KleenAir Removes Unauthorized Berlin Stock Exchange Listing

IRVINE, Calif.--July 26, 2004--KleenAir Systems Inc. (OTCBB:KAIR):

After discovering that it had been listed on the Berlin-Bremen Stock Exchange without its knowledge or authorization, KleenAir's attorneys have succeeded in having the Company de-listed from that exchange.

"We are pleased to remove this cloud hanging over our heads," said Lionel Simons, President, "and while it appears our stock suffered significant depreciation during this period, we will need to work hard to re-establish confidence in our future to see the stock move back to its previous levels."

The Company had 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. The financial media recently reported that this may have been 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 noted a drop in its share price by over 60% since 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 in the future.

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.