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KleenAir Systems Licensee Secures ARB Verification

IRVINE, Calif.--Jan. 2, 20056, 2005--KleenAir Systems Inc. (OTCBB:KAIR) announced today that their U.S. licensee, Extengine Transport Systems, has received a Retrofit Verification approval from the California Air Resource Board (ARB) for its ADEC system utilizing KleenAir Systems Inc. NOx reduction technology.

In a recent announcement, the ARB stated that "the ADEC system had been verified for 1991-1995 model year off-road Cummins 5.9 liter diesel engines from 150 to 200 horsepower, which are used in excavators, dozers and loaders operating on standard CARB fuel or ultra low sulfur diesel fuel."

The ARB announcement states that "the ADEC system employs a diesel oxidation catalyst (DOC), selective catalytic reduction catalyst (SCR) and ammonia slip catalyst to achieve a 25% reduction in particulate matter emissions, qualifying it for Level 1 verification." The system also achieves an 80% reduction in NOx emissions using KleenAir's ammonia diffusion patented technology.

KleenAir receives a license royalty from Extengine on all sales of SCR systems using its patented technology.

This action represents a milestone in U.S. emissions standards, being the first governmental approval of Selective Catalyst Reduction (SCR) and in this case using gaseous ammonia as the reductant of choice.

"Many years of development of ammonia SCR have culminated in the acceptance by the authorities of the most promising technology for the reduction of NOx in automotive exhaust," said Lionel Simons, president of KleenAir Systems Inc., "and KleenAir has additional verification applications in process which should give impetus to increased retrofit SCR applications."

About KleenAir

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.