CAP.L Regulatory News (CAP)

21 Sep 2007 07:01

Clean Air Power Limited21 September 2007 For Immediate Release 21 Sept 2007 Clean Air Power Limited ("Clean Air Power" or "the Company") Further Australian Order Clean Air Power Limited (AIM: CAP), the developer of Dual-FuelTM combustiontechnology that enables heavy-duty diesel engines to run on a combination ofboth diesel and natural gas, is pleased to announce another important order asthe expansion of its Australian operations continues.January 2007 saw the announcement of a significant order when Mitchell CorpAustralia Pty Ltd (Mitchell), a bulk logistics solutions provider, ordered 50systems worth a total of approximately £1.5m. The contract agreed also includedan option for a further 20 systems. Clean Air Power is pleased to confirm that Mitchell has now exercised its optionfor the further 20 systems along with additional Clean Air Power intercoolerproduct enhancements for their entire fleet of Dual-FuelTM vehicles. The totalincremental order value is around £0.9m, bringing the total Mitchell revenuefrom these orders to around £2.4m In August the company had reported initial delays to installations under thiscontract. These delays were due to technical issues on some of Mitchell'svehicles which had previously been fitted with Clean Air Power technology by athird party. Prior to the confirmation of the above order, these issues wereresolved under a collaborative engineering project involving Clean Air Power,Mitchell and Orbital Pty Ltd, a leading Australian automotive engineeringconsultancy. The project was mainly funded by the truck operators and AustraliaGreenhouse Office (AGO), a government body, and has resulted in manyimprovements to the Company's Australian software. Also in August, Clean Air Power advised of development of a new optional productavailable to its Australian Dual-FuelTM customers. This is a secondaryintercooler (SIC) improving the Dual-FuelTM product performance in conditions ofextreme temperature. Clean Air Power is pleased to confirm that Mitchell has nowordered 84 of these, 70 for the conversions ordered under the above contract anda further 14 for their existing Clean Air Power vehicles. Following completionof the collaborative engineering project, the rate of installation will now rampup with all conversions planned to be completed by mid 2008. The Australian truck market is one of the most demanding in the world with veryheavy gross vehicle weights and extreme ambient temperatures. The Company isencouraged by its ability to further prove its technology and achieve salesgrowth in such a demanding operating environment. Additionally, with arelatively immature gas supply infrastructure the considerable benefit of aClean Air Power Dual-FuelTM vehicle to operate on 100% diesel, if required,remains a significant benefit which applies in Australia as in all othermarkets. John Pettitt, CEO, says "We are delighted to receive this additional order fromMitchell which will help them achieve their financial and environmentalobjectives. Mitchell's commitment to natural gas will save around 15,000 tonnesof CO2 per year. The Clean Air Power Dual-FuelTM product is proven, the productbenefits are compelling and there is a strong spirit of cooperation with ourpartners and customers in Australia. Also the SIC new product development andthe resolution of Mitchell's earlier concerns demonstrates the strength andeffectiveness of our engineering team." For further information contact: Clean Air PowerJohn Pettitt, Chief ExecutivePeter Rowse, Finance DirectorTel: +44 (0)1494 527110 Canaccord Adams LimitedRobert FinlayErin NeedraTel: +44 (0)20 7050 6500 Buchanan CommunicationsCharles RylandBen WilleyTel: +44 (0)20 7466 5000 Notes to Editors:Clean Air Power is the developer and provider of Dual-FuelTM combustiontechnology for heavy duty diesel engines. Dual-FuelTM engines substantially cutfuel costs and carbon emissions without sacrificing the original engine'scharacteristic efficiency or reliability. Clean Air Power is well positioned toassist corporations and governments to deliver on their environmentalcommitments while at the same time reducing transport operators overheads. Further information on Clean Air Power is available at www.cleanairpower.com This information is provided by RNS The company news service from the London Stock Exchange