The CleanAIR PERMIT™ Filter Verified for Prime Power Generators

Santa Fe, NM – November 14, 2006 – CleanAIR Systems, Inc. has received verification for prime power generators by the California Air Resources Board (ARB) for their PERMIT diesel particulate filter as a Level 3 diesel emission control device. According to an Executive Order dated November 6th, ARB verifies that the PERMIT Filter reduces emissions of diesel particulate matter by 85 percent or greater for use in stationary prime generators with particulate matter (PM) levels of up to 0.2 g/bhp-hr.

Prime power stationary generators are designated as power sources operating as a principal source of power and are usually in continuous operation for long periods of time. These include generators used in remote areas as a primary power source, as well as those used for self-generation by corporations, schools or hospitals producing their own power.

The ARB also extended verification of CleanAIR Systems’ PERMIT filter until 2009 for use on stationary emergency generators to include all applications tested or certified to particulate matter (PM) levels of up to 0.2 g/bhp-hr. Emergency generators operate usually less than one hundred hours per year and are used as supplemental or back-up power generation in case of power loss.

For complete verification information on the PERMIT diesel particulate filter and engine operating criteria, the Executive Orders and Attachments can be found on the ARB website at: http://www.arb.ca.gov/diesel/verdev/vt/stationary.htm.

Established in 1993, CleanAIR Systems, Inc. located in Santa Fe, NM, is a technology-based corporation manufacturing emissions control systems with worldwide distribution. Their products are designed to control air pollution for on- and off-road vehicles, as well as stationary machinery and power generation. For contact information, visit www.cleanairsys.com.

CleanAIR CARB Verification - Executive Orders. Read more ...

New Mexico Company Exhibiting at International Conference

Santa Fe, NM – November 1, 2006 – When you flip on a switch, do you know where your electricity comes from? Or what kind of environmental impact it has on the earth? Many of us take for granted how electricity is generated, the fuel used in the process of generation and the pollution produced as a result of burning this fuel. For those attending Power-Gen International 2006 in Orlando, Florida from November 28-30, the focus is all about the where, when and how of power generation. For one New Mexico company, it will be an opportunity to present their state-of-the-art emissions control technology to an international audience.

CleanAIR Systems designs, tests, and manufactures equipment to substantially reduce air pollution produced by vehicles, stationary engines and power plants. For the past four years, a major part of CleanAIR’s business has been helping power plants, hospitals and companies using diesel stationary generators as a back-up power supply, to decrease their emissions of particulate matter (black smoke), carbon monoxide and hydrocarbons. Most recently CleanAIR Systems has developed technology to also reduce emissions of nitrogen oxides or NOx. A major problem in the fight against air pollution and global warming, NOx is produced by all power generation plants that burn fuel to make electricity (coal, natural gas, diesel, and even biodiesel).

As an exhibitor at Power-Gen, CleanAIR Systems will present their emissions control technology to over 16,000 attendees from all parts of the globe. Billed as the world’s largest conference on power generation, the exhibition will also boast 1,000 exhibitors representing the full scope of this market segment from coal-fired power plants to solar energy. According to the Power-Gen website, “Power-Gen International focuses on educating the industry on key trends and technologies impacting power generation, including operation, maintenance, construction, upgrading and design of natural gas and coal plants, plus renewable energy alternatives. Exhibits feature the latest in power products and technologies.”

Established in 1993, CleanAIR Systems, Inc. located in Santa Fe, NM, is a technology-based corporation manufacturing emissions control systems with worldwide distribution. Their products are designed to control air pollution for on- and off-road vehicles, as well as stationary machinery and power generation.

CleanAIR Systems Installs Pollution Control Filters on BP North Sea Oil Platform

Santa Fe, NM – August 21, 2006 – What does a BP oil platform located 150 miles north of Aberdeen, Scotland in the Central North Sea and an emissions control company from the American Southwest have in common? The answer is the desire for a cleaner environment!

