Omnitek Engineering Corporation Reports Record Revenues for 2008

Cites Strong Demand for Diesel Engine to Natural Gas Conversions

• Press Release
• Source: Omnitek Engineering Corp.
• On 7:30 am EST, Monday March 2, 2009

SAN MARCOS, Calif., March 2, 2009 (GLOBE NEWSWIRE) -- Omnitek Engineering Corporation (Pink Sheets:OMTK - News) today reported results for its fourth quarter and year ended December 31, 2008, with revenues increasing more than two-fold on a year-over-year basis due to strong demand for its diesel-to-natural gas conversion systems.

Related Quotes

Symbol	Price	Change
OMTK.PK	0.36	+0.01

{"s" : "omtk.pk","k" : "c10,l10,p20,t10","o" : "","j" : ""}

Net revenues for the fiscal fourth quarter were $686,504 compared with $338,771 a year earlier. For the same period, the company reported a net loss of $1,061,164, or $0.07 per share, compared with a net loss of $829,933, $0.05 per share, a year ago.

For the twelve months, revenues increased sharply to $3.36 million from $1.0 million for the same period a year earlier. The company reported a net loss for 2008 of $1.2 million, or $0.08 per share, compared with a net loss of $1.3 million, or $0.08 per share, a year ago. Results for 2008 included a non-cash charge of $1.2 million, or $0.08 per diluted share, related to the expensing of options and warrants and recorded in general and administrative expense.

Gross profit for twelve months ended December 31, 2008 increased sharply to $1.1 million from $242,510, due primarily to increased sales, improved operating efficiencies and reduced material costs. Gross profit for the twelve-month period as a percentage of sales was 32 percent compared with 24 percent in the same period a year ago.

"Results for 2008 reflect continued global demand for our technology, which converts high-polluting diesel powered engines to operate on natural gas," said Werner Funk, president and chief executive officer of Omnitek Engineering Corporation.

He noted that fourth quarter results were less robust than anticipated due to global economic conditions. "Despite the impact of current economic conditions, we anticipate continued year-over-year growth in 2009, with some potential for quarterly fluctuations as a result of the timing of customer orders," Funk said. He indicated that new marketing initiatives in Peru, Dubai, Turkey, the Caribbean and Malaysia are expected to result in significant contracts in 2009.

As previously announced, the company demonstrated its diesel-to-natural gas conversion technology at the Ag Expo, the world's largest annual agricultural exposition, held last month in Tulare, California. "The State of California is extremely committed and focused on reducing emissions from diesel powered irrigation systems. Our technology enables the agricultural community to drastically reduce pollution and operating expenses by converting diesel engines to operate on natural gas -- a readily available fuel that reduces CO2 emissions up to 30 percent compared with diesel powered irrigation pumps," Funk said. He indicated that the company is working with the California Air Resources Board and the Environmental Protection Agency to receive approval of its technology for agricultural applications.

About Omnitek Engineering Corporation

Omnitek Engineering, Corp. develops and sells new natural gas engines, as well as proprietary diesel-to-natural gas conversion systems -- providing global customers with innovative alternative energy and emissions control solutions that are sustainable, affordable and designed to combat global warming.

Some of the statements contained in this news release discuss future expectations, contain projections of results of operations or financial condition or state other "forward-looking" information. These statements are subject to known and unknown risks, uncertainties, and other factors that could cause the actual results to differ materially from those contemplated by the statements. The forward-looking information is based on various factors and is derived using numerous assumptions. Important factors that may cause actual results to differ from projections include, among many others, the ability of the Company to raise sufficient capital to meet operating requirements, completion of R&D and successful commercialization of products/services, patent completion, prosecution and defense against well-capitalized competitors. These are serious risks and there is no assurance that our forward-looking statements will occur or prove to be accurate. Words such as "anticipates," "expects," "intends," "plans," "believes," "seeks," "estimates," and variations of such words and similar expressions are intended to identify such forward-looking statements. Unless required by law, the Company undertakes no obligation to update publicly any forward-looking statements, whether as a result of new information, future events or otherwise.

