KleenAir Presents London Taxi Cleanup Proposals

    IRVINE, Calif.--Dec. 11, 2002--KleenAir Systems, Inc. (OTCBB: KAIR). Following publication of the London Mayor's "Air Quality Strategy Proposal for Licensed London Taxis," KleenAir Systems, Inc. was invited to present its proposals for achieving Euro 3 standards for the London fleet of 20,000 taxis for both NOx and particulate reduction.
    Having completed the London Taxi testing program for its NOxMaster(R) NOx Reduction Systems, funded by the Energy Savings Trust (EST), KleenAir has now presented its proposals to the Public Carriage Office (PCO), which is responsible for licensing taxis.
    "Our proposals to meet the Mayor's NOx and particulate standards would result in the reduction of almost 3,500 metric tonnes of NOx and over 400 metric tonnes of particulates from the years 2004 through 2007," said Lionel Simons, President, "with predictable savings of lives and reduction of pollution related illnesses and health costs to the Government."
    Furthermore, KleenAir's cost-effective technology would save the Government millions of pounds in subsidies compared to the LPG alternative being considered and could still be provided at little or no cost to the taxi owners.
    KleenAir continues to move forward on its Mercedes Sprinter Bus and Refuse Collection Truck test programs in London, with results expected in March 2003, and expects shortly to add other buses to its testing lineup.
    In the US, installation is being prepared for the City of Houston vehicles. KleenAir's affiliated company, ServoTech, is about to begin installing systems on school buses and a Ford F450. "We believe our SCR technology will make a major contribution to emissions reduction and, when used on school buses, will help safeguard the health of our children," said Dr. Hamid Servati, President of ServoTech Inc., and Vice-Chairman of KleenAir Systems, Inc.
    KleenAir and ServoTech are also in negotiation with a number of major OEM automotive companies to commence test and evaluation programs on the Carbon Guard(R) thermal management system and the ServoTech Sobris Urea injection system, a Ford licensed product.
    KleenAir is at the cutting edge of Selective Catalytic Reduction (SCR) technology that significantly reduces nitrogen oxides. 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.

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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.