KleenAir Sale for New York City Transit

    IRVINE, Calif.--May 1, 2003--KleenAir Systems Inc. (OTCBB:KAIR), announces receipt of an order from Johnson Matthey Inc. of nearly $200,000 for several hundred units of its CarbonGuard(TM) Thermal Management System. These systems are intended to enhance performance of the particulate filters ordered by New York City Transit for retrofitting on part of their bus fleet.
    The CarbonGuard(TM) is a proprietary product of KleenAir's wholly owned subsidiary, Carbon Cloth Technologies, Inc. (CCT). This product retains heat generated by engine exhaust. It helps to achieve the temperature parameters required for a particulate filter to regenerate in order to remove accumulated soot particles. This sale is part of a continuing program of retrofit upgrade of NYTC buses and additional significant orders are anticipated over the coming months.
    "CarbonGuard(TM) technology has been developed to ensure reliable performance of particulate filters under the most difficult conditions of cold weather and `stop-and-go' applications typical of urban buses," said Robert Gooliak, President of CCT, "and we anticipate a burgeoning market not only for particulate reduction but also in other heat sensitive emission reduction applications such as Selective Catalytic Reduction (SCR) systems."
    The CarbonGuard(TM) has already proven itself in service on New York City Transit Buses and has helped to reduce expensive downtime on buses and to reduce filter maintenance costs. In addition, prototypes for a variety of applications are with a number of major automotive manufacturers in the US and in Europe. Some of these applications include OEM use of the product as an integral part of heavy-duty vehicles which are to be delivered with built-in particulate filters and SCR systems.
    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.