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KleenAir Systems, Inc Intrinsic Value of KAIR Stock At Over $12 On Diluted Basis

11 July 2000

KleenAir Systems, Inc Intrinsic Value of KAIR Stock At Over $12 On a Fully Diluted Basis

    NEWPORT BEACH, Calif. - KleenAir Systems, Inc., recently announced that the European rights to its NOx reduction patents and business have been valued at $65 million by Valuation Consulting of London, England.

    These rights have been further estimated to represent a world-wide potential value of over $150 million, an intrinsic value of over $12 per share on a fully diluted basis.

    The valuation is important not only in identifying the underlying intrinsic value of the stock through its ownership of unique patents, which the Company believes significantly strengthens the Company's control of nitrous oxide (NOx) reduction technology involving the injection of ammonia into the exhaust stream of vehicles, but also as a basis for determining appropriate licensing fees. The Company's strategy includes licensing its technology to appropriate automotive manufacturers in the US and overseas.

    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. In addition, the Company is testing its system in combination with advanced technologies that reduce particulates dramatically.