Clean Diesel Technologies Reiterates Inducement Awards

VENTURA, CA--July 13, 2012:  Clean Diesel Technologies, Inc. ("Clean Diesel" or the "Company"), a cleantech emissions control company, has reiterated that on March 8, 2012 it granted inducement awards to R. Craig Breese, Clean Diesel's newly appointed President and Chief Executive Officer. The awards were previously announced in a Form 8-K filed with the Securities and Exchange Commission on March 14, 2012.

Mr. Breese's inducement awards include (i) a non-qualified stock option to purchase up to 176,676 shares of the Company's common stock at an exercise price per share equal to the closing price of the Company's common stock on the date of grant, that will vest and become exercisable as to 28% on the first anniversary of the date of grant and 9% quarterly thereafter, and (ii) a restricted share unit award representing the right to receive up to 58,892 shares of the Company's common stock, that will vest as to 28% on the first anniversary of the date of grant and 9% quarterly thereafter, beginning on June 20, 2013.  Equity awards that have not vested at the time of Mr. Breese's termination of service, other than a termination without cause or resignation for good reason concurrent with or subsequent to a change in control of the Company, will be forfeited.  The Company's Compensation and Nominating Committee approved the inducement awards as an inducement material to Mr. Breese's acceptance of employment with Clean Diesel in accordance with NASDAQ Listing Rule 5635(c)(4).