Clean Diesel cites independent tests showing 45 percent boost in diesel oxidizer performance with Platinum Plus fuel catalyst.

STAMFORD, Conn.--(BUSINESS WIRE)--Oct. 18, 1996--Clean Diesel Technologies Inc. (NASDAQ:CDTI) on Friday announced that recent tests conducted by a leading U.S. independent testing facility showed that the company's proprietary Platinum Plus diesel fuel catalyst improved by nearly half the overall particulate reduction performance of a standard heavy-duty diesel oxidation catalyst.

Test results indicated a 26 percent reduction in particulates when the diesel oxidizer was used in conjunction with the platinum fuel catalyst (PFC), compared with an 18 percent reduction with the diesel oxidizer acting alone. Testing was conducted on a four-cycle heavy-duty diesel bus engine under the EPA's Federal Test Procedure.

Particulates from the combustion of diesel fuel have for some time been linked to a number of airborne health hazards; last year, bus lines serving major metropolitan areas were required to begin reducing particulate emissions from currently operating vehicles under the EPA's retrofit rebuild program. This year, the EPA proposed regulations regarding limits for particulate and nitrogen oxide (NOx) emissions from new diesel engines, to be enforced beginning in 2004. NOx emissions contribute in turn to higher ambient particulate levels and ground-level ozone formation.

Chief Operating Officer James Valentine commented, "These tests suggest that our PFC could play an important role in reducing diesel engine particulate emissions from existing vehicles, as well as help manufacturers meet new emission standards."

He said the company's PFC can be employed alone or in conjunction with an oxidation catalyst or particulate filter for progressively higher levels of particulate control -- as much as 95 percent when used with a filter.

"Designers of new engines refer to the 'NOx/particulate tradeoff,'" he said, "wherein one pollutant can typically be reduced through the design, but at the expense of an increase in the other. However, when used in conjunction with an oxidation catalyst or particulate filter, our PFC can allow designers to optimize engine performance to minimize NOx emissions, while at the same time controlling particulates using the PFC in concert with an oxidizer or filter."

In addition to reducing particulates, the tests showed, the combination of PFC and oxidation catalyst reduced NOx emissions by 4 percent, hydrocarbon emissions by 90 percent and carbon monoxide emissions by 62 percent. Smoke emissions were also reduced. The tests further indicated that the PFC improved both engine power and fuel economy.

"These results confirm tests done in Europe on light-duty passenger diesel engines equipped with oxidation catalysts, in which our PFC improved particulate reduction performance by 14 to 18 percent and also improved fuel economy," Valentine said.

He reported that the company is actively seeking to expand its strategic alliances both with catalyst and engine manufacturers for the development of new oxidation catalysts that will maximize the PFCs' performance benefits. Additional engine tests and fleet trials are now under way to that end.

The company's PFC is a stable fuel additive that continuously adds minute amounts of platinum to the engine. The platinum serves to improve engine combustion and constantly refreshes the catalytic activity of the diesel oxidation catalyst or particulate filter. The company holds nine U.S. and 12 international patents on the platinum fuel catalyst, including U.S. Patent No. 5,501,714 on the combination of PFC and oxidation catalyst.

CDTI recently announced an agreement with Manchester, UK-based Holt Lloyd, the world's largest manufacturer of automotive aftermarket additives, to market the company's PFC in Europe and the Pacific Rim under the Platinum Plus trade name. The company has also announced that it is conducting fleet trials with major petroleum entities interested in marketing a cleaner-burning premium diesel fuel incorporating the PFC.

Clean Diesel Technologies is a development-stage company with patent-protected products that reduce emissions from diesel engines while simultaneously improving fuel economy and power. The company's R&D efforts and products are grouped into two categories: Platinum Fuel Catalysts (PFCs) and Nitrogen Oxide (NOx) reduction systems. Platinum Plus is a registered trademark of Clean Diesel Technologies.

CONTACT: James Valentine, COO

Clean Diesel Technologies Inc.

203-327-7050

or

Michael Hardesty (investors)

212/698-1360

Owen Daley (media)

714/252-8440

Allen & Caron/South Coast Communications