Clean Diesel's New Biodiesel Blend Reduces Particulates and NOx; Combination Can Reduce Petroleum Imports and Diesel Emissions.

Energy Editors/Business Editors

STAMFORD, Conn.--(BUSINESS WIRE)--Feb. 2, 2004

Clean Diesel Technologies Inc. (CDT) (EBB:CDTI)(AIM:CDT) (AIM:CDTS) announced today that results of testing of its new Cleaner Burning Biodiesel-fuel blend produced emissions reductions of 23 percent particulates and 5 percent NOx versus normal on-highway diesel fuel. Testing was conducted at Southwest Research Institute (SwRI) on a 1991 certified Cummins 8.3 liter medium-duty engine typical of school buses and delivery fleets.

The Cleaner Burning Biodiesel formulation is a blend of No. 1D and 20 percent biodiesel, along with CDT's patented Platinum Plus(R) fuel-borne catalyst (FBC). Biodiesel is an oxygenated fuel derived from renewable biological sources, such as soybeans. The No. 1D is commercial pipeline-grade kerosene widely used by municipalities. The addition of 20 percent biodiesel not only displaces 20 percent petroleum with a renewable energy source, but in conjunction with the Platinum Plus FBC, provides reductions in all regulated pollutants. "This blend actually beat a commercial ultra-low sulfur diesel fuel (ULSD) in reducing particulate matter (PM), NOx and CO, and was close to the performance of ULSD in reducing hydrocarbon emissions," according to James Valentine, president and COO of CDT.

In addition, the biodiesel enhances the lubricity of the No. 1D, and the No. 1D helps improve the cold-weather performance of the biodiesel. The FBC catalyzes combustion of the fuel in the engine leading to the high overall emission reductions.

Commenting from the National Biodiesel Conference in Palm Springs, Calif., Mr. Steve Howell, technical director of the National Biodiesel Board had the following comments: "This additive/fuel combination has been tested by a highly respected laboratory, and the results are very encouraging. In most biodiesel testing done so far, NOx is the only emission that biodiesel doesn't reduce. This is a positive development for the industry as we search for ways to reduce NOx emissions in addition to the many other benefits of biodiesel."

Earlier testing by CDT at SwRI had shown the ability of the Platinum Plus FBC and No. 1D to produce dramatic PM and NOx reductions, and these reductions were maintained or even improved by the addition of biodiesel to the fuel blend. Some reports have shown modest increases in NOx from the addition of biodiesel. In this new blend, with the FBC, No. 1D and 20 percent biodiesel, NOx is reduced below the baseline levels measured on normal No. 2D fuel.

"This broadens the range of applications for the FBC, making it a platform for clean-fuel solutions and an improvement to the performance of a wide range of after treatment devices," said Valentine. "Combined with a diesel-oxidation catalyst, Platinum Plus has already been verified by the EPA under the rigorous Environmental Technology Verification Program for up to 40-50 percent PM reduction. This performance should be improved even further with this new fuel blend."

Tested at SwRI in conjunction with a new catalyzed wire-mesh filter system (CWMF), the biodiesel blend reduced PM, HC and CO by over 75 percent with NOx reduced by 5 percent. Particulate emissions were actually half the emissions of a new 2004 engine. The FBC not only reduces soot but helps the CWMF self-clean by oxidizing soot even at low exhaust temperatures.

"We are extremely pleased with these results," said Valentine. "The growing interest from municipalities, power generators and fleets in biodiesel blends should provide a market for this new patent-pending fuel formulation. CDT envisions that the FBC will be added directly at the rack by fuel marketers, blending No. 1D and biodiesel with the FBC. All of these components are EPA registered and commercially available so fuel marketers and end users can obtain the benefits immediately."

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, the Platinum Plus Purifier System, and the ARIS(R) 2000 urea injection systems for selective catalytic reduction of NOx. Platinum Plus and ARIS are registered trademarks of Clean Diesel Technologies. For more information, visit CDT at www.cdti.com or contact the Company directly.

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.