Last November, CleanAIR Systems, Inc. was surprised to receive an email from BP, one of the world’s largest oil companies, asking about emission control products. As operator of the Eastern Trough Area Project (ETAP), BP was concerned at the possibility of diesel exhaust produced by the platform’s two stationary generators entering the crew’s living and office space through the ventilation intake during ETAP’s annual “Turn Around” (TAR), which had traditionally been addressed by temporary means. A brief period each year, the “Turn Around” is the time when essential maintenance and modifications are made to the platform. During these few weeks, diesel stationary generators are used for power rather than the platform’s larger gas turbines, saving BP a considerable amount in operating costs.

As a global leader in alternative energy and environmental issues, BP understood the need to provide a safe and healthy living environment for their 100-member crew. That’s why they contacted CleanAIR Systems, Inc. According to Ross Lloyd, BP Project Coordinator, “CleanAIR Systems was chosen because they were the only supplier with the ability to manufacture regenerating catalytic units of this size that were approved and tested on our Caterpillar 3516 engines. They were also verified by the highest emissions standard in the world – the CARB (California Air Resource Board) regulations. The aim was to provide a permanent solution to the risk of hydrocarbon exhaust entering the accommodations during TAR.”

Facing a variety of technical challenges, the engineers at CleanAIR Systems, in tandem with engineers at BP and Wood Group, went to work designing a filter/silencer system for the ETAP stationary generators to reduce emissions of particulate matter, hydrocarbons and carbon monoxide by 90% in accordance with tough CARB standards. Using an integrated manufacturing approach, CleanAIR’s CARB-verified PERMIT™ diesel particulate filters were installed within a silencer containment. The systems needed to meet stringent safety regulations pertaining to all oil platforms in the North Sea and tight space restrictions on ETAP. Due to the compact installation area, which also limited access to the internal filters housed within the exhaust silencer, a unique design was the only solution. CleanAIR engineers came up with an unusual one-of-a-kind construction, allowing for the front end of the silencer to be removed for direct contact with the CleanAIR PERMIT™ Filters.

Another factor was time! CleanAIR had to work fast and be on target to guarantee installation during the platform’s specified “Turn Around”. The timeline from initial discussion, to design, manufacture, shipping and installation was a short eight months, with final installation taking place in July of 2006. The two filter/silencer systems, weighing over two tons each, were shipped by truck to Texas, then by cargo plane to ETAP.

In a recent email to CleanAIR Systems, Lloyd wrote: “Many thanks for all your input and patience – the success of this project means that a crew of 100 men can continue to sleep and work knowing that they are in a healthy environment, concentrating on bringing the ETAP platform – a producer of over 90,000 barrels of oil a day for the UK – back to full production level.”

Established in 1993, CleanAIR Systems, Inc. is a technology-based corporation manufacturing emission control systems with worldwide distribution. Their products are designed to control air pollution for on- and off-road vehicles, as well as stationary machinery.

The City of Manassas Sees a Clear Solution with CleanAIR

Santa Fe, NM – April 24, 2006 – When you see black smoke from a diesel engine billowing into the air, should you be concerned for your health? According to a recent report by the U.S. Public Interest Research Group (U.S. PIRG), the fine particle or “soot” pollution associated with diesel black smoke contributes to serious health conditions such as asthma attacks, strokes, heart attacks, and lung cancer. This could ultimately lead to the premature death of 70,000 Americans over the next 20 years, according to U.S. PIRG analysis, if levels of fine particle pollution are not reduced to recommended standards. Understanding the public health threat of particulate pollution, the City of Manassas Utility Department has taken action, making environmental concerns along with the health safety of their employees and customers a “top priority”. For a solution to eliminating visible black smoke and reducing fine particle pollution at the city’s power generation plant, Manassas turned to CleanAIR Systems, Inc.

After completing a two-year study, the Virginia Municipal Electric Association (VMEA), a seven-member purchase power group including the City of Manassas, established a pilot program in November of 2005 to install the first of sixteen regenerating (self-cleaning) exhaust filter/silencer systems on their diesel electric generators located at the VMEA Generation Plant in Manassas, Virginia. CleanAIR Systems of Santa Fe, New Mexico was contracted to design and manufacture the exhaust systems. After initial testing, Energy Services Manager, Brett Massey stated, “we are exceptionally pleased with the first filter. The test results are showing about a 90 percent reduction in visible emissions.” The installation of the remaining fifteen filter/silencer systems is scheduled for completion by the end of April.

