KleenAir Announces OEM Deal in China for Catalytic Converters

IRVINE, Calif.--March 18, 2004--KleenAir Systems Inc. (OTCBB:KAIR) announced that it has concluded an agreement with Wuhu Keyue Enterprise Development Co. Ltd., of Anhui Province, to supply three-way catalytic converters for its OEM customers subject to satisfactory completion of tests currently underway. These are geared primarily to light duty passenger cars ranging from 1.1 to 2.4 liters currently manufactured by a well-known Chinese automobile manufacturer. The special features of catalysts to be supplied by KleenAir is the ability to achieve Euro 3 standards at significantly lower cost than existing products.

Mr. Wen Wang, President of the Wuhu Company, said, "With constant pressure to improve performance and reduce costs, we are pleased to work with KleenAir Systems to solve the problem of significantly reducing emissions at a time when our OEM customers are gearing up to double their automobile output."

The three-year agreement would have a value of approximately $10 million and includes the transfer of state-of-the-art canning technology to produce a finished product capable of meeting new mileage and durability requirements of the OEM user. This same technology can be applied to the canning of KleenAir's SCR and Filter systems to ensure product integrity and long life. Initial tests have proved very satisfactory and will continue over the next several months.

"The burgeoning China automotive market is an ideal opportunity to transfer technology for emission reduction, and improved product performance will help improve the air quality in major Chinese urban areas, especially prior to the upcoming Olympic Games," said Lionel Simons, President of KleenAir.

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.

Safe Harbor Act Disclaimer

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.