CAP.L Regulatory News (CAP)

15 Jan 2008 07:00

Clean Air Power Limited15 January 2008 For immediate release 15 January 2008 Clean Air Power Ltd ("Clean Air Power" or "the Company") New Order and Trading Update New Contract Win Clean Air Power Ltd (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 that it has received a neworder to provide 9 catalytic converters for a major manufacturer of gascompression equipment in the USA, the order is worth £0.5m. This order is duefor delivery in the first half of 2008 and will further strengthen the Company'semission reduction business. The contract increases the Company's order book for the coming year which nowstands at £2.7m for delivery in 2008. This represents a significant improvementon the same period last year when the corresponding order book was less than£0.5m. Trading Update The Dual-FuelTM division of the Company has delivered £1m of the previouslyannounced £2.4m order to Mitchell Corp Pty in Australia and will deliver theremaining £1.4m in the first half of 2008. Additionally Clean Air Power willdeliver the remaining £0.25m of the recently announced UK order for RobertWiseman Dairies in the first half of 2008. Furthermore, the steady growth of Clean Air Power's components divisioncontinues and the orders on hand for this division amounted to around £0.5m atthe beginning of 2008. The main objective of the Company remains to enter into a cooperation agreementwhereby its Dual- FuelTM technology is adopted by a major manufacturer. CleanAir Power recently announced that considerable progress has been made with amajor manufacturer. Although a formal agreement has not yet been reached, theCompany continues to believe that the discussions could lead to a formalcooperation agreement being reached in the first half of 2008. Lastly, at the end of 2007, the Company had £1.8m in cash exceeding the board'sexpectation of £1.3m. The Company continues to pursue a number of fundraisingoptions and is making progress towards raising the necessary funds in the firstquarter of the year. These funds will be used to provide working capital tosupport existing operations, to support further in-house product development andto provide resources for potential manufacturer cooperation activity. John Pettitt, CEO, commented "Clean Air Power is very encouraged by the interestbeing shown in the Genesis Dual-FuelTM product in both the UK and Europe. TheCompany enters 2008 with a strong order book and we expect to maintain thismomentum going forward. The environmental and financial drivers for our productsremain compelling and the goal in 2008 is for Clean Air Power to build on thesignificant recent progress to realise the full potential of its 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 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