Clean Diesel Technologies Announces Placing of New Shares to Raise $1.2 Million, -pounds-0.8...

Business Editors

STAMFORD, Conn.--(BUSINESS WIRE)--Oct. 2, 2002

Clean Diesel Technologies Inc. (EBB:CDTI)(AIM:CDT/CDTS)(CDT) today announced that it has raised approximately $1.2 million ((pounds)0.8 million) by the issue of 604,349 new common shares at $2 (130p) per share to

The proceeds of the placing will be used for the continued development and commercialization of the company's products, Platinum Plus(R) diesel fuel catalysts and ARIS(R) 2000 NOx reduction systems, and for general working capital purposes.

Jeremy Peter-Hoblyn, chairman & CEO commented that as a result of the recently announced successful Platinum Plus fuel economy trials and the favorable emission testing program results at Southwest Research Institute, the company is moving forward with its CARB and EPA verification programs. The CARB verification testing is expected to commence later this quarter.

Application has been made for the new shares to be admitted to trading on the Alternative Investment Market (AIM) of the London Stock Exchange. The new shares are being issued in reliance on Regulation S under the U.S. Securities Act and, because they are subject to transfer restrictions for a period of time, may not be resold to persons in the United States or to U.S. persons but may otherwise be traded in the United Kingdom without other restrictions. These shares will trade on AIM under ticker/symbol CDTI.

About Clean Diesel Technologies Inc.

Clean Diesel Technologies is a specialty chemical company with patented products that reduce emissions from diesel engines while simultaneously improving fuel economy and power. Products include Platinum Plus(R) fuel catalysts and the ARIS(R) 2000 urea injection systems for selective catalytic reduction of NOx.

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 statement 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.

Note to Editors: Platinum Plus and ARIS are registered trademarks of Clean Diesel Technologies Inc.