An integrated manufacturer of diesel emission control systems since 1993, CleanAIR Systems approaches each project as a customized design, tailored to fit a client’s specific pollution requirements and installation space. With the VMEA’s stand-by generators, an emissions control system was needed to substantially decrease particulate matter (black smoke), carbon monoxide, hydrocarbons and the odor associated with these emissions. This was achieved by installing the CleanAIR PERMIT™ Filter, a regenerating catalyzed particulate filter, verified by the California Air Resources Board (CARB) to reduce more than 85 percent of particulate matter emitted by diesel emergency stand-by generators.

The filter works by trapping carbon particles within a catalyzed honeycomb ceramic substrate. When the engine exhaust temperature increases past a certain level, the filter self-cleans by oxidizing the particulate into harmless carbon dioxide, at the same time, decreasing other harmful gaseous emissions. “We are working towards a 0 percent opacity level by May,” says Jamie Hester, the Generation Supervisor at the power plant. “That means no visible black smoke.”

The Environmental Protection Agency (EPA) has designated many large metropolitan areas located in the Mid-Atlantic States, including several counties in Virginia and the District of Columbia, as having high levels of fine particle pollution, exceeding the daily national health standard. By lowering particle pollution by more than 90 percent at its power generation plant, The City of Manassas, along with CleanAIR Systems, is working to change this statistic, protect the public health of the county and help create a cleaner environment for Virginia.

CleanAIR PERMIT Filter Receives CARB Verification

Santa Fe, NM- June 10, 2003 - CleanAIR Systems, Inc. has received California Air Resources Board (CARB) verification of its PERMIT filter for 85 percent particulate reduction, Level 3, on stationary emergency diesel generator sets. This is the first and only verification given by CARB for stationary emergency diesel generator sets.

“Receiving the CARB verification means that CleanAIR Systems is now prepared to meet the needs of users of stationary diesel generator sets in California who are required to reduce emissions by CARB's Diesel Risk Reduction Rule,” said CleanAIR Systems President and CEO Michael Roach. “Furthermore, the proven exceptional performance of our PERMIT filter makes it the right choice for diesel emission control on any diesel engine used anywhere in the world.”

Particulate matter produced by diesel engines has become a major health issue, sparking governments at all levels and environmental organizations to call for the reduction of diesel particulate matter. In 1998, CARB identified particulate matter from diesel-fueled engines as a toxic air contaminant. As a result, in September 2000, the Board approved the Risk Reduction Plan for Diesel-Fueled Engines and Vehicles. The plan included a measure to reduce particulate matter from off-road compression-ignition engines, including sources such as stationary diesel generator sets. CARB’s Diesel Emission Control Strategy Verification program verifies those technologies achieving 85 percent or greater reduction in particulate matter as Level 3 technologies.

The Level 3 verification of the CleanAIR PERMIT filter applies to stationary generator sets with various model years and engine families manufactured by Caterpillar, Cummins, Detroit Diesel Corporation, Deutz AG, Navistar, Volvo Penta, Volvo AB, Komatsu, Isuzu, Lister-Petter, John Deere, Daewoo, Case Corporation and Alaska Diesel Electric.

Supplied individually or in a combined filter/ silencer package, the PERMIT filter can be easily retrofitted to any diesel engine application. In addition to particulate matter reduction, the PERMIT filter reduces carbon monoxide and hydrocarbon emissions by more than 90 percent.

CleanAIR Systems manufactures a complete line of particulate filters for a wide range of diesel engines. In addition, the company offers emissions control products for generator sets powered by natural gas and propane.

CleanAIR CARB Verification – Executive Orders. Read more …

CleanAIR Systems, Inc. to Retrofit School Buses and Fire Trucks with Emission Control Devices in Spokane, Washington

Santa Fe, NM- January 10, 2003 - CleanAIR Systems, Inc. was awarded a contract to retrofit 58 school buses and 27 fire trucks with its ASSURE™ diesel oxidation converter (DOC) in Spokane, Washington. CleanAIR's ASSURE™ DOC reduces diesel particulate matter by 25 percent and carbon monoxide and hydrocarbon by up to 90 percent. The project is funded by Avista Corp., a Spokane-based energy company. Seattle-based Western Peterbilt, Inc. will perform the installation of the replacement mufflers.

