KLEENAIR Announces UK Emmissions Control Agreement

4 October 1999

KLEENAIR Announces UK Emmissions Control Agreement

    DANA POINT, Calif.--Oct. 1, 1999--KleenAir Systems, Inc. (OTC BB: KAIR) today announced that KleenAir has signed a Letter of Agreement with a UK multi-national company with regard to a strategic partnership to integrate its NOxMaster(TM) System with a new plasma catalyst proven to dramatically reduce particulates in emissions from diesel powered automobiles and trucks.
    KleenAir has a unique computer controlled ammonia system which, when injected into the exhaust stream, interacts with NOx produced during combustion. The result converts environmentally hazardous NOx into harmless nitrogen and water. Kleenair's potential strategic partner uses microwave technology to eliminate particles from exhaust emissions. NOx and particulates are the two most intractable exhaust emission problems relating to diesel engines.
    KleenAir owns worldwide patents on its system, and has an additional patent application pending. The microwave catalyst is also covered by worldwide patents. The integrated system would enable automotive vehicles to meet increasingly severe government mandated restrictions on NOx and particulates planned by the EPA and other environmental agencies around the world.
    The principal market in the U.S. for an integrated NOx/Particulate reduction system will be fleet operators of diesel powered vehicles. Diesel engines are now the engine of choice in well over 30% of all new European passenger vehicles, with close to 5 million new such vehicles manufactured annually.
    The Company's strategy in the diesel pollution control market is to combine its patented NOx reduction technology with other particulate reduction systems to offer a single integrated OEM, replacement or retrofit exhaust system that dramatically reduces all the key pollutants associated with diesel engines. The Company believes that regulatory authorities will increasingly favor the use of after-engine exhaust treatment systems to control emissions.
    The Company is in the business of developing NOx reduction systems for the automotive market together with appropriate catalytic converters designed to operate effectively with the Company's patented products.

Safe Harbor Act Disclaimer

    The statements contained in this release and statements that the company may make orally in connection with this release are not historical fact and are forward-looking statements within the meaning of the private securities Litigation Reform Act of 1995. Actual results may differ materially from those forward-looking statements, as such statements involve risks and uncertainties that could significantly impact the company's business and the actual outcome and results may differ materially.