CAP.L Regulatory News (CAP)

4 July 2013

Clean Air Power Limited

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

First prototype Dual-Fuel™ vehicle for the US market exhibited at the Alternative Clean Transportation EXPO

Clean Air Power's prototype vehicle makes first Dual-Fuel™ coast-to-coast crossing of the US

Clean Air Power (AIM:CAP), the developer and global leader in Dual-Fuel engine management software for heavy duty vehicles, is pleased to announce that it has exhibited its first prototype vehicle retrofitted with a Genesis-EDGE Dual-Fuel™ product suitable for the important US market at the Alternative Clean Transportation EXPO, Washington DC., 24-27 June 2013.

The prototype vehicle, a 425hp Volvo VNL retrofitted with a US version of Clean Air Power's patented Dual-Fuel™ Genesis-EDGE product, successfully made the 2,720 mile journey across the US from the Group's manufacturing facility in Poway, California to the Convention Center in Washington DC. The truck, which runs primarily on liquid natural gas ("LNG"), started with a full tank of LNG in San Diego and refuelled at a LNG filling station in Dallas during what was the first coast-to-coast crossing of the US by a LNG/Dual-Fuel™ vehicle. 1,000 miles were covered in Dual-Fuel operation with the balance in diesel; demonstrating the system's flexibility and the benefit Dual-Fuel provides for fleet operators when gaps in LNG supply are encountered. The natural gas refuelling network currently spanning the US is incomplete but is expanding rapidly as investment in new refuelling stations by major gas supply companies increases.

The exhibition was very successful with more than 150 visitors to the stand, which featured video of the truck's journey to Washington DC. The production of the first prototype US Dual-Fuel™ vehicle is an important milestone for Clean Air Power and demonstrates that its program to develop a US Genesis-EDGE product certified to US2010 emissions levels is on track and at an advanced stage. The launch of a US Genesis-EDGE product will enable the Group to meet the rapidly growing demand for natural gas vehicles in the US. The Group has already received interest from a number of major fleet customers and anticipates that the first trial vehicles will be on the road and undergoing validation by the end of 2013, with production commencing in early 2014.

In addition to the Genesis-EDGE product, considerable interest was also shown in Clean Air Power's legacy Caterpillar C15 system. This system can be fitted to either existing trucks or new trucks using a Glider kit (a complete truck less the engine, transmission and rear axle) and fitted with a re-manufactured C15 Dual-Fuel™ engine and transmission from the same period. The Caterpillar C15 heavy duty diesel engine has a substantial installed base and continues to be a popular choice for an important niche of US fleet operators.

John Pettitt, Chief Executive of Clean Air Power said:

"The production of a Genesis-EDGE retrofit product for the US market is a key strategic goal for Clean Air Power that has the potential to generate significant revenue and further validate the technology to potential OEM partners. I am delighted that we have been able to exhibit at EXPO our first prototype Dual-Fuel™ vehicle which moves us an important step closer to delivering on this objective. The US represents a large and growing opportunity for Clean Air Power as the abundance of domestically produced natural gas and increasing investment in new refuelling stations by major gas supply companies drives ever greater customer demand for LNG vehicles. Our development programme for a US Genesis-EDGE product has reached an advanced stage and I am now confident that we are on track to deliver a product capable of servicing this demand."

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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.

Initially founded in the USA in 1991, around £50m has been invested in developing the technology with the result that 65 patents are currently held or pending. The holding company of the Group is based in Bermuda with operational subsidiaries in the UK, the USA and Australia. The Group was admitted to the AIM market of the London Stock Exchange in February 2006.

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