Platinum Plus, Clean Diesel's Fuel Catalyst, Achieves 2002 NOx and Particulate Emission Standards on 1998 Heavy-Duty Diesel Engine.

STAMFORD, Conn.--(BUSINESS WIRE)--March 18, 1999--

Cuts Particulates Up to 42 Percent When Used With

Oxidation Catalyst; Reduces Fuel Consumption

Clean Diesel Technologies Inc. (EBB:CDTI) Thursday announced the completion of engine testing by a major independent testing organization of its Platinum Plus(R) diesel fuel catalyst (PFC).

The tests further confirmed the ability of the bimetallic fuel catalyst to reduce emissions, improve the performance of aftertreatment devices and improve fuel economy, in this case on a 1998 heavy-duty diesel engine.

Testing employed the U.S. FTP cycle on a 1998 Series 60 Detroit Diesel engine rated at 400hp. It was the same engine used by the Manufacturers of Emission Control Association consortium in their recently completed six-months of engine testing of various emission control technologies. CDT's Platinum Plus fuel catalyst was also evaluated as part of that program.

According to CDT Executive Vice President James Valentine, "Results of the testing indicated that fuel treated with Platinum Plus reduces particulates by 15 percent to 26 percent, versus the engine's baseline. When used in conjunction with a diesel oxidation catalyst, particulates were reduced by 34 percent to 42 percent to levels as low as 0.04g/bhp-hr.

"This is well below the current particulate limits of 0.1g/bhp-hr," Valentine said, "and suggests that the use of the PFC, in conjunction with an oxidation catalyst device, can achieve significant reduction from existing vehicles as well as helping designers of new engines meet tighter emission standards. Use of the PFC also reduced fuel consumption by five percent."

When used with engine changes designed to control NOx and hydrocarbon emissions to the 2002 limit of 2.5g/bhp-hr, the PFC and oxidation catalyst reduced particulate emissions by 33 percent to 0.13g/bhp-hr. Without the PFC, particulate emissions were 0.2g/bhp-hr, or double the 2002 standard.

"With some further integration into the engine design, we believe the oxidation catalyst and PFC could help reduce emissions well below the 2002 limits for NOx and particulates," Valentine said.

When used with a diesel particulate filter and exhaust gas recirculation (EGR), the PFC further reduced NOx by 8 percent to 2.3g/bhp-hr while meeting the 2002 limits for NOx, driving particulate emissions to an ultra-low-level of 0.01g/bhp-hr, or one tenth of the limit for 2002. "Use of the Platinum Plus PFC also overcame the fuel economy penalty normally associated with the use of EGR and aftertreatment systems," Valentine reported.

"These tests confirm earlier testing on a medium duty engine completed in 1997 in conjunction with a major U.S. engine manufacturer," he added. "Armed with these data, we are now prepared for U.S. field durability evaluations in 1999."

Under the recent agreement between EPA and the engine manufacturers, up to $109 million has been allocated to fund field demonstrations of advanced emission control technologies, CDT submitted over $6 million in proposals to EPA and engine manufacturers, including $2.6 million to evaluate the Platinum Plus PFC on up to 70 vehicles equipped with oxidizers and particulate filters and EGR.

"The cost of continued laboratory engine testing is extremely high, easily running $250,000/year for one engine," Valentine stated. "Fleet trials are much more cost-effective and provide real world performance and durability data. Externally funded durability programs are underway in Taiwan, Korea, Japan and Europe on the Platinum Plus fuel catalyst and filter combination and we expect to attract participation in our proposals from one or several engine manufacturers here in the U.S."

The Platinum Plus fuel catalyst is a proprietary bimetallic formulation of platinum and cerium which is used at very low levels of concentration in the fuel. Platinum and cerium are the same catalytic compounds that are used in hundreds of millions of automotive catalytic converters and most diesel oxidation catalysts.

The additive works by catalyzing the oxidation of carbon soot particles and hydrocarbons in the combustion chamber leading to reduced engine out emissions and measurable fuel economy improvements. When used with oxidation catalysts or particulate filters, the bimetallic fuel catalyst lowers the temperature for soot oxidation thus preventing fouling of active catalytic sites, which can lead to loss of emissions performance and fuel economy penalties.

This is especially important in light duty passenger vehicle applications or lightly loaded vehicles with high idle times such as buses where soot fouling is a problem due to low engine exhaust temperatures. A key feature is the ultra-low level of metal used in fuel treated with Platinum Plus, typically 4-8ppm versus 25-100ppm for other additives.

Long-term engine durability testing has confirmed that only 10-15 percent of the catalyst is emitted from the engine and exhaust system under normal operation and this is reduced even further with the use of aftertreatment devices. In addition, testing under the Swiss mining VERT program confirmed that at these low dose rates, Platinum Plus did not cause any increase in ultra-fine particulate emissions as found with other additives used at high dose rates.

CDT sees the opportunity to incorporate its Platinum Plus fuel catalyst into an on-board dosing system which could be used by engine manufacturers to certify their engines with an oxidation catalyst or diesel particulate filter on new vehicles. The additive can be concentrated so that two gallons would last for 150,000 miles before being refilled or replaced during scheduled maintenance or engine rebuild.

Under the soon to be released Heavy-Duty Diesel Voluntary Retrofit Program proposed by the U.S. EPA, states will be given credit toward their State Implementation Program goals (SIP's) for emission reductions from existing diesel vehicles using certified emission control technologies. CDT is negotiating agreements with major fuel marketers/distributors who would be licensed to blend the Platinum Plus fuel catalyst into fuel for supply to fleets equipped with aftertreatment devices. Fleets could also install additive injection systems at their diesel fuel pumps so that fuel would be treated as it was delivered into the vehicle.

Clean Diesel Technologies Inc. is a development-stage company with patent-protected products that reduce emissions from diesel engines while simultaneously improving fuel economy and power. Products are grouped into two categories: Platinum Fuel Catalysts and NOx Reduction Systems. Platinum Plus is a registered trademark of Clean Diesel Technologies Inc.

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, 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.