Shanghai Joint Venture For KleenAir to Develop Emission Technologies

IRVINE, Calif.--March 11, 2004--KleenAir Systems Inc. (OTCBB:KAIR) announced an agreement with China Display Company Limited of Shanghai to establish a Joint Venture with KleenAir to create a Technology Center to develop and support a variety of emission reduction technologies. 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 Diesel Fuel Injection and Management Systems for diesel retrofit programs in association with ServoTech Company of Detroit.

China Display has focused its business model on developing innovative state-of-the-art technologies identified by the Chinese Government as belonging to a group of six high priority high-tech fields given special preference for funding and development. They are currently among the leading Chinese companies in the fields of Integrated Circuits, High Definition Television (HDTV), embedded systems, satellite communications and telemedicine. They are also the largest supplier of televisions to Phillips worldwide.

"With environmental pollution now a top policy priority for our Government, the development of China-based high-tech solutions in this field is very timely," said Guo Liang, Chairman of China Display, "and we believe that this proposed Joint Venture with KleenAir Systems will give us access to the latest technologies for the reduction of automotive emissions."

An investment in the order of $6 million is anticipated to equip and build a Technology Center with the appropriate vehicle testing systems, and prototype and product development laboratories. KleenAir patented technology will be transferred to the Center, which will adapt and modify this technology for the specific applications and needs of the Chinese OEM and retrofit automotive markets.

Lionel Simons, President of KleenAir Systems, stated, "There is an urgent need for SCR and particulate reduction technology for diesel engines in China, and the most efficient way to achieve this goal is to create a technical capability to generate application solutions for KleenAir distributors throughout China, where automotive output is projected to increase from 5 million to 15 million vehicles from 2005 to 2012."

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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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.