KleenAir Signs with Preusse India

    IRVINE, Calif.--March 27, 2003--KleenAir Systems Inc. (OTC BB:KAIR), announces the signing of a Memorandum of Understanding with Preusse-India Pvt. Ltd for the distribution in India of its NOxMaster(R) NOx Reduction System, the CarbonGuard(TM) Thermal Management System, and its Sonic Flow Carburetor(TM).
    Recently, Indian governmental authorities have been focusing on increasing attention on pollution problems particularly NOx and CO. The major urban areas within India, a country with a population nearing 1.2 billion, are all suffering from elevated pollution levels and steps are being taken to introduce emission control legislation with regard to automotive pollution sources.
    Preusse-India is a joint venture with Preusse in Germany, and it manufactures and distributes turbochargers, superchargers and gears into the automotive market place, both OEM and After-market Retrofit. It has headquarters in Bangalore in the state of Karnataka.
    "We are very pleased to enter the growing market for NOx reduction devices, particularly because a large number of domestic vehicles are under threat of being removed from service if they are unable to meet current emission standards recently put into effect," said Rajeev s. Hundekar, CEO of Preusse-India, "and we fully expect to lead the way in introducing products that will meet those requirements in a cost-effective manner."
    It is expected that the Sonic Flow Carburetor will make a major contribution to improved performance and reduced emissions for two and three wheel vehicles, which abound in India. It is anticipated that this product will be manufactured in India within the near future and the market opportunity is substantial.
    "Preusse is increasingly looking to expand its mission from automotive performance so as to employ its engineering skills related to engine performance and exhaust flows to encompass emission reduction," said Mrs. Gudrun Goedicke, Managing Director of Preusse in Germany and a Director of Preusse-India.
    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.