Clean Diesel Technologies Acquires Worldwide Intellectual Property Rights to Low-Cost Diesel Particulate Filter Technology

STAMFORD, Conn.--Sept. 27, 2005--

Company Will Offer Commercial Partnership Opportunities for Worldwide Manufacturing and Distribution Licenses

Clean Diesel Technologies Inc. (OTCBB:CDTI)(AIM:CDT)(AIM:CDTS), a developer of chemical and technological solutions to reduce harmful engine emissions, today announced that it has signed a definitive agreement with Mitsui and PUREarth that enables the complete transfer and assignment of the intellectual property rights for its innovative catalyzed wire-mesh filter (CWMF) technology to Clean Diesel Technologies. Under the agreement, Clean Diesel Technologies ("CDT") has acquired the worldwide title to the patents and other intellectual properties, excluding Japan. As a result, CDT may now make this proven, low-cost diesel particulate filter technology available to its industry partners under license arrangements. The CWMF technology is designed for use in a wide range of diesel engine particulate emission control applications.

According to James Valentine, CDT president: "This durable, patented low-cost filter design bridges the gap between low-efficiency diesel-oxidation catalysts and expensive, heavily catalyzed particulate filters. The wire-mesh filter system is designed to work synergistically with a fuel-borne catalyst (FBC) for reliable performance. This combined FBC/CWMF technology is especially suited to solving the challenging problem of delivering a reliable pollution control solution which can be easily retrofitted for the older, higher-emission diesel engines expected to be in service for years to come. CDT will be offering licensing opportunities and technology transfer programs for the CWMF technology to establish manufacturing and distribution partnerships that meet worldwide retrofit and original equipment manufacturer needs."

The CWMF technology was initially developed by Mitsui/PUREarth for use in conjunction with Clean Diesel Technology's Platinum Plus(R) FBC as a lower-cost and reliable alternative to the traditional heavily catalyzed filter systems. The system has been verified by CDT under the U.S. Environmental Protection Agency's rigorous Environmental Technology Verification protocol as reducing toxic particulates by up to 75 percent, carbon monoxide by 60 percent, hydrocarbons by 80 percent, and NOx by 9 percent. It also provides lower NO2 emissions levels relative to traditional, heavily catalyzed filter systems.

In addition to reducing the cost to achieve these emissions improvements, the patented combination with an FBC permits the CWMF to operate effectively at the lower exhaust temperatures found in stop-and-go service applications. The FBC reduces the engine-out emissions and allows soot captured in the CWMF to be reliably combusted at lower exhaust temperatures. Commercial systems of Platinum Plus FBC with this durable CWMF have demonstrated performance in beverage delivery vehicles, refuse trucks and buses. The Platinum Plus FBC, used with the filter system, may be easily introduced into bulk-fuel supplies or through individual vehicle-mounted on-board dosing systems.

CDT recently announced an agreement with Fleetguard to blend and distribute the Platinum Plus products in the U.S. and internationally. While the initial target is for retrofit applications, there may also be opportunities to integrate the system into new vehicle designs wherever a low-cost diesel particulate filter solution is required.

About Clean Diesel Technologies Inc.

Clean Diesel Technologies Inc. and Clean Diesel International LLC are developers of chemical and technological solutions to reduce harmful engine emissions. Clean Diesel Technologies has patented products that reduce emissions from combustion engines while simultaneously improving fuel economy and power. Products include Platinum Plus(R) fuel-borne catalysts (FBC), the Platinum Plus Purifier System and the ARIS(R) 2000 urea-injection systems for selective catalytic reduction of NOx. Platinum Plus and ARIS are registered trademarks of Clean Diesel Technologies Inc. For more information, visit www.cdti.com or contact the company directly.