NOx Abatement Funds Released for Taxis and Buses in London Says KleenAir.

IRVINE, Calif. -- KleenAir Systems Inc. (OTCBB:KAIR) announces that the Energy Savings Trust (EST) in the UK published on June 14th, 2004 the release of the first allocation of funds under its NOx Abatement Program. Six London Taxicab fleet owners have applied for funding to fit KleenAir Systems NOx and Particulate reduction systems to some 120 cabs. In addition, applications have been filed under this release for some 50 London buses.

This release covers available funding for the months of June and July and will be awarded on a first-come, first-served basis. If granted, then installation of these products would take place in September. A similar release will occur at the beginning of August for the months of August and September, and then again in October.

KleenAir, with its systems integrator Dinex Exhausts Ltd, is the only company listed in the SCRF (Selective Catalytic Reduction plus Filter) category for London Taxicabs and has the highest grant rating of 75% of the cost. It is estimated that eventually over 17,500 of the London Taxicab Fleet will be retrofitted with devices to upgrade them to Euro 3 standards under the Mayor's Clean Air Strategy.

On June 10th, Ken Livingstone was re-elected Mayor of London by a 10 point majority and has announced at his press conference of June 15th 2004 his intention to create a new Climate Change Agency. The centerpiece of this initiative is the Low Emission Zone (LEZ) that will be created inside the M25 ring road.

Under the LEZ policy, certain diesel vehicles will be required to upgrade their emissions by 2007, a ruling that will affect a large number of vehicles, in addition to London taxis and buses. KleenAir believes it is well positioned to cater to this retrofit market opportunity.

"As anticipated, the Mayor is confirming his strong stand on the issue of reducing pollution in London," said Lionel Simons, President, "and the KleenAir product line, capable of achieving his clean air goals, is ready for implementation through our strategic partner, Dinex Exhaust."

KleenAir is at the cutting edge of automotive emission reduction technology including Selective Catalytic Reduction (SCR), Diesel Particulate Filters, Diesel Oxidizing Catalysts and advanced catalytic technology that significantly reduces nitrogen oxides, carbon monoxide, hydrocarbon and particulates. These pollutants have been shown to be a major contributor to heart and lung disease.

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.