"CleanAIR Systems' participation in this project will benefit many people in Spokane in significant ways," said CleanAIR Systems President Michael Roach. "Retrofitting 85 school buses and fire trucks with our ASSURE™ DOC will not only help improve the air quality in the city, it will also protect school children, firefighters, emergency department personnel and patients from being exposed to increased levels of diesel emissions."

Most school buses and emergency vehicles are diesel-powered due to the fact that they are more fuel-efficient than gas-powered vehicles. However, diesel-powered vehicles emit 50 to 80 times more particulate. CleanAIR Systems provides a solution to this problem, offering a variety of emissions reductions systems for all diesel engines.

Several studies have found that children's exposure to diesel emissions when riding school buses can be as much as 16 times higher than the ambient exposure levels. Similarly, a study of firehouses in major cities found that firefighters are exposed to increased levels of particulates from diesel emissions while in the firehouse.

According to the American Lung Association of Washington, reducing toxic emissions from diesel engines will provide many benefits, including a reduction in lost school days for children and work days for parents and asthmatics, a decrease in hospital visits due to respiratory ailments, and a reduced cancer risk for the population.

Spokane is classified by the Environmental Protection Agency as a serious nonattainment area for carbon monoxide and a moderate nonattainment area for fine particulate. With work on an air quality maintenance plan that will show how Spokane will stay in attainment in the long term, along with the required two clean years back-to-back, the city hopes to complete the process of being redesignated from nonattainment to attainment status for carbon monoxide.

CleanAIR PERMIT™ FBC Filter Passes MSHA Tests

Catalyzed Particulate Filter and Diesel Fuel Additive Reduces Particulate by More Than 85%

Santa Fe, NM – January 7, 2003 – CleanAIR Systems, Inc. received notice from the U.S. Mine Safety and Health Administration (MSHA) that its new diesel particulate filter system passed tests to control toxic diesel particulate emissions in underground mines, including coal, metal and nonmetal mines. The CleanAIR PERMIT™ FBC Filter system is the only product of its kind on the market that reduces diesel particulate without increasing nitrogen dioxide (NO2) emissions and self-cleans at normal exhaust temperatures. Last year MSHA discovered that other diesel particulate filter systems cause significant increases in NO2 emissions and their use was prohibited in July 2002.

While one of the major drawbacks to using traditional precious metal catalyst coatings is an increase in NO2, CleanAIR Systems was the first in the industry to successfully develop a precious metal catalyst coating that does not increase this harmful emission. The precious metal catalyst greatly decreases emissions of poisonous carbon monoxide and toxic hydrocarbons, and enhances a fuel-borne catalyst to promote safe regeneration (self cleaning) of the filter under normal operating conditions. The CleanAIR PERMIT™ FBC Filter system uses this new catalyst formulation, designated FPA, which is applied to a ceramic filter, and a patented fuel-borne catalyst (FBC) supplied by Stamford, Conn.-based Clean Diesel Technologies, Inc. (CDT) (EBB: CDTI & AIM: CDT/CDTS). The CleanAIR PERMIT™ FBC Filter’s specially formulated precious metal coating is designed to take advantage of CDT’s platinum/cerium fuel-borne catalyst. “We’re proud to receive this approval based on the ability of this unique combination – the CleanAIR PERMIT™ joined with CDT’s fuel-borne catalyst – to provide more than 85 percent diesel particulate reduction while causing no increase in NO2 emissions,” said Michael Roach, President of CleanAIR Systems, a privately held company. “Other catalyst systems that use precious metals for regeneration cause significant increases in NO2, which is a strong lung irritant and especially problematic in underground mines. Still other filter systems, more expensive and time consuming than our combined system, require the filter to be removed for cleaning each night or plugged in and electrically regenerated overnight.”

