Half Yearly Report

KLEENAIR SYSTEMS INTERNATIONAL PLC

(AIM: KSI)

Unaudited interim accounts for the six months ended 31 December 2011

Chairman's Statement

Introduction

The last Chairman's Statement was issued in November 2011 and accompanied the annual report and accounts for the year ended 30th June 2011. These accounts relate to the 6 month period ended 31st December 2011.

Financial Results

The accounts for the period to 31 December 2011 show an operating loss of £79,000.

Changes to the Board of Directors

On 31 December 2011, Jubeenh Nazhat, a qualified solicitor was appointed as company secretary following the resignation of Sarah Posner. Miss Nazhat was further appointed non-executive director to the board on 12 January 2012.

Business and Corporate Strategy

The Company's new policy of investing in environmental and renewable energy sectors in the UK and Europe has been successfully adopted and the Company's investment in Inspirit Energy continues to perform in line with management expectations.

The Company is evaluating a number of additional opportunities with a view to making a recommendation to shareholders in due course. In the meantime, the Company's working capital requirements have been pared back to a minimum until an appropriate opportunity can be presented to shareholders.

Commenting on the Company's development, The Chairman John Gunn commented:

"This has been another eventful year for the Company and we hope to strengthen our equity position in the market and plan to invest into a second company in due course".

John Gunn

Chairman

26 March 2012

Comprehensive Income Statement

for the six months ended 31 December 2011

 Statement of Financial Position as at 31 December 2011

Statement of Changes in Equity

For the six months ended 31 December 2011

Statement of Cash Flow

For the six months ended 31 December 2011

Notes to the Interim Financial Information

1. General Information

Kleenair Systems International Plc is a company incorporated in England and Wales and quoted on the Alternative Investment Market of the London Stock Exchange.

2. Basis of Preparation

These interim financial statements have been prepared in accordance with International Financial Reporting Standards ("IFRS") as adopted by the European Union and on the historical cost basis, using the accounting policies which are consistent with those set out in the Company's Annual Report and Accounts for the period ended 30 June 2011. This interim financial information for the six months to 31 December 2011, which complies with IAS 34 'Interim Financial Reporting', was approved by the Board on 26 March 2012.

3. Significant Accounting Policies

The accounting policies applied are consistent with those of the annual financial statements for the period ended 30 June 2011, as described in those annual financial statements.

4. Segmental Analysis

The Company's primary reporting format is business segments and its secondary format is geographical segments. The Company only operates in a single business and geographical segment. Accordingly no segmental information for business segment or geographical segment is required.

5. Earnings/(loss) per Share

The loss per ordinary share is based on the Company's loss for the period of £79,000 (31 December 2010 - £57,000; 30 June 2011 - £164,000) and a basic and diluted weighted average number of ordinary shares of £0.001 each in issue of 57,262,325 (31 December 2010 - basic and diluted 37,004,285; 30 June 2011 - basic and diluted 45,690,636).

6. Reconciliation of operating loss to net cash outflow from operating activities.

7. Called up Share Capital

The issued share capital is as follows

8. The unaudited interim financial information for period ended 31 December 2011 do not constitute statutory accounts within the meaning of Section 435 of the Companies Act 2006. The comparative figures for the period ended 30 June 2011 are extracted from the statutory financial statements which have been filed with the Registrar of Companies and which contained a qualified audit report.

9. Copies of this interim financial information document are available from the Company at its registered office at 2nd Floor, 31 Davies Street, London, W1K 4LP. The interim financial information document will also be available on the Company's website www.kleenair-systems.com.