City of Houston Contracts for KleenAir NOx Reduction SCR Technology

    IRVINE, Calif.--Aug. 15, 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 the City of Houston is utilizing KleenAir's proprietary technology on Gradll Dirt Diggers with 5.9 litre Cummings engines.
    The contract between The City of Houston and Extengine calls for use of 35 units with testing on the initial six.
    Lionel Simons, President and CEO, commented, "We believe that this order validates the commercial applicability of our SCR technology in City, State, and Federal arenas. The City of Houston expects to generate very significant reductions in NOx levels. Their success will further reinforce the commercial viability of our technology."

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. On June 7th, 2002, the Office of Management and Budget (OMB) and the Environmental Protection Agency (EPA) released a statement agreeing that curbing pollution from diesel-powered non-road vehicles and equipment should be a top environmental priority. KleenAir is at the cutting edge of Selective Catalytic Reduction (SCR) technology that significantly reduces nitrogen oxides.

Safe Harbor Act Disclaimer

    The statements contained in this releases 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.