Major Acquisition Announced by KleenAir

    IRVINE, Calif.--June 10, 2002--KleenAir Systems Inc. (OTCBB:KAIR - news), announces that it has signed a Letter of Intent to acquire controlling interest in a Ford tier one automotive supplier located in Detroit. The acquisition is expected to close by September.
    The company has annual sales of approximately $7 million and profit of over $1 million. It provides product development and engineering services as well as manufacturing prototypes and precision components for most of the major automotive OEMs.
    "This acquisition will generate significant sales and profit for the Company. More importantly, it will provide the production engineering know-how to bring KleenAir's SCR NOxMaster(R) NOx and Particulate Reduction Systems to market in the coming months and years," said KleenAir CEO Lionel Simons. The new acquisition will add additional proprietary technologies geared to pollution reduction as well as significant access to potential OEM users of these technologies. It is expected that KleenAir will open a Technology Center in Detroit.
    On Friday June 7, 2002, the Office of Management and Budget (OMB) and the Environmental Protection Agency (EPA) released the following statement agreeing that curbing pollution from diesel-powered non-road vehicles and equipment should be a top environmental priority.
    "Non-road engines emit significant amounts of fine particles and nitrogen oxides," said John D. Graham, Administrator of OMB's Information and Regulatory Affairs. "OMB and EPA share a concern that inhalation of fine particles is associated with a variety of adverse health effects. We are interested in addressing these critical issues and protecting Americans from the harmful health effects of diesel pollution."
    KleenAir is at the cutting edge of Selective Catalytic Reduction (SCR) technology that significantly reduces nitrogen oxides. It has received an Executive Order from the California Air Resources Board (CARB) for the use of its NOxMaster(R) System for diesel-powered non-road vehicles and equipment.
    KleenAir owns the patented and 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. In addition, the Company's exclusive and unique converters significantly reduce particulates as well as hydrocarbons (HC) and carbon monoxide (CO). These pollutants have been shown to be a major contributor to heart and lung disease.
    The acquisition generates sales revenue that will be of immediate benefit to KleenAir and will contribute to bottom-line profit, helping achieve the Company's financial goals for the year. It provides a potential installed customer base for KleenAir products as well as certain OEM opportunities

    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.