--Demonstration Conversion Program for Buses Commences in Mexico--

SAN MARCOS, CA — October 22, 2012 — Omnitek Engineering Corporation OTCBB: OMTK)today announced it has shipped an initial order valued at approximately $100,000 to the company’s newly recapitalized Peruvian joint venture, representing the expected acceleration of diesel-to-natural gas conversions in the country and the anticipated opening of additional conversion centers in Peru.

As previously announced in August, Pegaco Bus, a leading dealer of CNG buses in Peru, acquired a 50 percent ownership position in Omnitek Peru, with Omnitek Engineering retaining its current 20 percent ownership position in the joint venture conversion operation and realizing 100 percent of the conversion kit sales to this entity.  The enhanced capital structure of the partnership is expected to support the rapidly increasing demand for diesel engine conversions in the region.

             “Peru, a region that is committed to capitalizing on record low natural gas prices and reduced emissions levels, continues to represent an important growth market for our company. Fleet and bus operators are attracted to our proven and reliable conversion technology, as well as a less than one year return on investment,” said Werner Funk, president and chief executive officer of Omnitek Engineering Corporation.

            Industry sources in Peru estimate that diesel-to-natural gas conversions will reach at least 20,000 bus conversions and 50,000 truck conversions in the next few years.

            Separately, Omnitek Engineering said that its partner in Juarez, Mexico has completed an initial conversion of a Mercedes bus with an OM906 diesel engine to natural gas under a demonstration project in cooperation with the local gas company.  The demonstration period is expected to conclude by year end, with initial results surpassing expectations with more than 40 percent fuel savings.

            The company added that its conversion kit development program for the Navistar DT466 and Mack E7 engines is completed and EPA certification testing is on track. 

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

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.

 #      #      #