CAP.L Regulatory News (CAP)

Clean Air Power Ltd

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

Trading Update and Notice of Results

Revenues Significantly Ahead

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 trading during the first half of the financial year has been encouraging with revenues significantly ahead of the prior year. During the first 6 months of the current financial year, revenues were £3.9 million (2011:£2.1 million) with over 100 systems(2011: 37 systems) being delivered during the period.

Furthermore a continuation of the promising interest in the European products has resulted in a significant increase in orders. The Company has now had a total of 250 orders during 2012 for both the Genesis EDGE system and European OEM product. This includesorders for the new version of the Genesis EDGE product, using a Renault Magnum 13 litre engine to meet demand from a new customer from Spain.

The Genesis EDGE system is being very well received by customers in Europe. As a result Clean Air Power has initiated an evaluation of the Genesis EDGE product for the North American market, to complement the current OEM discussions and meet customer demand in the short to medium term. The Directors believe the low relative cost of natural gas is compelling additional benefit in driving the large and still growing market demand throughout North America for natural gas vehicles. The Board looks forward to updating shareholders on the results of the evaluation in due course.

Results for the 6 months to 30 June 2012 are due to be announced during the week beginning 3 September 2012.

John Pettitt, CEO of Clean Air Power, said:

"We are gaining very encouraging traction in the European Market with increasing customer demand, a growing order book and a new product offering. Thanks to the increasing customer interest we are confident of the outlook going into the second half of the financial year. We have a clear strategy for the North American market both in the short and medium term and will provide further updates following the evaluation study "

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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.