KleenAir Comments on California Greenhouse Bill

    IRVINE, Calif.--July 25, 2002--KleenAir Systems Inc. (OTC BB:KAIR), an international environmental company dedicated to the development, testing and commercialization of products to help reduce smog and air pollution, today commented on the bill signed by Gov. Gray Davis in the State of California to cut greenhouse gases from motor vehicles.
    "With passage of the measure in Calfornia, the nation's largest car market, environmentalists hope not only to reduce gas-forming emissions, but also force changes that will improve fuel efficiency of automobiles sold across the country...The law augments the authority of those responsible for regulating air pollution, the California Air Resources Board. But it provides the outline of how to reach its goals of achieving the "maximum feasible reduction" of greenhouse gases. It requires that new cars sold here seven years from now emit less of the gases that trap heat that falls to the Air Resources Board to figure out the technology."
    "The law marks the first attempt by a state to cut tailpipe emissions of carbon dioxide and other gases linked to global warming. Vehicles produce about 60% of those gases in California, with cars, trucks and utility vehicles contributing the most." (Source: LA Times - July 23, 2002).
    "Clearly, KleenAir with its unparalleled and patent-protected technology is ready to rise to the task," stated Lionel Simons, CEO and President. "The precedent, signed into law on Monday, July 22nd, we contend will become a national standard. KleenAir's track-record and efforts thus far with city, state and government entities on a domestic and international basis, demonstrate that recognition of this issue is escalating exponentially. Governor Davis, in signing this bill, has given the emission of greenhouse house and other toxic gases from vehicles the national attention it deserves as KleenAir readies to assist its home state."
    "Our Sonic Flow Carburetor significantly increases fuel efficiency on gasoline powered engines, thus reducing CO2 emissions and the NOxMaster reduces NOx emissions and facilitates modifications that improve fuel efficiency," Simons concluded.

    About KleenAir

    KleenAir is dedicated to the development, testing, and commercialization of products designed to help reduce smog and air pollution in the environment by reducing the emission of nitrogen oxide (NOx). Nitrogen Oxide reacts with sunlight in the atmosphere to create ozone. The principal initiative of KleenAir is the NOxMaster(R) System, which is an electro-mechanical device that substantially reduces the amount of NOx in gasoline and diesel exhaust. KleenAir owns the patents on which the NoxMaster Systems are based. The type of business that KleenAir is targeting at the outset is the diesel retrofit marketplace. The market segments that KleenAir plans to reach are the government mandated NOx reduction programs and Emission Trading Credit Programs.

    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.