CAP.L Regulatory News (CAP)

30 Nov 2007 07:01

Clean Air Power Limited30 November 2007 For immediate release 30 November 2007 Clean Air Power Ltd ("Clean Air Power" or "the Company") Market Update Clean Air Power Ltd (AIM:CAP) the developer of Dual-FuelTM combustion technologythat enables heavy-duty diesel engines to run on a combination of both dieseland natural gas provides an update on its recent progress. In recent months Clean Air Power has seen increased sales momentum for Dual Fuelproducts within its current product range. The Company has been encouraged bytwo, previously announced significant incremental orders from existing customersevidently enjoying the benefits of the patented Dual Fuel technology. InAustralia Mitchell West Pty Ltd decided to order an additional 20 conversionsfollowing from the earlier 50 conversion order. In the UK Robert Wiseman Dairiesplaced an order for 20 conversions after their trial of 2 vehicles earlier inthe year. The Company's Australian income continues to grow as the installation activityto deliver the Mitchell's contract accelerates. The steady growth of the components business continues and this week the Companyis pleased to announce it has won a £0.44m components order for delivery betweenMarch 08 and February 09. The main objective of the company remains to enter into a cooperation agreementwhereby the Dual- FuelTM technology is adopted by a major manufacturer. CleanAir Power has been in discussions with a number of manufacturers over the pasttwo years and now is pleased to report considerable progress has been made witha manufacturer. Although a formal agreement has not yet been made the companyhas reason to believe that the discussions could lead to a formal cooperationagreement being reached in the first half of 2008. It is the intention of Clean Air Power to raise funds before the end of the yearto provide additional working capital to support existing operations and earlypreparation for potential manufacturer activity. The Company believes that this represents a clear indication that the widermarket is reacting positively to the increased sales momentum being achieved byClean Air Power's Dual-FuelTM technology. John Pettitt, CEO, commented "Clean Air Power is very encouraged that bothmanufacturers and operators alike are recognising the clear benefits of theCompany's technology. As diesel prices and focus on carbon and greenhouse gasemissions increase we believe the market is increasingly appreciating thecompelling nature of the Company's Dual-Fuel technology." For further details please contact: Clean Air Power Tel: +44 (0) 1494 527110John Pettitt, Chief ExecutivePeter Rowse, Finance Director Buchanan Communications Tel: +44 (0)20 7466 5000Charles Ryland/Ben Willey Canaccord Adams Ltd Tel: +44 (0)20 7050 6500Robert Finlay/Erin Needra This information is provided by RNS The company news service from the London Stock Exchange