KleenAir to Joint Venture Chinese Engine Project With Extengine Transport Systems.

Business Editors

NEWPORT BEACH, Calif.--(BUSINESS WIRE)--Jan. 10, 2000

KleenAir Systems Inc. (OTC BB:KAIR) Monday announced that KleenAir has signed a Letter of Intent, with Extengine Transport Systems (ETS) LLC, to provide turnkey exhaust treatment systems meeting Euro 3 standards for a major Chinese engine manufacturer.

Testing and development using KleenAir's new NOxMaster(TM) NOx Reduction System and its Catalytic Converters will take place at the company's new facilities in Newport Beach. Extengine has agreed to purchase 10% interest in KleenAir.

ETS has licenses and proprietary rights for products designed to improve engine operating efficiency and reduce emissions, with a special interest in the international diesel and US Urban Bus Market. Negotiations are already underway with certain bus and public transportation organizations to set up test programs for NOxMaster(TM) technology.

ETS principals include Phillip Roberts, CEO, and Ron Powers, of Powers Design International, a Newport Beach Automotive Design firm founded 25 years ago. Powers graduated from the Art Center College of Design in Pasadena, Calif. with a BS in Transportation Design. He has designed for most of the major U.S., Japanese and Indian automotive companies. His many automotive projects include automobiles, heavy duty trucks, recreational vehicles and motor cycles.

Roberts, a graduate of Georgetown University, will have special responsibility for marketing and government liaison as well as matters relating to the Urban Bus, Chinese and Indian projects. He helped launch the ARCO AM/PM franchise in San Francisco and in addition to ARCO Petroleum Products Company has consulted with such automotive after-market companies as Battery Equaliser USA and Advanced Propulsion Technologies. Roberts was nominated for the SBA's "Exporter of the Year" award in 1995, primarily for his sale of fuel additives to Japan.

The company is in the business of developing NOx reduction systems for the automotive market together with appropriate catalytic converters designed to operate effectively with the company's patented products.

Safe Harbor Act Disclaimer

The statements contained in this release and statements that the company may make orally in connection with this release are not historical fact and are forward-looking statements within the meaning of the private securities Litigation Reform Act of 1995. Actual results may differ materially from those forward-looking statements, as such statements involve risks and uncertainties that could significantly impact the company's business and the actual outcome and results may differ materially.