November 24, 2009 (FinancialWire) — Clean Diesel Technologies, Inc. (NASDAQ: CDTI), the cleantech emissions reduction company providing sustainable solutions to reduce emissions, increase energy efficiency and lower the carbon intensity of on- and off-road engine applications, reported on a series of strategic developments consistent with its new product strategy, including an order from Metroline, a leading London bus operator, valued at approximately $528,000.

Following the decision to implement a strategic course change earlier this year, Clean Diesel has made significant progress in implementing its new product-related focus for the global retrofit market. Today, the company reported the achievement of several milestones in its effort to further develop its Purifier e4 product technology for more widespread use within the United Kingdom  and the London Low Emission Zone .

First, Clean Diesel entered into a supply agreement with Hug Engineering to provide Diesel Particulate Filter  substrates and related technology to the UK bus market. The agreement is a result of the complementary nature of their respective technologies and represents a key enabler for Clean Diesel’s penetration of new market segments such as London bus operators.

Second, after successful completion of the Millbrook London Transport Bus Cycle testing, Clean Diesel’s DPF technology was accepted for use on London’s bus vehicles. Subsequent trials at Metroline demonstrated improved reliability and durability resulting in significant cost savings. Clean Diesel successfully demonstrated how its Purifier e4 technology reduced NO2 emissions, when compared to those observed with the alternative technology in London bus applications. Simultaneously it cut particulates by over 95% thereby reducing the impact of bus emissions on air quality and removing emissions of black carbon, which increasingly are seen as a major contributor to global warming.

Third, the Clean Diesel Purifier system featuring Hug’s filter technology was granted reduced pollution certification, allowing for a reduction in the amount of vehicle excise duty payable by an operator. This, together with the acceptance for London’s buses, increases commercialization prospects for Clean Diesel, as UK bus operators who use the technology can benefit from the annual reduction in vehicle excise duties, reduced operational costs and improved emissions.

Finally, based on the results of the extensive test program and fleet trials, Metroline, a member of ComforDelGro, the world’s second largest land transport group, selected Clean Diesel’s Purifier e4 technology for integration into their London fleet beginning November 2009. The contract is valued at approximately $528,000.

Ian Foster, Engineering director of Metroline Travel Ltd., commenting on the contract, said, “Metroline has been working with CDT towards an alternative solution on exhaust filtration for the last 18 months. Clean Diesel’s Platinum Plus and Purifier particulate filter technology was the most efficient and effective solution for our inner city operating conditions. Metroline’s technical expectations have been exceeded by employing Clean Diesel’s technology. We’ve also observed the additional benefits of extending the longevity of particulate filtration components and offering a significant maintenance and running cost reduction.”

Michael Asmussen, president and CEO of Clean Diesel said, “These agreements and certifications validate our new business strategy of focusing on the development of differentiated products based on proven intellectual property that provide value to the global marketplace. While this approach is time and resource intensive, our team can take pride in their effective execution of the strategy by winning the business. It’s a strategy we will continue to use both in the UK and throughout the global markets.”

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