Clean Diesel Technologies Reports Biodiesel Emission Reductions of 9 Percent NOx and 51 Percent Particulates; Cleaner Burning Biodiesel with Platinum Plus.

STAMFORD, Conn. -- Clean Diesel Technologies Inc. (CDT) (OTCBB:CDTI) (AIM:CDT)(AIM:CDTS) announced today tests results showing CDT's Cleaner Burning Biodiesel(TM) fuel blends used with the Platinum Plus(R) fuel borne catalyst (FBC) and a lightly catalyzed diesel oxidation catalyst (DOC) produced emission reductions of 51 percent particulates (PM) and 9 percent NOx versus baseline emissions from standard No. 2D fuel. The testing of CDT's biodiesel fuel blends were completed at Southwest Research Institute (SwRI) in San Antonio.

"This combination represents a reduction of over 100 lbs. per year of regulated pollutants from a typical school bus and over 200 lbs. per year for a local delivery vehicle," said President and COO James Valentine. "In addition to the more than 50 percent reduction in toxic particulates, the most significant finding was the 9 percent reduction in NOx; typical biodiesel blends can increase NOx by two to four percent," Valentine added.

Testing was conducted over triplicate federal transient test cycles on a 1995 Navistar DT-466 engine typical of school bus, beverage and local delivery service fleets. In the first of two test sequences, a blend of 20 percent biodiesel was combined with commercial ultra-low sulfur diesel (ULSD) and the Platinum Plus FBC, and the engine was equipped with a lightly catalyzed DOC. Overall emission reductions were 66 percent HC, 63 percent CO, 9 percent NOx, 51 percent PM and 95 percent SOx. Reductions of over 60 percent were also found in the NO2 fraction of exhaust which is a strong lung irritant and can increase with traditional heavily catalyzed aftertreatment devices. CDT's approach uses a lightly catalyzed DOC which reduces cost and minimizes NO2 formation.

In a second test sequence, a blend of 20 percent biodiesel with commercial No. 1D kerosene fuel and the FBC provided emission reductions of four percent NOx and 35 percent PM when the fuel was used alone without any aftertreatment.

In areas where ULSD is not yet available, the option of making Cleaner Burning Biodiesel fuel blends using commercial No. 1D and the Platinum Plus FBC should be attractive to fuel marketers and end users. CDT will provide blending instructions and the Platinum Plus FBC to qualified fuel marketers interested in blending licenses. DOCs can be purchased from CDT or other established aftertreatment suppliers.

"These tests confirm our earlier SwRI test work on engines from Cummins and Detroit Diesel, which showed the ability of Cleaner Burning Biodiesel blends made with Platinum Plus FBC and No. 1D or ULSD to reduce NOx and PM emissions consistently. CDT recently received a patent on Cleaner Burning Biodiesel blends in the United Kingdom, and other U.S. and international patents are issued and pending," added Valentine.

About Clean Diesel Technologies Inc.

Clean Diesel Technologies Inc. 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, 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.