Clean Diesel Technologies Closes $1.876 Million Private Placement

1 December 1998

Clean Diesel Technologies Closes $1.876 Million Private Placement

    STAMFORD, Conn.--Dec. 1, 1998--Clean Diesel Technologies Inc. (EBB:CDTI) Tuesday announced that it has completed a private placement financing with a European investment group in the amount of $1.876 million against the issue of Series A Convertible Preferred Stock.
    The company also said it is continuing discussions with potential partners to commercialize three diesel engine product groups.
    The Series A Preferred Stock is convertible into CDT's common stock at a rate of 333.3 shares of common stock per share of preferred stock which is equivalent to US $1.50 per share of common stock. Assuming full conversion of the preferred stock, CDT would have approximately 5 million common shares outstanding. As a result of the issue, CDT has converted its outstanding debt to preferred stock and will have cash of approximately $1.9 million.
    Fuel-Tech N.V., CDT's affiliated company, has effectively maintained its approximate 27 percent interest in CDT by converting both its $500,000 participation in the Bridge Loan as well as its $495,000 loan to CDT into Series A Convertible Preferred Stock.
    James M. Valentine, CDT's chief operating officer, said, "We're now in discussions with potential partners for commercialization of our three product groups for diesel engines. These technologies are the ARIS(TM) 2000 NOx reduction technology, the platinum and cerium fuel catalysts for particulate filters, and the Platinum Plus(R) fuel catalysts for premium diesel fuel."
    Clean Diesel Technologies is a development-stage specialty chemical company supplying advanced catalytic fuel additives and systems that reduce harmful emissions from internal combustion engines while improving fuel economy in diesel- and gasoline-fueled engines and nitrogen oxide (NOx) reduction systems and chemicals for control of NOx emissions from diesel engines.
    Certain statements in this news release constitute "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements involve known or unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the company, or industry results, to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date hereof.