KleenAir Achieves First UK Registered Automotive SCR Pollution Control System

    IRVINE, Calif.--Jan. 7, 2003--KleenAir (OTCBB: KAIR - news) announced that its NOxMaster(R) NOx Reduction System is the first Selective Catalytic Reduction (SCR) technology to be approved by the British Government.
    Following extensive emissions testing at Millbrook and lengthy in-service durability programs on London taxis, the Energy Saving Trust (EST) has approved KleenAir's technology for inclusion in its TransportEnergy Cleanup Register and for its subsidy program.
    The Register will also identify DINEX Exhaust Ltd of the UK, recently appointed as the approved European outlet for KleenAir technology. DINEX will undertake to arrange for installation, maintenance and support of NOxMaster(R) Systems subsequently purchased for the upgrade of London taxis to meet the London Mayor's recently proposed new emission requirements.
    The European Community has been leading the race in approving tighter regulations to improve NOx reduction SCR technologies, which are increasingly recognized as the wave of the future. It is anticipated that production of new vehicles from 2006 forward will include SCR, and the market for SCR as a retrofit technology will gather steam from this year forward. Europe produces over 6 million new diesel powered vehicles annually and there is an installed base of over 40 million vehicles.
    "Being the first approved SCR technology in the UK for passenger size vehicles, positions KleenAir to secure a significant share of the UK and European SCR retrofit markets, and the alliance with DINEX provides the mechanism for implementation of the strategy," said Lionel Simons, President of KleenAir Systems, Inc.
    DINEX is a leading manufacturer and distributor of exhaust systems, particulate filters, and silencers throughout Europe, with plants in Denmark and Latvia, and sales and service facilities in the UK, Scandinavia, Germany, France, Italy and Spain.
    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.