                       OMNITEK ENGINEERING CORP.
                   Consolidated Statements of Income

                     For the Three Months      For the Twelve Months
                             Ended                     Ended
                     Dec. 31,     Dec. 31,     Dec. 31,     Dec. 31,
                   -----------  -----------  -----------  -----------
                      2008         2007         2008         2007
                   -----------  -----------  -----------  -----------
 REVENUES          $   686,504  $   338,771  $ 3,359,953  $ 1,017,217
 COST OF GOODS
  SOLD                 570,643      313,068    2,297,680      774,707
                   -----------  -----------  -----------  -----------
 GROSS MARGIN          115,861       25,703    1,062,273      242,510

 OPERATING EXPENSES

   General and
    administrative     976,434    1,133,732    1,797,347    1,414,580
   Bad debt expense      4,018        1,706        9,209       (4,943)
   Research and
    development
    expense            112,346       18,108      293,167      356,316
   Depreciation and
    amortization
    expense             26,947       34,248      130,107      136,676
                   -----------  -----------  -----------  -----------
     Total
      Operating
      Expenses       1,119,744    1,187,795    2,229,830    1,902,629
                   -----------  -----------  -----------  -----------

 INCOME (LOSS)
  FROM OPERATIONS   (1,003,883)  (1,162,092)  (1,167,557)  (1,660,119)
                   -----------  -----------  -----------  -----------

 OTHER INCOME
  (EXPENSE)

   Interest expense         --       (1,266)        (160)      (4,747)
   Interest income       1,719        1,716        6,846        5,347
                   -----------  -----------  -----------  -----------

 TOTAL OTHER
  INCOME (EXPENSE)       1,719          450        6,686          600
                   -----------  -----------  -----------  -----------
 NET INCOME (LOSS)
  BEFORE INCOME
  TAXES             (1,002,164)  (1,161,642)  (1,160,871)  (1,659,519)
 INCOME TAX EXPENSE
  (BENEFIT)            (59,030)     331,709      (59,830)     330,947
                   -----------  -----------  -----------  -----------

 NET INCOME (LOSS) $(1,061,194) $  (829,933) $(1,220,701) $(1,328,572)
                   ===========  ===========  ===========  ===========

 BASIC INCOME
  (LOSS) PER
  SHARE            $     (0.07) $     (0.05) $     (0.08) $     (0.08)
                   ===========  ===========  ===========  ===========

 WEIGHTED AVERAGE
  NUMBER OF COMMON
  SHARES
  OUTSTANDING       16,006,398   15,736,152   16,006,398   15,736,152
                   ===========  ===========  ===========  ===========



                       OMNITEK ENGINEERING CORP.
                      Consolidated Balance Sheet

                                           December 31,   December 31,
                                              2008           2007
                                          ------------   ------------
 CURRENT ASSETS
   Cash                                   $     46,471   $     23,442
   Accounts receivable                          32,602         71,868
   Inventory                                 1,439,092      1,166,907
   Deposits                                    210,215         70,130
   Deferred tax asset                          403,324        462,354
                                          ------------   ------------

     Total Current Assets                    2,131,704      1,794,701
                                          ------------   ------------

 FIXED ASSETS, net                              23,666         33,127
                                          ------------   ------------

 OTHER ASSETS
   Prepaid expense                               2,500          3,250
   Intellectual property, net                  242,842        354,789
                                          ------------   ------------

     Total Current Assets                      245,342        358,039
                                          ------------   ------------

     TOTAL ASSETS                         $  2,400,712   $  2,185,867
                                          ============   ============


       LIABILITIES AND STOCKHOLDERS' EQUITY
       ------------------------------------

 CURRENT LIABILITIES
   Accounts payable and accrued expenses  $    220,952   $     76,070
   Accrued expenses-related parties            298,984        241,690
   Customer deposits                            95,362         79,603
   Shareholder loans                                --         15,000
                                          ------------   ------------

     Total Current Liabilities                 615,298        412,363
                                          ------------   ------------
 STOCKHOLDERS' EQUITY
   Common stock, 25,000,000 shares
    authorized no par value 16,006,398
    shares issued and outstanding            2,320,476      2,320,476
   Additional paid-in capital                2,933,948      1,701,337
   Accumulated deficit                      (3,469,010)    (2,248,309)
                                          ------------   ------------

     Total Stockholders' Equity              1,785,414      1,773,504
                                          ------------   ------------

     TOTAL LIABILITIES AND STOCKHOLDERS'
      EQUITY                              $  2,400,712   $  2,185,867
                                          ============   ============

Maier & Company, Inc.
Gary S. Maier
(310) 442-9852