Issue of Equity

RNS Number:4412S
Clean Diesel Technologies, Inc
25 November 2003


Clean Diesel Technologies, Inc.



NEWS RELEASE for November 25, 2003 at 2:30 am EDT and 7:30 am GMT (London time)

Contact:  Allen & Caron Inc                    or   Clean Diesel Technologies,
                                                    Inc.
          Jay F. McKeage (US investors)             James M. Valentine,
                                                    President
          [phone]; [e-mail]        David W. Whitwell, CFO
                                                    [phone]
          Len Hall (US media)
          [phone]; [e-mail]
          ------------------------------------
          Bankside Consultants
          Simon Bloomfield (UK media/investors)
          44 (0)20 7444 4140; [e-mail]


           CLEAN DIESEL TECHNOLOGIES RAISES ADDITIONAL $3.7 MILLION

                               (#2.2 MILLION)


Funds will support accelerated commercialization effort, additional EPA / CARB
verifications of CDT technologies and development of markets in Europe and Asia


STAMFORD, CT (November 25, 2003) ... Clean Diesel Technologies, Inc. (CDT) (EBB:
CDTI & AIM:CDT/CDTI) announced today that it has signed commitment letters with
several UK entities for the issuance of $3.7 million (#2.2 million) of CDT's
common stock at a price of #1.70 ($2.85) per share. CDT expects to receive
payment for the private placement on December 1, 2003. Including the private
placement completed in September 2003, with several existing UK based
shareholders and Mitsui & Co. Ltd's subsidiary PUREarth Inc., CDT has recently
raised total equity financing of approximately $7.5 million (net).


The proceeds of the fund raising will be used to accelerate commercialization of
the company's technologies, gain additional United States Environmental
Protection Agency (EPA) and California Air Resources Board (CARB) verifications,
widen the applicability of the Platinum Plus(R) technology, expand its markets
into Europe and parts of Asia and extend patent protection.


The Company has recently verified its Platinum Plus Purifier System under the
EPA's rigorous Environmental Technology Verification Program (ETV) for 40 to 50
percent diesel particulate reduction. The Purifier System consists of the
Company's patented Platinum Plus fuel borne catalyst (FBC) and a specially
formulated low cost diesel oxidation catalyst (DOC).


In addition to the verified Platinum Plus Purifier System, application for
verification of a catalyzed wire mesh filter (CWMF) system with FBC has been
made to both the EPA and CARB. Recent tests at Southwest Research Institute of
the new FBC/CWMF system generated over 65 percent particulate reduction and 75
percent reduction of hydrocarbons (HC) and carbon monoxide (CO). Once verified,
the FBC/CWMF combination will provide a strong Level 2 control technology under
CARB's diesel retrofit protocol.


James Valentine, CDT President & COO, commented, "These funds will allow us to
complete the required field trials and third party testing required by EPA and
CARB for verification, as well as to expand our sales and technical support
functions in both the US and internationally. We expect to begin to generate
significant revenues in the coming year". Valentine added, "Both the


FBC/DOC and FBC/CWMF systems will be targeted at school bus fleets, delivery
vehicles, refuse trucks, municipalities and some power-generation applications.
The verified systems will provide lower cost solutions to end users without the
problems of excessive NO2 generation from traditional, heavily-catalyzed
systems."


Along with expanding sales and marketing personnel, the Company expects to
establish several partnerships in the near future to gain wider distribution for
its verified emission reduction technologies.


The new CDT common shares will be issued in reliance on the exemption from
registration under Regulation S under the US Securities Act for offshore private
placements. Because the new shares are subject to transfer restrictions for a
period of time, they may not be resold to persons in the US or US persons, but
may otherwise be traded in the UK without other restrictions. Application for
the shares to trade on the Alternative Investment Market (AIM) of the London
Stock Exchange has been made and the shares will trade on AIM under the ticker
symbol CDTI.

J.M. Finn & Co has been appointed brokers to the Company in London.


About Clean Diesel Technologies, Inc.

Clean Diesel Technologies, Inc. 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. Platinum Plus and ARIS are registered trademarks of Clean Diesel
Technologies, Inc.


For more information contact Clean Diesel Technologies directly, or visit their
web site at www.cdti.com.


Certain statements in this news release constitute "forward-looking statements"
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.







                      This information is provided by RNS
            The company news service from the London Stock Exchange

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