KleenAir Systems Targets Retrofit and OEM Markets

    FULLERTON, Calif.--Dec. 18, 2001--KleenAir Systems Inc. (OTCBB:KAIR) announced that following successful tests conducted recently in the city of Houston for both NOx and particulate reduction using its proprietary SCR technology, KleenAir Systems has entered into discussions with engine and exhaust system manufacturers, with a view to incorporating its technology for both retrofit and OEM programs.
    The recent tests have confirmed that the NOxMaster(TM) NOx Reduction System combined with its Oxidizing Particulate Trap (OPT) is in the forefront of new technologies designed to dramatically reduce emissions from heavy duty diesel powered vehicles that are a major source of NOx, Particulates (PM), Carbon Monoxide (CO) and Hydro Carbons (HC).
    The California Air Resources Board (CARB) has recently indicated its preference for heavy-duty systems that generate a substantial level of reduction for both NOx and Particulates in combination.
    The KleenAir strategy has been to develop such combination systems in order to achieve maximum emission reductions for buses, trucks, heavy-duty off-road construction equipment and diesel-powered electric generators up to 2 megawatts.
    KleenAir systems are currently being field tested on buses in Hong Kong and with a Local Authority in the London area in addition to testing of light-duty systems on London Taxis.
    KleenAir expects to be part of bus testing programs with certain members of the California Transit Association during the year 2002, to demonstrate the effectiveness of clean diesel engines with appropriate exhaust treatment systems for NOx and Particulate reduction.
    KleenAir has a unique computer-controlled ammonia system, the NOxMaster(R), which, when injected into the exhaust stream, interacts with NOx produced during combustion. The result converts environmentally hazardous NOx into harmless nitrogen and water.

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    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.