Clean Diesel Technologies Applies ARIS Mobile Nitrogen Oxide Reduction System to Medium Duty Delivery Truck; System Already in Operation on More Than 100 Stationary Diesels.

Business Editors

STAMFORD, Conn.--(BUSINESS WIRE)--Sept. 25, 2002

Clean Diesel Technologies Inc. (EBB:CDTI)(AIM:CDT/CDTS)(CDT) today announced the first application of its mobile ARIS(R) nitrogen oxide (NOx) reduction system to a commercial medium duty 170 hp Isuzu diesel engine equipped delivery van.

Designed in conjunction with Connecticut-based Combustion Component Associates Inc. (CCA), the mobile ARIS unit includes CDT's patented computer controlled reagent injector and proprietary electronic control unit (ECU) and software to control the injector.

Used with an integrated semi submersible pump-in-tank unit designed and fabricated by CCA and a selective catalytic reduction (SCR) catalyst supplied by Iselin, N.J.-based Engelhard Corp., the system has been designed to achieve 70 percent NOx reduction over typical driving cycles.

The ARIS NOx reduction system is a patented urea SCR technology that injects non-toxic urea-based solution into the exhaust gas of a diesel engine upstream of the SCR catalyst. When mixed with nitrogen oxides in the exhaust, urea reacts across the catalyst to convert NOx to elemental nitrogen and water vapor.

The ARIS ECU is programmed to control the ARIS urea injector based on engine operating conditions and precisely injects the amount of urea required to react with NOx in the exhaust even as engine load and speed change.

More than a dozen ARIS injection systems have been supplied to engine manufacturers, government agencies, catalyst companies and exhaust system manufacturers to investigate the technology for mobile applications and there are more than 100 commercial ARIS NOx reduction systems operating on stationary power generation diesels in the United States and Japan through licenses with the RJM Corp. for the Americas and Mitsui & Co. Ltd. for Japan.

"The beauty of this demonstration is that the vehicle serves as an emissions test van in CCA's Combustion Testing Division and is fully equipped with NOx monitoring equipment, so we can record real-time NOx emissions both before and after the ARIS system," said James M. Valentine, president of CDT.

"The data and durability experience should help support application for verification under the EPA's voluntary retrofit program. Areas such as Houston, Sacramento, Los Angeles and Atlanta are looking for cost-effective retrofit NOx reduction systems."

Once in commercial production CDT/CCA estimate the cost to retrofit at less than $10,000 per vehicle and potentially less than $3,000 if installed at the factory on new vehicles. The system is designed to be applicable to on-highway, off-road and portable diesel engines.

CDT and CCA are exploring potential third-party alliances to address the retrofit mobile market in the United States and CDT is in discussions with several parties about licenses to address the new vehicle market in the United States, Europe and Asia.

While European heavy-duty engine manufacturers have generally decided on urea SCR to meet emissions standards by 2005, the U.S. manufacturers are still evaluating options including higher cost NOx adsorbers which use a platinum-based catalyst and hydrocarbon reagent to reduce NOx.

In either case, the ARIS injector has been used on both urea SCR and NOx adsorber systems. CDT and CCA are also exploring the application of ARIS injection systems to boilers, process heaters and potentially gas turbines.

About Combustion Components Associates Inc.

Combustion Components Associates, founded in 1980, provides comprehensive engineering, testing and hardware to the power and transportation industries for the efficient combustion of fuel and reduction of air pollution.

The company utilizes the latest technology in computer modeling and laboratory test equipment in the development and application of its technologies. Its products and services are utilized by major utility generators and numerous Fortune 500 companies.

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.