KleenAir Signs Stationary Generator Agreement with ICE UK Ltd.

    IRVINE, Calif.--Feb. 13, 2003--KleenAir Systems Inc. (OTCBB:KAIR), has completed licensing and distribution agreements with ICE UK Ltd. to provide KleenAir's NOxMaster(R) ammonia injection technology for stationary generators.
    ICE are experts at building NOx reduction systems for power generators from 500 kilowatts to 3.3 megawatts using technology by Steuler of Germany, a world leader in such systems.
    KleenAir's NOxMaster(R) NOx Reduction System has cost, space and performance advantages at the lower range of power generators, particularly suited for generators of 100 kilowatts to 500 kilowatts. It is intended to create a range of products covering the complete range of small- to medium-sized generators.
    ICE UK Ltd. will have rights to sell KleenAir's power generator products throughout Europe as well as to adapt this technology for non-road applications in the United Kingdom.
    In addition, KleenAir and ICE will be working to jointly develop a new low-cost particulate and NOx reduction system suitable for light-duty vehicles for both retrofit and OEM applications.
    "The addition of KleenAir SCR technology to our product line broadens our market opportunity into a significant high-volume field," said John Daly, managing director of ICE UK Ltd., "and we are truly excited about the revenue potential that will be generated for both our companies."
    ICE (Industrial Catalytic Engineering) is the U.K. manufacturer and distributor of Steuler De-Nox systems and has many years of specialist engineering, design and manufacturing know-how related to these types of SCR catalytic systems for large scale combustion engines. These skills will enable it to integrate NOxMaster(R) technology geared particularly to the smaller power generating combustion engines.
    "Over the last two years we have had an increasing number of inquiries for the use of our NOx reduction system for generators, particularly the very common 250 kilowatt size, for which there is a multi-million dollar U.S. domestic market as well as in Europe and in third world countries," said Lionel Simons, CEO.
    "The agreement with ICE ties KleenAir to proven experts in the field who can produce, install and service such products from which we anticipate added revenue this year in the seven figure range."
    KleenAir has a unique computer controlled ammonia system, the NOxMaster(R), which, when ammonia is 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 catalytic converters and particulate traps significantly reduce particulates as well as hydrocarbons (HC) and carbon monoxide (CO).

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