KleenAir Systems Expands Strategic Partnership with Dinex A/S

IRVINE, Calif.--Oct. 2, 20048, 2004--KleenAir Systems, Inc. (OTCBB:KAIR-News) announced today that its UK affiliate has signed license and supply agreements with Dinex A/S, one of the leading European suppliers of automotive after-market exhaust products and emission control systems.

Over the past two years Dinex and KleenAir have developed, tested and received government approval for a combination package of particulate and NOx reduction systems focused on the implementation of the KleenAir NOxMaster(TM) ammonia based Selective Catalytic Reduction (SCR) technology. This combined system has been field-tested on taxis, buses, light commercial vehicles and refuse collection vehicles in the UK and Denmark under the brand name Dinox(TM).

The Dinox(TM) system is listed in a variety of categories on the Clean Up Register of the Energy Saving Trust in the UK and orders, subject to EST funding, are in hand for seven hundred systems to be installed over the next six months on Light Commercial Vehicles. The London taxicab retrofit upgrade program is thought likely to be mandated for implementation as of April 1st, 2005 and the Dinox(TM) system is expected to capture a significant share of the 17,500 taxicabs that will need to comply.

The agreements with Dinex cover non-exclusive use of the NOxMaster(TM) ammonia based SCR technology throughout Europe and the supply to KleenAir of Dinex manufactured systems. Dinex has sophisticated manufacturing facilities in Denmark, Latvia and Germany. In addition it has strong distribution capability in those countries as well as in the UK, France, Spain, Italy, Poland and Turkey.

"We are making a major effort to become a significant factor in emission control technology in Europe for both the retrofit and OEM market places, and welcome the partnership with KleenAir in combining our particulate reduction technology with KleenAir's NOx reduction technology," said Torben Dinesen, Managing Director of Dinex Exhaust Systems Ltd and Director of Dinex A/S.

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.