KleenAir Announces Start of London Taxi Program

IRVINE, Calif.--Dec. 20, 2004--KleenAir Systems Inc. (OTCBB:KAIR) announced today that London Mayor Ken Livingstone and the Public Carriage Office have released the long anticipated announcement regarding the upgrading of London's 20,000 Taxicabs. Starting July 1, 2005, older London Taxicabs will have to upgrade to the current Euro 3 emission standard and the entire fleet will need to be upgraded by Dec. 3, 20041, 2007.

It is expected that over 17,000 taxis will eventually fit particulate and NOx reduction devices or convert from diesel to liquid petroleum gas (LPG). KleenAir's NOxMaster and the DINOX emission control system of KleenAir's strategic partner, Dinex Exhaust Systems Ltd., are currently approved by the Energy Savings Trust (EST) Clean-Up Register for fitting to the London taxicabs. The program will be funded by a charge of 20p per journey to be implemented as of April 1, 2005.

"London has the worst air quality in the UK, and air pollution is estimated to cause 1,600 pre-mature deaths every year in London," said Livingstone, "and we hope that the extra revenue of 20p per journey will encourage drivers to fit a GBP 2,500 pollution filter, convert to LPG or bring forward the purchase of new vehicles."

Taxis are responsible for 24% of fine particle and 12% of NOx pollution in central London. These emissions can cause heart and lung diseases and trigger breathing problems. Today's announcement is part of a drive to improve air quality in the capital.

Today's London Evening Standard noted that this announcement is part of a drive to improve air quality in the capital. By 2007, Livingstone aims to have a "low emission zone" in place which would also see the most polluting lorries banned.

"KleenAir has been testing its NOx and particulate reduction systems on London taxis for the last several years and it is gratifying that our technology will be playing a significant role in the upgrading of these vehicles and the improving of public health in London," said Lionel Simons, president of KleenAir Systems Inc., "and successful implementation of systems on these vehicles will lay the groundwork for the large number of other vehicles that will need to upgrade by the end of 2007 under the Low Emission Zone (LEZ) strategy of Mayor Livingstone."

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.

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