September 24, 2009 (FinancialWire) — Clean Diesel Technologies, Inc. (NASDAQ: CDTI), the clean-tech emissions reduction company providing sustainable solutions to reduce emissions, increase energy efficiency and lower the carbon intensity of on- and off-road engine applications, received a NASDAQ Staff Deficiency Letter on September 15, 2009 as a result of recently reported board of directors changes.

The company was notified that it fails to comply with NASDAQ Listing Rule 5605(c) (4) (A) because it does not have at least three audit committee members, all of which must be considered independent by NASDAQ standards, and Listing Rule 5605(b) (1) because its Board does not have a majority of independent directors.

These deficiencies occurred on August 28, 2009 when John J. McCloy II, who had been a member of the board and the audit committee resigned, leaving the audit committee with two members and the board with three independent directors and three non-independent directors.

The company was given a cure period to regain compliance: the earlier of the next annual meeting of stockholders or August 28, 2010, or, if the next annual stockholders’ meeting is held before February 24, 2010, then no later than February 24, 2010.

Commenting on the letter, Michael Asmussen, Clean Diesel’s CEO and president, stated: “The notice was fully anticipated by the company’s board of directors which, as previously announced, remains fully engaged in the process of recruiting an appropriate new director to both cure the deficiencies promptly and assist the company in effectively executing its strategic vision.”

An indicator will be broadcast over NASDAQ’s market data dissemination network noting the company’s non-compliance. The indicator will be displayed with quotation information related to the company’s securities on NASDAQ.com, NASDAQTrader.com and by other third-party providers of market data information until the non-compliance is cured.

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