Beijing Anti-Pollution Deal For KleenAir

IRVINE, Calif.--March 9, 2004--KleenAir Systems Inc. (OTCBB:KAIR) announces an agreement with Beijing Luchuang Environmental Protection Group to test and evaluate a variety of emission reduction technologies in cooperation with KleenAir. These include KleenAir's Selective Catalytic Reduction (SCR) for NOx reduction, the Oxidizing Particulate Trap (OPT) for particulate reduction, its Diesel Oxidizing Catalysts (DOC) for CO and HC reduction, and 3 way catalytic converters for emission reduction on gasoline powered vehicles.

Beijing LC has substantial facilities manufacturing a variety of environmental products including large quantities of catalytic converters for the OEM automotive industry and is partially owned by Beijing Municipality.

Tests are currently underway at the Tianjin National Testing Center, Beijing EPA Test Center and the Beijing University Institute of Technology. These tests are designed to verify the suitability of these products to achieve Euro 2 and 3 emission goals for new gasoline and diesel vehicles.

According to the WallStreet Journal article of December 11, 2003 headlined "China Senses Need for Cleaner Fuel" new fuel specification regulations are expected for 2005. These will significantly reduce the level of sulphur in the fuel. Such regulations are already in place for the Beijing Bus Transportation System but are still too high for most particulate filter products. KleenAir's OPT is designed to operate effectively at sulphur levels up to 500 ppm while others operate at under 15 ppm.

While tests include heavy-duty vehicles such as buses, the tests conducted so far on light duty shuttles and commercial vans under 3 liters are promising both in terms of efficiency and cost effectiveness. This system is similar to that designed for KleenAir's London Taxi Program.

"The Beijing Olympic Games, scheduled for 2008, have provided the impetus for environmental regulations designed to improve air quality in line with commitments made to the International Olympic Committee," said Peter Jiang, Chairman, "and we expect that KleenAir's products will help meet these goals."

KleenAir is at the cutting edge of automotive emission reduction technology including Selective Catalytic Reduction (SCR), Diesel Particulate Filters, Diesel Oxidizing Catalysts and advanced catalytic technology that significantly reduces nitrogen oxides, carbon monoxide, hydrocarbon and particulates. These pollutants have been shown to be a major contributor to heart and lung disease.

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