedules for 2013 and 2014 with key truck tank car builders, owners and
shippers who transport hazardous commodities and non-hazardous commodities via
road. The KIS subsidiary formalizes our entry into the trucking industry and
allows us to pursue these multi- million dollar markets without affecting our
railroad business.


Our ultimate goal is to have our trucking version of the KKS become a "gold
standard" product on most HAZMAT and non-hazardous applications in trucking
transport. We are confident that the trucking market can add multi-million
dollar business to the overall benefit of the shareholders of Kelso
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
multi million dollar revenue opportunities exist and can be exploited in the
trucking industry; that Kelso can design and deliver reliable "best available
technology" KKS products for the trucking industry with proven economic and
qualitative advantages over our competition; that from the commercial sales of
our KKS products in the trucking industry Kelso can add successful multi-million
dollar business and that we can make deliveries in 2013. 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.

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