KleenAir Acquisition of ServoTech Strongly Positions Company in Global OEM Market

    IRVINE, Calif.--Oct. 29, 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 as a result of the recently announced acquisition of ServoTech Engineering a Ford Motor Company licensee, the Company has infiltrated the Original Equipment Manufacturer ("OEM") market both on a domestic and international basis.
    Additionally, the acquisition provides KleenAir a consumer-friendly, highly-marketable Selective Catalytic Reduction ("SCR") system in addition to the existing fleet oriented retrofit program.
    Currently, there are a number of OEM test and evaluation programs with major automotive companies in the U.S. and Europe. As the testing and evaluation continues, KleenAir is negotiating manufacturing and distribution agreements in the U.K., Scandinavia, Germany, France, Italy and Spain for on-road, off-road and stationary SCR applications.
    "We are most enthused at the prospects that lie ahead with ServoTech, a Ford licensee and tier 1 supplier. Aside from being immediately beneficial, this acquisition provides the company with tremendous and immediate opportunities. The current rate of European production of diesel vehicles is running at a rate of close to 50% of all new vehicles which is an annual rate of 15 million. Existing diesel engines contribute to a significant % of global warming and related air pollution and are under severe scrutiny by governments worldwide. KleenAir is now more than ever, well positioned to exploit this market by use of it's competitively priced after market retrofitted system that meets and exceeds every government test to date, not to mention the aforementioned OEM opportunities." 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. 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 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.