KleenAir To Make Taxis and Buses in London 90% Greener

IRVINE, Calif.--Aug. 1, 20040, 2004--KleenAir Systems Inc. (OTC BB:KAIR) announced today that a new emission reduction system was launched today, that will reduce the amount of nitrous oxides and particulates emitted from the thousands of buses and taxis in London by up to 90%.

The KleenAir NOxMaster(TM) is fitted to the existing exhaust systems of taxis and buses and uses an injection of ammonia to transform the poisonous nitrous oxides in the exhaust fumes into the harmless constituents of nitrogen and water. The system also includes a filter that reduces harmful particulates. NOx and particulates cause a variety of lung diseases such as asthma and emphysema, They contribute to ozone depletion and cause smog. The system can be fitted in a matter of hours and is designed to offer a simple and cost effective solution to reducing greenhouse gases.

KleenAir's NOxMaster is the only such system approved the London Government's Energy Savings Trust Clean-Up Register for light and medium size vehicles, and entitles Installers of the system to a 75% Government Grant. By the end of September installation of systems on taxis and buses is expected to commence. Eventually some 17,500 taxis will be required to upgrade to the standard necessary under the Mayor's Clean Air Strategy. The core of the Mayor's strategy is the creation of a Low Emission Zone (LEZ) covering the whole of the area within the M25 by 2007 within which all London taxis and buses will have to upgrade their exhaust system to meet the new greener emission standards.

At the recent launch, Darren Johnson, Chair of the Environment Committee of the London Assembly and recent Green Party Mayoral Candidate said, "The launch of the KleenAir system is an important step forward for improving the air quality in London. It is vital that we make low emission buses and taxis the norm in the city rather than the exception. Official figures show that over 1600 people die prematurely each year in London because of poor air quality and we need to do everything we can to encourage cleaner, greener vehicles. I am pleased that the Energy Savings Trust has backed this initiative with funding and I am sure that the introduction of the KleenAir system will have a crucial role to play in establishing the Low Emission Zone by 2007."

Lionel Simons, President of KleenAir Systems, Inc. commented, "As we had hoped, the London Assembly are taking a strong stand on the issue of reducing pollution in London. Together with our partners Dinex, we are pleased to be able to offer a cost-effective solution available now, that will make a significant contribution towards the Mayor's Clean Air Strategy and ultimately a real difference to the air quality in the capital."

KleenAir recently announced that they were able to demonstrate their combination Particulate Filter (DPF) and NOx reduction (SCR) systems at a UK Government run Waste Management Show in Toraby, England.

The Company also announced another institutional financing for $2 million had been agreed with a second London, UK based investment company. The transaction exchanges $2 million of a quoted London Stock Exchange investment trust equity for an equal value of KleenAir stock. This helps improve the balance sheet and liquidity of the company.

About KleenAir Systems, Inc.

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.