European OEM Production Update

Clean Air Power Ltd

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

European OEM to start production with Clean Air Power's technology

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 production of the European OEM product which integrates Clean Air Power's Dual-Fuel™ technology within its engine is set to commence. This is a significant milestone that has now been successfully achieved and marks a turning point for Clean Air Power.

The Company announced on 15 September that there had been a temporary delay to the production in the European OEM factory due to short term issues which have now been resolved and, subject to a minor software validation, production is planned to commence in January 2012 with the initial sales volumes expected to be higher than the Board's earlier estimations.

Commenting on the plan to initiate production, John Pettitt, CEO of Clean Air Power, said:

"As anticipated, we are now set to start production and we look forward to our technology being installed on an OEM production line. The market is increasingly recognising the economic and environmental benefits of our technology and we look forward to being able to capitalise on this increasing demand."

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.