RNS Number:8567M
Clean Diesel Technologies, Inc
27 June 2003


Clean Diesel Technologies, Inc.

300 Atlantic Street, Suite 702, Stamford, CT 06901-2522 Tel: (203) 327-7050 
Fax: (203) 323-0461


NEWS RELEASE for June 27 at 2:30 AM EST and 7:30 AM London Time

Contact:           Allen & Caron Inc       or    Clean Diesel Technologies, Inc.
                   Jay F. McKeage (investors)    James M. Valentine, President
                   (212) 691-8087                David W. Whitwell, CFO
                   jay@allencaron.com            (203) 327-7050
                   Len Hall (media)
                   (949) 474-4300
                   len@allencaron.com

     CLEAN DIESEL SIGNS CONTRACT TO BEGIN TESTING UNDER EPA'S ENVIRONMENTAL
                       TECHNOLOGY VERIFICATION PROGRAM(R)

  Low Cost Retrofit System Targeted for School Buses, Refuse Trucks and Local
                                Delivery Fleets

STAMFORD, CT (June 27, 2003) . . . Clean Diesel Technologies, Inc. (CDT) (EBB:
CDTI & AIM:CDT/CDTS) announced today that it has signed a contract with the
third-party administrator for the US Environmental Protection Agency (EPA) to
begin testing of one of its proprietary diesel retrofit technologies under the
Environmental Technology Verification Program(R) (ETV).  ETV is a federal
program designed to verify the emissions reduction claims of environmental
control technologies.  Under the ETV Program, suppliers of commercial diesel
retrofit technologies are required to submit an application to EPA documenting
expected emissions reduction performance and providing details of system
characteristics.  Acceptance of an application requires agreement with EPA on a
detailed test program conducted at an independent lab and includes testing of
both new and aged systems used in commercial service for 1,000 hours.

Testing of CDT's patented Platinum Plus(R) fuel borne catalyst (FBC) and diesel
oxidation catalyst (DOC) system  will be conducted at Southwest Research
Institute (SwRI) in San Antonio, TX.  Testing is scheduled to begin in July and
will be followed by a review of results by EPA and its third-party
administrator.  A report and letter of verification will be issued based upon
successful completion of the program.

According to James Valentine, President of CDT, "This system has shown over 35
percent particulate matter (PM) reduction in earlier screening tests at SwRI on
a medium-heavy duty diesel engine typical of engines used in school buses,
refuse trucks and local delivery vehicles. The testing at SwRI has been
structured to help fulfill some of the fundamental requirements of retrofit
verification under the California Air Resources Board protocol simultaneously,
so as to minimize duplication of testing efforts.

"Under EPA's Voluntary Retrofit Program, reductions in emissions from school
buses and corporate fleets are targeted under the Clean School Bus Program and
the Smartway Transport Program.  These programs generally require the use of
verified technologies to be eligible for federal and state funding," added
Valentine.

In the CDT system, the FBC reduces engine-out particulates by 15-20 percent
while the lightly catalyzed DOC provides another 15-20 percent reduction.  This
dual-action approach allows the use of a lightly catalyzed lower cost DOC which
also helps minimize the formation of unwanted NO2 in the exhaust gas.
Traditional heavily catalyzed systems typically give 20-25 percent PM reduction,
but can convert large portions of NOx to nitrogen dioxide, which is a strong
lung irritant.  The lower level of catalyst in the CDT system also makes it
applicable to normal sulfur fuel as well as ultra-low sulfur diesel.

The FBC generally provides a fuel economy improvement of 6-8 percent after an
engine conditioning period of 60 days.  This helps cover the cost of the FBC and
can help pay for the DOC over time.

Valentine also noted that "ETV sets rigorous standards for acceptance to the
program, including testing, field durability and in-use compliance.  While the
costs may be high for a small technology company, the program is appealing
because it establishes a level playing field for all manufacturers, large and
small, to step up to the plate for third-party testing."

Environmental Technology Verification Program is a registered trademark of the
US Environmental Protection Agency.  More information on the Program can be
found at www.epa.gov/etv/


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, visit CDT at www.cdti.com or
contact the Company directly.

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.

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            The company news service from the London Stock Exchange
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