5.31.2006 ET

(CSRwire) CALGARY- Imperial Oil Limited, Canada's largest producer and marketer of fuel, announced today that it is now producing ultra-low sulphur diesel at its Dartmouth, Sarnia, Nanticoke and Strathcona refineries.

About $500 million, two years of construction, and the efforts of some 5,000 people have enabled Imperial Oil to reduce the sulphur content of its diesel fuel by 97 percent, to 15 parts per million(ppm), in accordance with government regulations. In July 2001, the Canadian government called for sulphur levels in diesel to be reduced to an average of 15 ppm by June 1, 2006.

"We are very pleased to now be producing low-sulphur diesel across the country," said Gilles Courtemanche, Vice-President, Refining and Supply at Imperial Oil. "Sulphur reduction is the latest step in the continuous improvement of fuel quality in Canada and the introduction of low-sulphur diesel will mean fewer emissions from the tailpipe and cleaner air for all of us."

The Honourable Rona Ambrose, Canada's Minister of the Environment, expressed congratulations to Imperial Oil on the company's remarkable achievement noting this effort is leading the way in showing how Canadian competitiveness and ingenuity can contribute to cleaner air and a sustainable economy.

The introduction of ultra-low sulphur diesel will have a significant impact on emissions from Canada's trucking industry. Regulations starting with the 2007 model year will reduce allowable emissions of nitrogen oxides, volatile organic compounds and particulate matter by 95, 89 and 90 percent, respectively.

"The move to ultra-low sulphur diesel is yet another investment the trucking industry is making to help clean Canada's air," said David Bradley, CEO of the Canadian Trucking Alliance. "This fuel will enable vehicle engines being introduced this fall to function at maximum efficiency and to operate virtually smog-free."

Ersilia Serifini, Executive Director of the Clean Air Foundation commends Imperial Oil on meeting this milestone. "We applaud every step taken that further contributes to cleaner air and cleaner communities across Canada. As a partner with Imperial Oil in the Car Heaven program - an initiative to encourage Canadians to get their older, high-polluting cars off the road permanently - we're pleased to see them take this step."

Imperial Oil has spent more than $1.2 billion to reduce the sulphur content of its gasoline and diesel. In 2003, the company completed a $650-million project that reduced sulphur levels in gasoline. These two initiatives will reduce smog-causing nitrogen oxides and particulate-matter emissions from new vehicles by almost 90 percent.

Imperial Oil is one of Canada's largest integrated oil companies and its largest refiner and marketer of petroleum products. Imperial Oil has four refineries in Canada: Dartmouth, NS; Nanticoke, ON; Sarnia, ON; and Strathcona, AB.

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