CAP.L Regulatory News (CAP)

13 June 2013

Clean Air Power Limited

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

Trading Update

Clean Air Power (AIM:CAP), the developer and global leader in Dual-Fuel engine management software for heavy duty vehicles, today announces that continued demand for its European Dual-Fuel™ products has resulted in customers having placed more than 250 orders with either Clean Air Power or our European OEM partner for Dual Fuel systems. This compares to 300 system sales during the year ended 31 December 2012.

It is apparent there are constraints on expected production levels of methane-diesel vehicles by our European OEM partner, which has been increasing production of standard diesel Euro 5 compliant vehicles ahead of the introduction of Euro 6 emissions standards in Europe in 2014. These production constraints have lengthened lead times and reduced availability for customers looking to buy diesel vehicles with the intention to retrofit them with our Genesis-EDGE product. Whilst these factors are likely to impact sales of our Dual-Fuel™ products in 2013 they will increase the number of Euro 5 vehicles in the market available to retrofit with our Genesis Edge product in 2014.

Clean Air Power's plans to develop the Russian market are progressing well. Russia is an important market for the Group as there is no switchover to Euro 6 emissions standards in 2014. In addition, Russian gas companies have implemented clear strategies to develop natural gas as a road fuel and are investing heavily in gas refuelling infrastructure, which is expected to lead to an increase in demand for natural gas vehicles. In the year to date, Clean Air Power has continued to make significant progress developing a Genesis-EDGE product suitable for the important US market and the Group intends to exhibit the first prototype vehicle at the Alternative Clean Transportation EXPO 24-27 June 2013. The US represents a significant and growing opportunity for Clean Air Power as the increasing availability and relatively low cost of natural gas drives ever greater customer demand for natural gas vehicles.

John Pettitt, Chief Executive of Clean Air Power said:

"Demand in Europe for Dual-Fuel™ technologies has been translating into solid orders for our products in 2013 and, as we approach the half year, orders are close to the level of sales seen for the full year in 2012. However, production priorities at our OEM partner have negatively affected management's view of expected short term sales. Nevertheless, the trend towards the adoption of natural gas vehicles continues worldwide, driven by cost savings, reductions in emissions and the expansion of refuelling infrastructure. In Russia, President Putin has set out ambitious plans to support and dramatically increase the penetration of natural gas vehicles throughout the country whilst in the US, the abundance of domestically produced natural gas and increasing investment in new refuelling stations by major gas supply companies is driving customer demand. Our plans to develop these key markets are progressing well and in the US our new Genesis-EDGE product will soon enable us to service this demand and we have already received interest from a number of major fleet customers."

For further information, please contact:

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.

Initially founded in the USA in 1991, around £50m has been invested in developing the technology with the result that 65 patents are currently held or pending. The holding company of the Group is based in Bermuda with operational subsidiaries in the UK, the USA and Australia. The Group was admitted to the AIM market of the London Stock Exchange in February 2006.

Further information on Clean Air Power is available at www.cleanairpower.com