MSHA regulations adopted in 2001 regarding emissions of diesel particulate matter (DPM), commonly known as soot, are the first legislation to control miners’ exposure to diesel particulate in U.S. mines. The regulations establish new health standards for underground mines that use equipment powered by diesel engines. Due to its sub-micron size, diesel particulate penetrates deep into human lungs and contributes to numerous respiratory problems. According to MSHA, underground miners are exposed to a higher concentration of diesel particulate than any other occupational group, and face a significantly greater risk of developing such diseases as lung cancer, heart failure, serious allergenic responses, and other cardiopulmonary problems. MSHA estimates that at least 10 cases of lung cancer per year will be avoided as a result of the regulations.

MSHA conducted rigorous tests on the CleanAIR PERMIT™ FBC Filter system on a laboratory reference engine and on a unit operating in a coal mine. MSHA lab tests, carried out on a Deutz F6L 912W over an ISO 8178 steady state eight-mode test, indicated the system reduced diesel particulate by 89 percent, reduced carbon monoxide by 86 percent, and did not increase NO2 . Standard EPA diesel fuel with 350-ppm sulfur content was used for testing.

A separate report from the National Institute for Occupational Safety and Health recently concluded that a combined catalyzed diesel particulate filter (CDPF) and fuel-borne catalyst was the best system for mines. “The use of a CDPF in combination with an FBC, if needed for regeneration, seems to be the most effective aftertreatment technology for reductions of DPM and gaseous emissions from the diesel exhaust,” reported the agency. It further noted that “some FBC’s, notably the Pt-Ce FBC, are effective at extremely low dosing levels.”

“The CDT Platinum Plus FBC has undergone extensive laboratory and field tests in the United States and Europe and is registered with the U.S. EPA for use in on-highway fuels,” said James Valentine, President and COO of CDT. “The FBC promotes better in-cylinder combustion by introducing minute amounts of platinum and cerium (Pt-Ce) catalysts into the engine leading to reduced soot loading to the filter. It also lowers the oxidation temperature of soot trapped in the filter allowing passive regeneration – or self cleaning – under normal operating conditions. The Platinum Plus FBC has been used in more than 800 units worldwide with more than 15 million miles of trouble-free service. The FBC is completely soluble and stable in fuel and is easily blended in bulk fuel or on site using automatic dosing equipment. Testing has shown no toxic or secondary emissions resulting from the use of the FBC.”

Besides mining applications, CleanAIR Systems and CDT have recently supplied the combined CleanAIR PERMIT™ FBC Filter system to refuse trucks, beverage delivery trucks, and stationary engines. CleanAIR Systems and CDT are also conducting field and engine dynamometer testing in support of verification under the California Diesel Risk Reduction Program. Recent tests of an on-highway diesel engine resulted in more than 90 percent reduction in diesel particulate and no increase in NO2 when the CleanAIR PERMIT™ FBC Filter and Platinum Plus FBC were used with ARCO’s ECD-1 ultra-low-sulfur diesel fuel on a 1998 heavy-duty diesel engine.

The companies will market to U.S. mines through the CleanAIR Systems distributor network and discussions are underway for distribution to overseas mining and tunneling sectors.

Certain statements in this news release constitute “forward-looking statement” within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements involve known or unknown risks, including those detailed in the Company’s filings with the Securities and Exchange Commission, uncertainties and other factors which may cause the actual results, performance or achievements of the Company, or industry results, to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date hereof.

Summary of MSHA Testing. Read more …

CleanAIR Systems, Inc. Awarded Contract to Retrofit City of Seattle Vehicles with Emission Control Systems

Santa Fe, NM- July 15, 2002 - CleanAIR Systems, Inc. has received a contract with the City of Seattle to retrofit more than 100 city-owned vehicles with its ASSURE™ diesel oxidation converter (DOC). The contract requires the retrofit of various types of work vehicles, including street sweepers, vactor trucks, dump trucks, and utility trucks, with CleanAIR's ASSURE™ DOC, which reduces diesel particulate matter, carbon monoxide and hydrocarbon emissions. Seattle-based Western Peterbilt, Inc. will perform the installation of the replacement mufflers.

"CleanAIR Systems is pleased to join forces with the City of Seattle and Western Peterbilt to help improve the air quality in the communities of Seattle," said CleanAIR Systems President Michael Roach. "This retrofit project indicates a major commitment toward creating a cleaner environment in and around Seattle in significant, measurable ways."

