Catalyzed Particulate Filter System Using Clean Diesel Technologies' Platinum/Cerium Fuel Additive Approved by MSHA for Use in Underground Mines.

Business Editors

STAMFORD, Conn.--(BUSINESS WIRE)--Jan. 7, 2003

Provides More Than 85 Percent Reduction in Diesel Particulates

Clean Diesel Technologies Inc. (CDT)(EBB:CDTI)(AIM:CDT/CDTS) today announced that the U.S. Mining Safety Health Administration (MSHA) had approved the use of CDT's Platinum Plus(R) fuel borne catalyst (FBC) as part of a diesel particulate filter system supplied by New Mexico-based CleanAIR Systems Inc. for use in underground mines.

The PERMIT(TM) FBC Filter system uses a catalyzed ceramic filter and CDT's patented FBC to reduce toxic diesel particulates by more than 85 percent. According to Michael Roach, president of CleanAIR Systems, "Acceptance by MSHA is based on the ability of this unique combination to provide significant diesel particulate reduction while causing no increase in nitrogen dioxide (NO2) emissions."

Testing was conducted by MSHA in a laboratory reference engine and on a unit operating in a mine. The companies will market to U.S. mines through the CleanAIR Systems distributor network and discussions are underway for distribution to overseas mining and tunneling sectors.

Roach added, "Other systems using high levels of precious metals for regeneration cause significant increases in NO2 which is a strong lung irritant and especially problematic in underground mines. Still other filter systems require the filter to be removed for cleaning each night or plugged in and electrically regenerated overnight. These systems are more expensive and time consuming than the PERMIT system used with Platinum Plus."

CleanAIR Systems designed and tested a precious metal catalyst coating for the filter that does not increase NO2 emissions, one of the major drawbacks to using traditional precious metal catalyst coatings. The precious metal catalyst also greatly decreases emissions of poisonous carbon monoxide and toxic hydrocarbons and works with the FBC to promote safe filter regeneration or self cleaning of the filter under normal operating conditions.

The PERMIT system uses a specially formulated precious metal coating designed to take advantage of CDT's platinum/cerium FBC. Earlier this summer MSHA identified that other precious metal coated systems caused significant increases in NO2 emissions and their continued use was prohibited by MSHA in July of this year.

James Valentine, president and COO of CDT, stated that the CDT Platinum Plus FBC has undergone extensive laboratory and field tests in the United States and Europe and is registered with the U.S. Environmental Protection Agency (EPA) for use in on-highway fuels.

"The FBC promotes better in-cylinder combustion by introducing minute amounts of platinum and cerium (Pt-Ce) catalysts into the engine leading to reduced soot loading to the filter," Valentine said. "It also lowers the oxidation temperature of soot trapped in the filter allowing passive regeneration or self cleaning under normal operating conditions.

"The Platinum Plus FBC has been used in over 800 units worldwide with over 15 million miles of trouble-free service. The FBC is completely soluble and stable in fuel and is easily blended in bulk fuel or on site using automatic dosing equipment. Testing has shown no toxic or secondary emissions resulting from the use of the FBC."

A separate report from the NIOSH (National Institute for Occupational Safety and Health) recently concluded that a catalyzed diesel particulate filter (CDPF) and FBC was the best system for mines.

According to the report, the use of a CDPF in combination with an FBC if needed for regeneration seems to be the most effective aftertreatment technology for reductions of diesel particulate matter (DPM) and gaseous emissions from the diesel exhaust. The report further noted that some FBC's, notably the Pt-Ce FBC, are effective at extremely low dosing levels.

Besides mining applications, CleanAIR Systems and CDT have recently supplied the combined FBC and aftertreatment system to refuse trucks, beverage delivery trucks, and stationary engines. CDT and CleanAIR are also conducting field and engine dynamometer testing in support of verification under the California Diesel Risk Reduction Program.

Recent tests of an on-highway diesel engine resulted in more than 90 percent reduction in DPM and no increase in NO2 when the PERMIT(TM) FBC Filter and Platinum Plus FBC were used with ARCO's ECD-1 ultra-low sulfur diesel on a 1998 heavy duty diesel engine.

About CleanAIR Systems Inc.

CleanAIR Systems products reduce emissions from vehicles and equipment all over the world. Established in 1993, the company designs and produces emission control products for all diesel, gasoline, natural gas and propane engines. Major product lines include the PERMIT(TM) diesel particulate filter and ASSURE(TM) diesel oxidation catalyst.

About Clean Diesel Technologies Inc.

Clean Diesel Technologies is a specialty chemical company with patented products that reduce emissions from diesel engines while simultaneously improving fuel economy and power. Products include Platinum Plus(R) fuel catalysts and the ARIS(R) 2000 urea injection systems for selective catalytic reduction of NOx.

Certain statements in this news release constitute "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements involve known or unknown risks, including those detailed in the company's filings with the Securities and Exchange Commission, uncertainties and other factors which may cause the actual results, performance or achievements of the company, or industry results, to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date hereof.

Note to Editors: Platinum Plus and ARIS are registered trademarks of Clean Diesel Technologies Inc.

PERMIT(TM) and ASSURE(TM) are registered trademarks of CleanAIR Systems Inc.