---

Clean Diesel Files Registration Statement

10 August 1998

Clean Diesel Files Registration Statement Covering Proposed Rights Offering

    STAMFORD, Conn.--Aug. 10, 1998--Clean Diesel Technologies Inc. (EBB:CDTI), a development-stage company, Monday announced that it has filed a Registration Statement with the Securities and Exchange Commission in respect of a proposed Rights Offering which will entitle holders to purchase a new series of Preferred Stock of the company which, in turn, will be convertible into Common Shares.
    Rights will be distributed to holders of Common Shares outside the United States and in those states where the securities have been registered with the appropriate securities regulatory authorities or where an exemption is available.
    The company is seeking to raise aggregate proceeds of between $2.00-$3.75 million through the Rights Offering, and the net proceeds would be used for marketing, field trials and patents, and for working capital and general corporate purposes.
    A Registration Statement relating to the proposed Rights Offering has been filed with the Securities and Exchange Commission but has not yet become effective. The securities covered by such Registration Statement may not be sold nor may offers to buy be accepted prior to the time the Registration Statement becomes effective. This communication shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of these securities in any state or other jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or other jurisdiction.
    Clean Diesel Technologies has patent-protected products that reduce emissions from diesel engines while simultaneously improving fuel economy and power. R&D efforts and products are grouped into two categories: PFCs and NOx Reduction Systems. Platinum Plus is a registered trademark of Clean Diesel Technologies.