The City of Seattle is retrofitting its diesel vehicles as part of the region's Diesel Solutions Program, and as an initiative of its Environmental Action Agenda, launched by Mayor Greg Nickels in April, which aims to reduce diesel emissions from city vehicles by 50 to 90 percent. Last year, city-owned vehicles burned 818,773 gallons of diesel fuel.

According to the U.S. Environmental Protection Agency, and confirmed by Puget Sound Clean Air Agency monitoring, levels of toxic air pollution in the region are among the highest in the country, due in large part to diesel emissions from trucks, buses and ships. By implementing initiatives such as continued retrofitting of diesel vehicles and converting to ultra-low sulfur diesel fuel, the city hopes to reduce toxic air pollution substantially by 2005.

CleanAIR Systems Selected to Decrease Equipment Emissions on Construction of World’s Largest Container Port

Emissions control becoming hot topic in construction industry

Santa Fe, NM – June 10, 2002 - When Sully-Miller Contracting Co. won a $78 million bid for the Pier 400 project underway at the Port of Los Angeles, the South Coast Air Quality Management District (SCAQMD) approved their plan to mitigate the project emissions. The plan called for installing diesel oxidation catalysts and using ultra-low-sulfur fuel.

Sully-Miller Contracting is using a portable asphalt plant on the project that is able to process 500 tons of asphalt per hour. However, because the plant is powered by propane, rather than the SCAQMD-required natural gas, it is considered non-compliant. The company agreed to reduce emissions from other equipment on the project in order to mitigate excess emissions from the propane asphalt plant. Sully-Miller selected CleanAIR Systems, Inc. from among other major manufacturers to provide emission control products for diesel-powered construction equipment used on the site. A large generator set was equipped with CleanAIR Systems PERMIT™ filter, which is a catalyzed diesel particulate filter that reduces particulate emissions by 85 percent, and reduces carbon monoxide and hydrocarbons by more than 90 percent. Two Kocals, two pavers, six rollers and one small generator were equipped with CleanAIR Systems’ ASSURE™ converter, which reduces carbon monoxide and hydrocarbons by more than 90 percent, and particulates by 10 to 50 percent. In addition, some of the equipment operated on ultra-low-sulfur fuel.

“This project demonstrates our commitment to providing the construction industry with an effective, economical way to dramatically reduce diesel emissions,” said CleanAIR Systems President Michael Roach. “Clearly, environmental pressure is increasing in this industry. Our PERMIT™ filters and ASSURE™ converters are in use on thousands of vehicles and equipment, ensuring compliance with new, stringent regulations coming into effect.”

Emissions control has become a hot topic in the construction industry, especially in California. Many contractors in the state are closely monitoring California Air Resources Board’s (ARB) proposed regulatory standards that would mandate use of “state-of-the-art catalyzed diesel particulate filters and very low-sulfur fuel” on new off-road heavy-duty diesel vehicles. Further, proposed regulations would require existing off-road and stationary diesel-fueled engines to be retrofitted with diesel particulate filters and to use ultra-low-sulfur fuel. The proposed regulations would go into effect between 2005 and 2010.

Air pollution has been a problem for the communities surrounding the Pier 400 project, which for years have been exposed to diesel exhaust from trucks, container-handling equipment and cargo vessels. Scott Taylor of Justice & Associates, an environmental consulting firm, was selected to represent Sully-Miller’s interests on air pollution issues on this project. Among his roles is to make sure the company is in compliance with emissions regulations. He specializes in facilitating permitting processes and consulting on issues regarding air quality regulation.

“The unique feature about these CleanAIR Systems diesel oxidation catalysts (DOCs) is that they were built into the mufflers. That is, we ran down the OEM muffler part numbers and CleanAIR Systems provided replacement mufflers that had the DOCs built in. These hybrid DOC/mufflers were identical fit replacement units which made the change-outs pretty simple,” Taylor said. “Environmental pollution has been a contentious issue in the communities surrounding the Long Beach and Los Angeles Port areas driven recently by regional concerns about environmental justice. Sully-Miller’s decision to be the first to install engine exhaust controls on their Pier 400 project diesel equipment assured the regulating agencies that not only were the excess emissions resulting from the propane asphalt plant mitigated, but so were most of the paving emissions that would have been there anyway.”

