KleenAir Moves and Prepares to Enter Power Generation Market

    FULLERTON, Calif.--June 14, 2001--KleenAir Systems Inc., (OTCBB:KAIR) has completed its move from Newport Beach to a new 18,000 square foot facility in Fullerton, CA. It is sharing this facility with its licensee, Extengine Transport Systems and Ecologic Engine Testing Laboratories, who are installing a range of chassis and engine dynomometers used for testing automobile emissions.
    The move is part of the Company's preparation for progressing from its current development stage to commercialization of its NOxMaster(R) NOx and particulate reduction system, its SCR/DOC catalytic converter systems and its Oxidizing Particulate Traps (OPT).
    The next stage for launching product on the California market is securing appropriate verification and certification of its products from the California Air Resources Board. This involves extensive use of automobile emissions testing facilities. This will be made more practical and cost effective by this current move.
    Included in the range of test equipment is a large engine dynomometer suitable for testing equipment intended to run 1 and 2 megawatt power generators. Since the escalation of the California energy crisis, the Company has received an increasing number of inquiries for NOx and particulate reduction systems to meet emission standards for standby power generation units in this size range. The Company believes its automotive systems can be upsized to meet this requirement and will be more cost-effective than current emission reduction systems.
    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).