KleenAir Discovers Unauthorized Berlin Stock Exchange Listing

IRVINE, Calif.--June 3, 2004--KleenAir Systems Inc. (OTCBB:KAIR) has discovered that it has been listed on the Berlin-Bremen Stock Exchange without its knowledge or authorization. KleenAir's attorneys have been instructed to contact the exchange authorities, the market makers, and whomever was responsible for the unauthorized listing, and to take action immediately to de-list the stock from the Berlin-Bremen Stock Exchange. The attorneys have been instructed to determine whether the company has any recourse against any of the parties involved to recover damages from this unauthorized action.

The company has discovered from other recent public announcements by companies similarly targeted, that over 200 U.S. publicly traded companies have been listed on the Berlin exchange without company permission. U.S. Energy Corp. (USEG) announced on June 2, that "the financial media recently reported that this may be part of an effort by certain brokers to avoid U.S. restrictions against 'naked short selling' and such practices may allow for market manipulation by selling non-existent shares of stock in an effort to force the price down."

The company notes a drop in its share price by over 50 percent in the last 2 to 3 weeks and believes that the reason for this decline is the listing on the Berlin-Bremen Exchange. The company hopes that by taking prompt action to de-list from the Berlin-Bremen Exchange, stability in its stock price will be restored and potential market manipulation of its stock will be averted.

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 information contained in this release, other than historical information, may be considered forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Projections and other forward-looking statements and management expectations regarding future events and/or financial performance of the company -- although given in good faith -- are inherently uncertain and actual events or results may differ materially.