Caterpillar Forms Alliance with CleanAIR Systems to Reduce Emissions

New alliance between Caterpillar® and CleanAIR Systems offers customers a complete emissions solution for existing machines and engine applications.

Santa Fe, NM – June 18, 2008 - Caterpillar, Inc., the world's leading manufacturer of construction and mining equipment, clean diesel and natural gas engines and gas turbines, announced on June 17th the selection of CleanAIR Systems, Inc. of Santa Fe, New Mexico, as the Caterpillar strategic alliance partner for emissions control products. CleanAIR’s reduction technology will be installed on existing Caterpillar commercial engine applications to reduce diesel particulate matter, hydrocarbons, carbon monoxide and NOx; positioning CleanAIR Systems as the preferred vendor of choice for custom-designed retrofit products.

The alliance encompasses CleanAIR’s proprietary technology, custom engineering capability and the company’s use of integrated manufacturing in producing diesel particulate filters, diesel oxidation catalysts, three-way catalysts and selective catalytic reduction catalysts. Caterpillar will provide system integration capability, engineering and marketing support, as well as assistance to enable CleanAIR to meet growing demand from the broad Caterpillar customer-base.

Established in 1993, CleanAIR Systems designs and manufactures complete emissions control systems, including the PERMIT™ Filter, verified by the California Air Resources Board (ARB) for Level 3 reduction (greater than 85%) of exhaust particulate from prime power and emergency generators. Verified by ARB in 2003, CleanAIR’s PERMIT™ Filter met stringent CARB Level 3 standards years before other technologies, becoming the longest-selling, verified diesel particulate filter (DPF) technology currently on the market for stationary engines. CleanAIR’s line of emissions control products also includes an exclusive license for technology developed by Los Alamos National Laboratories.

“CleanAIR and CAT are a perfect fit,” said Michael Roach, President of CleanAIR Systems. “Due to our extensive product base and established performance history in emissions control, Caterpillar feels our company has what it takes to become a member of the CAT family. The alliance will increase our market exposure as well as introduce CleanAIR products to Caterpillar dealers around the world.”

The Caterpillar-CleanAIR agreement allows Caterpillar dealers to more effectively meet customers’ stringent air quality requirements by offering a responsive and competitive solution. With the ability to sell CleanAIR’s retrofit systems, CAT dealers can now offer a customized product for a specific application, along with the latest in product technology. The Caterpillar dealer network also has direct access to dedicated online product support through the CleanAIR CAT Dealer Web Portal recently developed by CleanAIR Systems as part of the company’s joint marketing effort with Caterpillar. Future ventures include a traveling product demonstration and regional dealer events.

The relationship between CAT and CleanAIR Systems is part of a long-term strategy that combines the strengths of both companies, creating a formidable team to deliver cost-effective solutions to customers’ increasingly complex emissions challenges.

For more information, visit CleanAIR Systems at www.cleanairsys.com.

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About CleanAIR Systems:
Established in 1993, CleanAIR Systems is a technology-based corporation manufacturing emissions control systems with worldwide distribution. CleanAIR’s products are designed to control air pollution such as diesel particulate matter and NOx, for internal combustion engines and gas turbines. Visit CleanAIR Systems online at www.cleanairsys.com.

About Caterpillar:
For more than 80 years, Caterpillar Inc. has been making progress possible and driving positive and sustainable change on every continent. With 2007 sales and revenues of $44.952 billion, Caterpillar is the world’s leading manufacturer of construction and mining equipment, diesel and natural gas turbines. The company also is a leading services provider through Caterpillar Financial Services, Caterpillar Remanufacturing Services, Caterpillar Logistics Services and Progress Rail Services. More information is available at www.cat.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.