Clean Diesel Technologies Grants RJM Corp. Limited License for Demonstration of ARIS NOx Reduction Technology On Diesel Trucks.

Business Editors

STAMFORD, Conn.--(BUSINESS WIRE)--Sept. 28, 2000

Aimed At Major Vehicle Retrofit Programs Planned by

Texas, California State Agencies

Clean Diesel Technologies Inc. (EBB:CDTI) (CDT) Thursday announced that it has granted RJM Corp. of Norwalk, Conn. a limited license to demonstrate CDT's patented ARIS(TM) 2000 NOx reduction technology on two heavy-duty construction trucks in Houston.

CDT holds fundamental patents on a unique computer-controlled single fluid injection system that precisely injects a water-based urea solution into the engine exhaust where it reacts with NOx across a catalyst.

The state of Texas has proposed retrofitting as many as 60,000 diesel engines with NOx control technology as part of its plan to achieve attainment with federal ozone standards. Ozone is formed by the reaction of NOx and other air pollutants with sunlight and can lead to shortness of breath, especially in the young and elderly.

The city of Houston alone has 2,700 pieces of diesel-powered equipment with its contractors operating an estimated 5,500 additional engines.

Unlike ammonia-based systems, which raise handling and storage issues related to the hazardous nature of ammonia, urea is non-hazardous and readily decomposes into ammonia in the exhaust for reaction across the catalyst. This reaction converts NOx into harmless water vapor and elemental nitrogen.

In more than a dozen engine tests and two field trials with heavy-duty diesel engine manufacturers, CDT's ARIS system has already demonstrated NOx reductions of 70-85 percent in mobile transient and steady state tests. The ARIS system has demonstrated both performance and durability with a wide range of catalysts including those supplied by Johnson Matthey, Engelhard, Degussa and others.

The plans for Texas are similar in many respects to those for California where reductions in both NOx and particulate are being targeted. The California Energy Commission has expressed a desire to retrofit up to 10,000 vehicles a year with NOx control technology, while the California Air Resources Board recently proposed a program to control particulates from more than 1 million engines.

Diesel particulate filters and urea based SCR technologies can be used together to reduce NOx and PM by more than 85 percent.

The heart of the CDT system involves constantly circulating a urea solution through the injector to keep it cool and prevent urea solids from forming. The injector valve is electronically opened or closed based on signals from the engine fed to the ARIS computer module run by CDT's licensed proprietary software.

The ARIS injector does not require atomizing air or a separate cooling circuit, thus making its application simpler for vehicles and small engines.

Industry Trends Start to Favor Urea SCR

CDT believes that the industry has taken notice of urea SCR due to its proven ability to deliver high NOx reductions regardless of fuel sulfur content. The American Petroleum Institute recently testified to the U.S. EPA that urea SCR is a proven technology and has greater sulfur tolerance than other proposed NOx reduction technologies.

At an August DOE conference in San Diego, a representative from a major engine manufacturer stated that urea SCR is the only proven NOx reduction strategy, a point echoed by a representative of a major catalyst company at the recent diesel emission control workshop in Houston sponsored by the Texas Natural Resource Conservation Commission (TNRCC).

During the June SAE Conference in Paris, experts from Southwest Research Institute presented data showing that urea SCR combined with exhaust gas recirculation (EGR) and a particulate filter could already meet the emission limits proposed for 2007 by the EPA.

CDT holds U.S. patents and international patent applications on the combination of SCR with EGR as well as with specific particulate filter combinations. CDT also holds the U.S. patent on solid reagent systems, which some experts feel, will be ideal for light-duty diesel NOx control. European programs are looking at both liquid and solid reagent systems.

CDT is exploring licenses with several companies interested in the retrofit market and the need for systems in Texas and California could serve as the catalyst to prompt prospective licensees to step-up to the opportunity.

Some potential licensees or end-users may have concerns about urea reagent availability; but CDT is working with its former parent, Fuel Tech Inc. to establish nationwide distribution of the NOx OUT(R) SCR urea-based reagent. Treating all on-highway diesels in the United States with this technology would consume only about 1-2 percent of worldwide urea supply.

For more information on the ARIS technology or to inquire about license opportunities contact CDT.

About RJM Corp.

RJM is a privately held company providing innovative energy and emission control technologies to the utility and industrial markets. RJM is the exclusive licensee for CDT's ARIS technology as applied to stationary, marine and locomotive diesel engines in North, Central and South America.

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 fuel catalysts and the ARIS(TM) 2000 urea injection systems for selective catalytic reduction of NOx. Platinum Plus is a registered trademark of Clean Diesel Technologies Inc.

Certain statements in this news release constitute "forward-looking statement" within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statement 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.