Clean Diesel Technologies Receives Notice of Decision to Grant Key European Patent for Reducing Diesel Emissions.

Business Editors

STAMFORD, Conn.--(BUSINESS WIRE)--Oct. 5, 2000

Fuel-Borne Catalyst with Filter Seen As Low-Cost Alternative for

Diesel Emissions Control

Clean Diesel Technologies Inc. (EBB:CDTI) (CDT) Thursday announced that it had received notice from the European Patent Office of its decision to grant a fundamental patent covering CDT's platinum and cerium bimetallic fuel-borne catalyst (FBC) used to improve diesel particulate filter (DPF) performance.

This patent was previously granted in the United States as patent No. 6,003,303 in December, 1999. CDT is negotiating licenses for its Platinum Plus(R) FBC/DPF technology with several parties in the United States, Europe and Asia and has already signed letters of intent in Europe and Japan for marketing of the technology.

CDT's FBC is used in minute amounts in the fuel to catalytically improve in-cylinder combustion, resulting in reduced engine-out emissions and improved fuel economy. Soot containing the catalyst is then trapped in an exhaust gas particulate filter where the FBC catalytically promotes the low temperature oxidation of soot to CO2 and water vapor.

This helps clean, or regenerate, the particulate filter.

Unlike highly precatalyzed systems which are dipped in a platinum solution or two-stage platinum oxidizer/trap systems, the FBC/DPF combination can operate on current sulfur fuels as well as proposed ultra low-sulfur fuels.

This is due to the low platinum levels and high catalytic activity of the FBC system where the catalyst is in intimate contact with the soot versus soot lightly deposited on the surface of other heavily precatalyzed filter systems. Lower precious metal loadings means the CDT system is less prone to form sulfates from sulfur in the fuel; and it is much less costly.

It even offers the prospect for use with low cost, disposable filters changed at regular maintenance intervals over the life of the vehicle.

Using the FBC system will typically require 3-5 grams per year of platinum added to the fuel versus highly precatalyzed systems loaded with 30-40 grams of platinum at the start. As a result, the upfront cost will be significantly less, an economic benefit in retrofitting older engines and for new heavy-duty engines.

Normally, for example, it would require investing in a $10,000 heavily precatalyzed filter system on a $17,000 engine. The FBC/DPF system is expected to be in the $3,000-4,000 range with the FBC adding 5-10(cent) per gallon to the fuel cost. This will be offset in part or in whole by fuel economy improvement from better in-cylinder combustion.

Fleets typically see a 3-6% fuel economy improvement when using FBC-treated fuel.

Performance Successfully Vehicle-Tested

The performance of the FBC/DPF system has been demonstrated in numerous engine and vehicle tests as well as in more than 400 commercial vehicles and off-road equipment in Europe and Asia. Particulate reductions of 80-95% have been demonstrated on fiber-wound filters, silicon carbide filters and Cordierite filter systems, either uncatalyzed or lightly precatalyzed.

Used with engine changes such as exhaust gas recirculation (EGR), NOx reductions of 45% and PM reductions of 95% have been recorded on both medium and heavy-duty engines. Side-by-side comparisons on a 400hp, 1998 heavy-duty diesel engine showed the best performance for the Platinum Plus(R) FBC/DPF system.

            Side-by-Side Comparison, 1998 Heavy-Duty Engine
             CDT's FBC/DPF   Pre-Catalyzed DPF   Oxidizer/DPF System
% Particulate
 Reduction         96%                   82%             86%
Fuel Sulfur
 Content         350ppm                 350ppm         54ppm

In the United States, the California Air Resources Board has approved a plan for retrofitting more than 1 million diesel engines with filter systems, including FBC/DPF systems, over the next 2-8 years; and the U.S. EPA recently announced a voluntary retrofit program to promote the use of diesel retrofit control technologies on more than 10,000 engines in the next 12-18 months.

The Platinum Plus FBC is registered with the U.S. EPA for use in on-highway fuels and it can be added to the fuel at any point in the distribution channel. The FBC is compatible with most major filter systems including those manufactured by Corning, 3M, Engelhard, Ibiden, Clean Air Systems and Oberland.

In Europe, several light-duty diesel manufacturers are introducing filter systems on high-end diesel powered passenger cars, and regulations are seen as forcing filters in the 2004-2005 timeframe for new heavy-duty vehicles. Retrofit filter programs in Europe are expanding in mining, construction and on-highway applications.

Fuel borne catalysts are being used in both new and retrofit applications to improve filter performance. The CDT system offers advantages in using much lower metal concentrations (4-8ppm) versus 30-50ppm for other iron or cerium fuel borne catalysts; which results in less ash accumulation in the filter, lower backpressure and longer filter life for the CDT system.

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 system 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.