Clean Diesel Technologies Reduces Emissions for Skanska on New York City's Largest Public Works Project.

Skanska deploys Clean Diesel's patented Purifier[TM] System based on Catalyzed Wire Mesh Filter technology to reduce diesel particulate matter by 76%

STAMFORD, Conn. -- Clean Diesel Technologies, Inc. (NASDAQ:CDTI; XETRA:CDIA; AIM:CDT), the cleantech emissions reduction company, and Skanska (STO:SKAB), one of the world's leading construction groups, today announced the successful deployment of Clean Diesel's Purifier System based on its patented catalyzed wire mesh filter (CWMF) technology on Skanska cranes being used for the construction of a new water filtration facility in Croton, NY, a source of drinking water for Manhattan and the Bronx. The $1.3-billion project is the largest single construction contract in New York City history.

Clean Diesel CEO Bernhard Steiner says, "We are proud to be part of a project of such unprecedented scale - and pleased to provide an effective solution to Skanska. Our emissions reduction technology will enable Skanska to undertake this major construction effort with a dramatically reduced impact on the natural environment."

In a May 2007 press release, Skanska announced it had "landed its largest order in the US to date" -- a $1.3-billion contract from the New York City Department of Environmental Protection (NYCDEP) for construction of a 377,000 sq.-ft. concrete water treatment facility and installation of machinery, piping and control equipment.

The NYCDEP requires all diesel-powered equipment which will be utilized on-site to use ultra-low sulfur fuel and to install Best Available Control Technology (BACT) to reduce particulate matter (PM) emissions.

Skanska is currently operating numerous cranes on-site which, because of the nature of the work, do not regularly produce a sufficiently high exhaust gas temperature to sustain the use of a passive diesel particulate filter (DPF). Conventional diesel particulate filter systems deliver inadequate total performance for this type of application and are high maintenance. Active-regeneration DPF's require the shut down of the crane engines to accomplish the regeneration. This presents a safety risk to personnel working under and in close proximity to suspended loads. Skanska, with the approval of the client, has successfully deployed the Clean Diesel Purifier CWMF System, since there is no need to shut down the cranes to accomplish the regeneration with this system. It has been verified by the U.S. Environmental Protection Agency (EPA) to reduce PM by up to 76%, nitrogen oxides (NOx) up to 9%, carbon monoxide up to 66% and hydrocarbons up to 89%.

Skanska Vice President Ali Catik says, "As a global leader in construction and development we take our responsibility to the environment seriously. This is why after discussions with the client; we elected to pursue the highest-rated EPA solution for this challenging low-temperature emission control application. Clean Diesel's technologies are world-class sustainability solutions that help us reduce the environmental impact of large-scale construction projects. When the Croton Water Filtration Plant is completed it will enable millions of New Yorkers to enjoy clean, purified drinking water."

"This emissions reduction implementation is groundbreaking within the industry, as it extends the proven performance of the Purifier CWMF System to construction crane applications", added Dr. Steiner.

About Clean Diesel Technologies

Clean Diesel Technologies (NASDAQ: CDTI) is a cleantech company providing sustainable solutions to reduce emissions, increase energy efficiency and lower the carbon intensity of on- and off-road engine applications. Clean Diesel's patented technologies and products allow manufacturers and operators to comply with increasingly strict regulatory emissions and air quality standards, while also improving fuel economy and power. The Company's solutions, which are in commercial use worldwide, significantly reduce emissions formed by the combustion of fossil fuels and biofuels, including particulate matter (PM), nitrogen oxides (NOx), carbon monoxide and hydrocarbons. Clean Diesel solutions also reduce carbon dioxide (CO2) emissions, a key greenhouse gas associated with global climate change.

Clean Diesel develops and manages intellectual property from original concept to full-scale commercial deployment. Its offerings include ARIS([R]) Selective Catalytic Reduction (SCR); the patented combination of SCR and Exhaust Gas Recirculation; hydrocarbon injection for emissions control applications; Platinum Plus[R] Fuel-Borne Catalyst (FBC); the Purifier[TM] family of particulate filter systems; and its Wire Mesh Filter particulate filter technologies. The Company was founded in 1995 and is headquartered in Stamford, Connecticut. A wholly owned subsidiary, Clean Diesel International, LLC, is based in London, England. For more information, please visit www.cdti.com.

About Skanska

Skanska USA Civil is focused on the construction of facilities for water and wastewater treatment, power and traffic/mass transit infrastructure. The business unit has about 4,500 employees and operations in the eastern US, Colorado and California. Skanska USA Civil's revenues amounted to about USD 1.6 billion in 2007. In the United States, Skanska is a leading provider of comprehensive construction services and a developer of public-private partnerships.

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 U.S. 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.