The 300-acre Sully-Miller project, which will use more than 400,000 tons of hot-mix asphalt, involves grading, trenching, paving and installation of major utilities. When completed, the port will host the largest container terminal in the world, providing access to the world’s largest container and tanker ships.

CleanAIR Systems products reduce emissions from vehicles and equipment all over the world. Established in 1993, the company designs and produces emission control products for all diesel, gasoline, natural gas and propane engines. For more information about its products, call CleanAIR Systems at 1-800-355-5513 or (505) 474-4120, or visit the company’s Web site at www.cleanairsys.com.

CleanAIR Systems, Inc. Awarded Contract for Construction Equipment Retrofit Program

Project will make diesel equipment in Las Vegas Valley dramatically cleaner

Santa Fe, NM - December 10, 2001 - CleanAIR Systems, Inc. recently was awarded a contract to retrofit more than 50 heavy-duty diesel construction vehicles and equipment with its oxidation catalyst/muffler system. The “Diesel Demonstration Project” is the largest construction equipment retrofit project in the West, and the second largest in the nation. Sponsored by the Clark County Department of Air Quality, the project was created as an initiative toward reducing toxic emissions from diesel equipment in the Las Vegas Valley area of Nevada. More than 75 tons of carbon monoxide, 15 tons of volatile organic compounds and 2.2 tons of particulate matter will be eliminated annually.

CleanAIR Systems was selected from among other major manufacturers of emission control systems to supply products for this voluntary program, funded in full by Clark County through a grant provided by the state of Nevada. The product chosen for this project, CleanAIR Systems’ ASSURE™, is a combination oxidation catalyst and muffler system that replaces the engine’s original muffler. ASSURE™ reduces carbon monoxide by more than 95 percent, hydrocarbon (volatile organic compounds) by more than 95 percent and diesel particulate matter by 20 to 50 percent.

“The best thing that could come out of this retrofit project would be for the construction community to gain a familiarization with catalyst technology,” said David Hoch, project manager with the Clark County Department of Air Quality Management. “There are a lot of myths circulating about the side effects of catalytic converters. I want the companies involved in this project to be able to tell other construction companies that the catalytic converters had no bad side effects, that they were easy to install, caused no loss of power to the engine and were maintenance free for a long time.”

Mike Justice, owner of Justice & Associates, served as consultant to the construction companies involved in the project. After having the CleanAIR oxidation catalyst/muffler installed on a vehicle, one company immediately took its ready-mix concrete truck to a testing facility to determine if the device had caused the engine to lose power. According to Justice, testing proved that the device had no impact whatsoever on the engine’s performance.

Seven different companies volunteered for the project: Weaver Construction, Weaver Inc., American Asphalt and Grading Co., Rinker Materials, Nevada Ready Mix, RAMM Corporation and M&M Construction. Equipment such as bulldozers, scrapers, loaders, haul trucks and water trucks were retrofitted for use in a wide variety of road-building and other construction projects throughout Clark County.

“Our clients were interested in becoming better citizens,” Justice said. “They were criticized often for their equipment belching out dirty black smoke on construction sites. They wanted to take a proactive approach to reducing emissions.”

The “Diesel Demonstration Project” targets models of equipment manufactured prior to 1988, which have the heaviest polluting engines. CleanAIR Systems’ ASSURE™ will be installed on many makes and models of engines, including Caterpillar’s 3200, 3300 and 3400 series engines; and various models of engines by Cummins and DDC.

Clark County, one of the fastest growing metropolitan areas in the country, has paid a price for its booming development in the form of air quality. With about 20,000 acres under construction at any given time, the area has acquired a large concentration of diesel construction equipment. The exhaust produced by this equipment contains emissions of carbon monoxide, hydrocarbons and diesel particulate matter. The Environmental Protection Agency (EPA) classified the region as a “serious” nonattainment area for carbon monoxide and particulate matter. The county is on the EPA’s nonattainment list because levels of carbon monoxide and particulate matter persistently exceed the EPA’s maximum allowable concentrations for priority pollutants, above which, adverse health effects may occur.

