CAP.L Regulatory News (CAP)

For immediate release 24 May 2011

Clean Air Power Ltd

("Clean Air Power" or "the Company")

Australian Product Launch

Clean Air Power (AIM: CAP), the developer of Dual-Fuel™ combustion technology that enables heavy-duty diesel engines to operate on a combination of diesel and natural gas, is pleased to announce that the Company has launched its Genesis Edge Dual Fuel Volvo FM13 Euro5 product in Australia.

Australia is a mature Dual Fuel market and our existing Caterpillar product, which has sold over 200 units, is reaching the end of its life cycle having been operational since 2001. As such, the Volvo Genesis Euro 5 product which started trials with Murray Goulburn in December 2010 and was certified for sale in May 2011 addresses the increasing future market demand in Australia and will in time replace our Caterpillar product. Murray Goulburn has now ordered an additional 6 units for immediate delivery.

Commissioning delays of a Tasmanian LNG plant affected 2010 sales but the plant is now up and running, 6 refuelers have been commissioned which cover Tasmania and the operators are ordering additional installations including two Volvo Genesis for trials & demonstration.

In total Clean Air Power has having received orders for 15 new units in the last month with a total order value of around £470,000. Clean Air Power has a local presence in Australia with support staff in both Perth WA and Melbourne

Commenting on the product launch, John Pettitt, CEO of Clean Air Power, said:

"The increasing number of orders that we are receiving in Australia for our Genesis EDGE installations underpins the growing confidence that the market has in our product. We now have a fleet of 22 Dual-Fuel vehicles operational in Tasmania which represents nearly 50% of LNG vehicles on the road in the State. The Tasmanian market alone is capable of sustaining 120 vehicles so we believe that there is a significant opportunity to grow our revenues within this important market as understanding of and confidence in our product continues to gain traction."

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Notes to Editors

About Clean Air Power

Clean Air Power is the developer and provider of Dual-Fuel™ combustion technology for heavy duty diesel engines. Dual-Fuel™ engines substantially cut fuel costs and carbon emissions without sacrificing the original engine's characteristic efficiency or reliability. Clean Air Power is well positioned to assist corporations and governments to deliver on their environmental commitments while at the same time reducing transport operators overheads.

About Murray Goulburn

Murray Goulburn Co-operative Company Limited ("Murray Goulburn") operate approximately 170 trucks, with up to 400 drivers, managing over 3 billion litres of milk, Murray Goulburn operates milk collection depots out of 7 sites throughout Victoria, Australia. In 2009/10 the fleet travelled over 21 million kilometres and carried approximately 3 billion litres of milk as well as finished goods.

Further information on Clean Air Power is available at www.cleanairpower.com