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European Rights to KleenAir NOx Reduction Valued At $65M

4 May 2000

European Rights to KleenAir NOx Reduction Technology Valued At $65 Million

    NEWPORT BEACH, Calif.--May 4, 2000--KleenAir Systems, Inc. (OTCBB:KAIR) announced that the European rights to its NOx reduction patents and business have been recently valued at $65 million by Valuation Consulting of London, England.
    The principal partner of Valuation Consulting is Kelvin King, the founder of the Society of Share and Business Valuers in the UK and an associate of the Chartered Institute of Patent Agents. Among their governmental clients are the UK Treasury Department, the UK Department of Trade and Industry, the UK Department of Information Technology Services, the US Treasury Department, the IRS and the Government of Alberta. Their corporate clients include AEA Technology, Texas Instruments, Pioneer Electronics, Sony and Waste Management.
    KleenAir has a unique computer controlled ammonia system, the NOxMaster(TM), which, when injected into the exhaust stream, interacts with NOx produced during combustion. The result converts environmentally hazardous NOx into harmless nitrogen and water. The company's technology works with gasoline, diesel, CNG and LPG fuels to reduce whatever levels of NOx are generated by the combustion of these fuels. Current EPA and California Air Resources Board attention is focusing on environmental pollution resulting from the use of diesel fuels.
    The purpose of the valuation was in connection with the establishment of NOxMaster Ltd., which is preparing for the test and evaluation of NOxMaster(TM) Emission Control Systems by a number of European companies, and to set the parameters for future licensing agreements in the European Common Market. The Company believes that a valuation of the U.S. rights would be of a similar magnitude and has accordingly undertaken an appropriate valuation exercise.