Emissions from off-road diesel construction vehicles and equipment are currently not regulated in the state of Nevada. Many states, like Nevada, are closely monitoring developments in California, which is finalizing pending rules that could mandate emission control systems on all diesel vehicles. The proposed regulations would go into effect in 2006. Federal EPA rules that will require emissions reductions on heavy-duty diesel engines are expected to go into effect after 2006. According to David Hoch, the Clark County Department of Air Quality Management plans to conduct an emissions inventory and study of the overall diesel issues in Clark County in the near future. The department is considering creating an incentive program to encourage other companies to voluntarily retrofit construction equipment with emission control systems, such as those produced by CleanAIR Systems, before federal regulations go into effect.

“This project is very important to us for two reasons. First, it gives us an opportunity to familiarize equipment owners with our emission control systems. Second, we are able to help the community of Clark County take a big step toward improving its air quality,” said CleanAIR Systems President Michael Roach. “As one of the largest retrofit programs involving construction equipment, it has the potential to serve as an example to other metropolitan areas, demonstrating how diesel equipment can be made dramatically cleaner.

CleanAIR Systems, Inc. Awarded Contract to Retrofit School Buses with Emission Control Systems in Puget Sound

Project will reduce emissions of harmful diesel particulates by more than 90 percent

Santa Fe, NM – November 28, 2001 - CleanAIR Systems, Inc. recently was awarded a contract with the Puget Sound Clean Air Agency to retrofit school buses with diesel particulate filters and oxidation converters in Everett, Wash. The Puget Sound Clean Air Agency is funding the Everett Clean Diesel School Bus Retrofit Project, the first voluntary initiative under the agency’s Diesel Solutions Program, through a grant received from the Environmental Protection Agency (EPA). It is among the first EPA-funded, on-road retrofit projects to be executed.

“We are proud to participate in this project to help the community of Puget Sound improve its air quality,” said CleanAIR Systems President Michael Roach. “By the end of this year, hundreds of Everett school children will be riding to school on some of the cleanest buses in the world.”

CleanAIR Systems was selected from among other major manufacturers of emission control systems to supply products for this pilot program. The company will equip some of the school buses with its PERMIT™ filter, and others with its ASSURE™ converter. The PERMIT™ filter reduces particulate emissions by 85 percent, and carbon monoxide and hydrocarbons by more than 90 percent. The ASSURE™ converter reduces carbon monoxide and hydrocarbons by more than 90 percent, and particulates by 10 to 50 percent. In addition, the buses will be fueled with ultra-low-sulfur fuel. CleanAIR Systems is working with Durham School Services, owner of the bus fleet and the third largest student transportation contractor in the nation, to retrofit the buses by the end of 2001.

“The Everett Clean Diesel School Bus Retrofit Project is very important to us because it will demonstrate how a school bus fleet in our region can be made dramatically cleaner through the use of cleaner fuels and advanced technology retrofit devices,” said Dennis McLerran, executive director of the Puget Sound Clean Air Agency. “We are very excited about being able to demonstrate to school districts that these fuels and retrofit devices can make a big difference in how clean their fleets are. There is a growing understanding that diesel exhaust is a health hazard, especially to children, and this project will give very real benefits immediately to the school kids who ride on and play near these buses.”

As part of the Puget Sound Clean Air Agency’s Diesel Solutions Program, the Everett Clean Diesel School Bus Retrofit Project is the first of seven projects to be carried out. The Puget Sound Clean Air Agency, which serves King, Kitsap, Pierce and Snohomish counties in Washington, launched its Diesel Solutions program this year to make diesel vehicles in the region dramatically cleaner. The Diesel Solutions Program aims to reduce particulate emissions by 436 tons per year over the next five years. According to the agency, this would reduce 1,505 cases of respiratory symptoms in asthmatic children annually, and prevent 30 to 34 premature deaths each year.

Until this year, parts of the Puget Sound Clean Air Agency’s four-county region had been on the EPA’s nonattainment list because levels of carbon monoxide, ozone and particulate matter persistently exceeded the national ambient air quality standards. The EPA has established maximum concentrations for these priority pollutants, above which adverse health effects may occur. Although no longer classified as nonattainment, the area is now close to exceeding limits for particulate matter and ozone.