CAP.L Regulatory News (CAP)

For immediate release 30 March 2012

Clean Air Power Ltd

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

Navistar update

Development Milestone Achieved and Payment Received

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 Navistar Inc. has paid Clean Air Power $1.3 Million USD for the work performed during the Concept Readiness phase of a natural gas development project.

Clean Air Power and Navistar have been working together since 2010 and following the good progress that has already been made, are now working toward an agreement to develop a production version of the International ProStar Class 8 truck using a MaxxForce® 13 Dual-Fuel™ engine.

Commenting on this movement, Clean Air Power's CEO, John Pettitt, said: " We are pleased that progress is being made towards a possible future program and that Clean Air Power's costs, incurred in the Concept Phase, have been reimbursed by Navistar"

Ken Lucas, General Manager, Alternative Fuels Business at Navistar added: "Navistar is excited about this technology and we believe that a Dual-Fuel™ MaxxForce® 13 is the key to major adoption of heavy-duty natural gas vehicles in the US."

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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 Navistar, Inc

Navistar International Corporation (NYSE: NAV) is a holding company whose subsidiaries and affiliates produce International® brand commercial and military trucks, MaxxForce® brand diesel engines, IC Bus™ brand school and commercial buses, Monaco® RV brands of recreational vehicles, and Workhorse® brand chassis for motor homes and step vans. The company also provides truck and diesel engine service parts. Another affiliate offers financing services. Additional information is available at www.navistar.com/