Clean Diesel Technologies Completes $6.3 Million Fundraising.

STAMFORD, Conn. -- Clean Diesel Technologies Inc. (Clean Diesel) (OTCBB:CDTI)(AIM:CDT)(AIM:CDTS), a developer of chemical and technological solutions to reduce harmful engine emissions, has raised US $6.3 million (GBP 3.6 million) from several existing and new shareholders as well as directors and management. Clean Diesel will issue 8.89 million new shares at 40p (approximately $0.704) per share, for a total of 26.1 million shares outstanding.

Bernhard Steiner, CEO of Clean Diesel, commented: "We are delighted by the confidence that is being shown in Clean Diesel by investors and management alike. The funds will enable us to continue the commercialization and development of our core products. Furthermore, we intend to enhance our international sales and marketing programs and put our first-class technologies in front of key potential customers.

"Clean Diesel expects to benefit from recently announced U.S. and European emission initiatives including recently approved U.S. congressional bills that are expected to provide $1 billion over the next five years to clean up the existing 11 million U.S. diesel engines. In Europe, plans to implement clean air zones in major urban areas have been announced, with individual member states providing specific funding and incentives. The increased sources of grant funding should accelerate acceptance of our key technologies and enhance prospects for earlier revenue generation."

Directors and senior management have subscribed for a total of 380,100 new common shares ($268,000) including Derek Gray, non-executive chairman and director, for 71,000 shares; Bernhard Steiner, CEO and director, for 170,500 shares; James Valentine, president and director, for 14,200 shares; Charles Grinnell, general counsel and director, for 14,200 shares; and Jeremy Peter-Hoblyn, director, for 71,000 shares. In addition other senior management subscribed for 39,200 shares.

The 8.89 million of new common shares were placed by J.M. Finn & Co. Application will be made for the new common shares to be admitted to trading on AIM and dealings in the new shares are expected to commence on Nov. 11, 2005.

About Clean Diesel Technologies Inc.

Clean Diesel Technologies Inc. and its U.K. representative office, Clean Diesel International LLC, is a developer of chemical and 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 (FBC), 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 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.