PRESS RELEASE
Clean Diesel Technologies reports third quarter, nine-month results
STAMFORD, Conn.--Nov. 11, 1996--Clean Diesel Technologies
Inc. , a development stage company, on Monday reported
results for the third quarter and nine months ended Sept. 30, 1996.
For the third quarter, CDTI reported a net loss of $912,000, or 36
cents per share, compared with a net loss of $527,000, or 21 cents per
share for the same year-earlier period. For the nine months ended
Sept. 30, 1996, CDTI recorded a net loss of $2,342,000, or 94 cents per
share, compared with a net loss of $1,247,000, or 49 cents per share
during the prior year's nine-month period.
During the nine months ended Sept. 30, 1996, CDTI substantially
increased its investments in research and development,
commercialization activities, staffing and other administrative
programs.
Clean Diesel Technologies' Chief Operating Officer James Valentine
commented: "The overall expenditure increases during both the third
quarter and first nine months of this year are the result of expanded
development programs and our increased efforts towards the transition
from a development stage company to an operating company.
"In September, we signed an agreement with Holt Lloyd, a world
leader in the automotive aftermarket in Europe and Asia, to sell our
Platinum Fuel Catalyst (PFC) for use in the aftertreatment of diesel
fueled vehicles under the Platinum Plus trademark. The agreement
covers territories worldwide except in North, Central and South
America. We expect commercial sales to commence in the first quarter
of 1997."
Valentine went on to say: "Additionally, as the regulatory
environment for diesel emission control continues to strengthen in the
U.S. and abroad, we have expanded our market-oriented tests with
potential marketing partners. We have also initiated several joint
development programs in the area of NOx emission reductions from diesel
engines and recently signed a Memorandum of Understanding with Nalco
Fuel Tech to cooperate on the commercialization of several NOx
reduction technologies."
Research and development expenses for the third quarter and first
nine months of 1996 increased to $496,000 and $1,072,000, respectively
from $256,000 and $491,000 during the respective comparable periods in
1995. The increase was primarily due to significant testing conducted
with potential marketing partners on light-duty and heavy-duty diesel
engines, using the company's PFC either alone or with a catalytic
oxidizer.
CDTI's general and administrative expenses (G&A) increased to
$447,000 in the third quarter of 1996 from $189,000 in the same period
last year; G&A for the first nine months of 1996 increased to
$1,398,000 from $606,000 in the same year-earlier period.
The increases were due to the company's establishment of its
offices, the recruitment and hiring of additional technical staff, and
increased management and administrative costs.
Valentine reported that the company's balance sheet continues to be
strong with $4.3 million in cash and cash equivalents, $2 million in
short-term investments, $0.7 million in debt and a current ratio of
4.9:1.
Clean Diesel Technologies is a development stage company with
patent-protected products that reduce emissions from diesel engines
while simultaneously improving fuel economy and power. The company
currently holds nine U.S. and twelve foreign patents related to its
PFC technologies, as well as numerous new patent applications. R&D
efforts and products are grouped into two categories: PFCs and
Nitrogen Oxide (NOx) Reduction Systems.
CLEAN DIESEL TECHNOLOGIES INC.
(A Development Stage Company)
STATEMENTS OF OPERATIONS
(Unaudited)
Period from
Jan. 1, 1992
Three Months Ended Nine Months Ended through
Sept. 30, Sept. 30, Sept. 30,
1996 1995 1996 1995 1996
Costs and expenses:
General and
administrative $ 447,000 $ 189,000 $1,398,000 $ 606,000 $2,867,000
Research and
development 496,000 256,000 1,072,000 491,000 2,657,000
Patent filing and
maintenance 41,000 43,000 131,000 117,000 609,000
Loss from
operations 984,000 488,000 2,601,000 1,214,000 6,133,000
Interest (income)
expense, net (72,000) 39,000 (259,000) 33,000 (191,000)
Net loss during
development
stage $ 912,000 $ 527,000 $2,342,000 $1,247,000 $5,942,000
Net loss per
common share $ 0.36 $ 0.21 $ 0.94 $ 0.49 N/A
Average number of
common shares
outstanding 2,500,000 2,566,346 2,500,000 2,566,346 N/A
CONTACT: Clean Diesel Technologies
James Valentine/Scott Schecter
203/327-7050
or
Allen & Caron/South Coast Communications
Michael Hardesty (investor relations)
212/698-1360
or
Owen Daley (media)
714/252-8440
