KleenAir Receives Additional Investment from Prudent Bear Fund; Company Gains an Aggregate of $1.5 Million From Mutual Fund Manager

    IRVINE, Calif.--July 23, 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 announced that following an investment of $1 million earlier this year, The Prudent Bear Fund (BEARX) has just invested an additional $500,000.
    The Prudent Bear Fund was founded in 1995, with net assets of $299.86 million. The Fund seeks capital appreciation and invests primarily in common stocks and warrants. Prudent Bear possesses a Morning Star rating of "***" and year-to-date returns are 61.51%.
    "We are very enthused by Prudent Bear's demonstration of its confidence in KleenAir and its potential for exponential growth. Certainly, in a volatile marketplace, fund managers are taking additional precautions in their investment choices. The $500,000 just invested following the $1 million invested in the Company a few months ago, certainly provide the impetus for continued momentum," stated Lionel Simons, President and CEO.

    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.