Clean Diesel Approves Increase in Authorized Capital and Elects David F. Merrion to Its Board.

LONDON -- Clean Diesel Technologies, Inc. ("Clean Diesel" or "The Company") (EBB: CDTI & AIM: CDT/CDTS & XETRA: CDI), a developer of technological solutions to reduce harmful engine emissions, announces that at the Annual General Meeting held on Thursday, June 15, 2006 all the resolutions proposed were duly passed.

Resolutions included increasing authorized capital from 30 million to 45 million shares and the appointment of David F. Merrion as a non-executive Director. The increase in authorized capital allows Clean Diesel the flexibility to improve its balance sheet and to consider potential technology acquisitions.

David is currently the Chairman of Clean Diesel's Technical Advisory Board. He has extensive experience in the diesel industry as the former Executive VP Engineering for Detroit Diesel Corporation, a Daimler Chrysler subsidiary, and continues as a consultant to Detroit Diesel Corporation as well as other companies and law firms. He is the Chairman of David F. Merrion, LLC, Chairman of Green Vision Technology and on the Board of Directors of Catalytica Energy Systems, Inc. David is an SAE Fellow and member of ASME and has a number of publications to his name. He holds a patent on a diesel electric hybrid power train and is a graduate of both General Motors Institute and MIT.

Commenting on his appointment David says: "I have seen Clean Diesel grow from strength to strength and am delighted to step up on to the Board at this exciting time. As the world opens its eyes to clean technologies, Clean Diesel is truly a pioneer in adopting environmentally sound engine technologies that comply with the latest anti-pollution regulations. I look forward to working with Clean Diesel as the Company grows."

Derek Gray, non-executive Chairman of Clean Diesel, said: "David will be a very strong addition due to his background within the industry and excellent connections within our related industries. David has supported us as chairman of our Technical Advisory Board and will further assist us with our growth plans going forward. We are delighted to welcome David to the Board."

There are no further disclosures to be made regarding this appointment under Schedule 2 paragraph (g) of the AIM rules.

About Clean Diesel Technologies, Inc.

Clean Diesel Technologies, Inc. and its UK representative office, Clean Diesel International LLC, is a developer of technological solutions to reduce harmful engine emissions. Clean Diesel Technologies has patented products that reduce emissions from combustion engines while simultaneously improving fuel economy and power. Products include Platinum Plus(R) fuel borne catalysts, the Platinum Plus Purifier System, a catalyzed wire mesh filter 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, Inc. 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.