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KleenAir and Extengine Transport Systems Complete License Agreements

9 March 2000

KleenAir and Extengine Transport Systems Complete License Agreements

    NEWPORT BEACH, Calif.--March 8, 2000--KleenAir Systems Inc. (OTCBB:KAIR) and Extengine Transport Systems LLC jointly announced that License Agreements have been signed between them for the use of KleenAir's new NOxMaster(TM) NOx Reduction System and its Catalytic Converters in China, India and for the United States' Urban and School bus retrofit market.
    Extengine has also committed to increasing its investment in KleenAir. The License Agreements are anticipated to yield substantial economic benefits for KleenAir and Extengine.
    Extengine has made arrangements to provide test and evaluation turnkey exhaust after-treatment systems in China and will be working with KleenAir on this project. Another Extengine project being finalized involves a diesel-powered passenger bus, provided by a major transportation authority, which will shortly be equipped with KleenAir products and road tested for emission reduction efficiency.
    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 owns worldwide patents on its system. The NOxMaster(TM) NOx Reduction System together with its new NOxMaster(TM) Diesel Catalytic Converter, in addition to achieving dramatic reductions of NOx, also substantially eliminates CO and Hydrocarbons as well as significantly reducing particulates.
    KleenAir is in the business of developing NOx reduction systems for the automotive market together with appropriate catalytic converters designed to operate effectively with KleenAir'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.