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KleenAir Value Confirmed at More Than $175 million

29 August 2000

KleenAir Value Confirmed at More Than $175 million

    NEWPORT BEACH, Calif.--Aug. 29, 2000--KleenAir Systems Inc., (OTC Bulletin Board: KAIR) recently announced that Valuation Consulting of London, England, has now completed the valuation of its U.S. NOx reduction patents and business at a total value of more than $175 million. This valuation assumes an eventual penetration of between 1% and 2% in the automotive exhaust after-treatment market segment.
    Test and evaluation programs are currently underway in Europe and the United States and are expected to lead to commercial contracts late this year or early next year.
    The valuation is important in identifying the underlying intrinsic value of the Company's issued stock as being approximately $15.44 per share through its ownership of unique patents. The Company believes these patents significantly strengthen the Company's control of nitrous oxide (NOx) reduction technology involving the injection of ammonia into the exhaust stream of vehicles and is a basis for determining appropriate licensing fees. The Company's strategy includes licensing its technology to appropriate automotive manufacturers in the U.S. and overseas.
    The principal partner of Valuation Consulting is Kelvin King, the founder of the Society of Share and Business Valuers in the U.K. and an associate of the Chartered Institute of Patent Agents. Among their governmental clients are the U.K. Treasury Department, the U.K. Department of Trade and Industry, the U.K. Department of Information Technology Services, the U.S. 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.