KleenAir Successfully Completes Phase 1 of London Taxicab Tests

    FULLERTON, Calif.--June 13, 2001--KleenAir Systems Inc., (OTCBB:KAIR) has successfully completed Phase 1 emission tests of its NOxMaster(R) NOx reduction system on a London TX1 taxicab. The combination SCR/DOC system achieved consistent and repeatable particulate reductions of 50 to 70% and 40 to 50% NOx reduction after implementing a zero ammonia slippage software program. Typical DOC products reduce particulates from 20 to 30% and NOx by 0 to 7%. Thus these results achieve more than double the usual expectation. The Company believes that its system for light-duty diesel powered vehicles represents a breakthrough in low-cost particulate reduction and should result in considerable market penetration for the product.
    The Company now intends to apply for Phase 2 funding from the Energy Savings Trust for the purpose of installing its NOxMaster(R) system on a partial fleet of in-service taxicabs for a field test on the streets of London. This is to verify safety, durability and continued emission reduction performance, which the Company believes will be as successful as has proved to be in the past. There are 40,000 such Taxicabs in the UK, and the Company believes that a successful Phase 2 program could lead to significant penetration of that market. The Company has also been encouraged to submit a proposal to test its heavy-duty version on London buses.
    KleenAir has appointed Fuel Parts Ltd. as its UK master distributor for all these products through its affiliated UK company NOxMaster Ltd. Fuel Parts has an excellent track record of servicing the replacement and retrofit markets for exhaust systems and catalytic converters. It provides installation and maintenance support to its dealers throughout the UK servicing clients with both on-road fleet vehicles and off-road equipment. Retrofit markets generate significant increased margin opportunities and the Company expects to achieve above average bottom line contribution from such sales.
    KleenAir has a patented unique computer controlled ammonia system, the NOxMaster(R), 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's catalytic converters and Oxidizing Particulate Traps (OPT) significantly reduce particulates as well as hydrocarbons (HC) and carbon monoxide (CO).