Trading Update

15 January 2015

Clean Air Power Limited

("Clean Air Power")

Trading Update

Clean Air Power (AIM:CAP), the developer and global leader in compression-ignited natural gas engine management software for heavy duty vehicles today issues a trading update for the full financial year ended 31 December 2014, based on unaudited figures.

Total revenues for the year were £6.8 million, marginally ahead of market expectations of £6.6 million.

The net cash position at year end is £2.1 million. Excluding timing differences, which were mainly payments budgeted for January 2015 but received in December 2014, the underlying cash position at year end was £1.4 million, ahead of expectations of £1.0 million.

John Pettitt, Chief Executive of Clean Air Power, said: "We are pleased to be able to report that our revenues for the year will marginally exceed expectations. Actions taken to control costs and tight management of cash resources has resulted in our cash position being stronger than anticipated thus providing additional headroom for the Company to continue to deliver on its strategy to transition the business to a design, development and delivery partner to OEMs and Tier 1 suppliers."

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About Clean Air Power

Clean Air Power designs, develops and delivers compression-ignited natural gas engines for heavy duty transport applications. Clean Air Power's patented MicroPilot and Dual-FuelTM technology enables engines to run on natural gas mixed with diesel (or any suitable combustion fuel) providing the "spark" that ignites the gas. Substituting natural gas for diesel cuts fuel costs, emissions of carbon, nitrous oxide and particulates whilst retaining the original engine's power, efficiency and reliability characteristics. Clean Air Power operates in the US, Europe, Russia and Australia and has two commercial divisions:

Dual-Fuel™ Vehicle Systems

Delivery of patented Dual-Fuel™ systems which include fully-interfaced systems developed in partnership with truck manufacturers and the Group's Genesis-EDGE system, developed in-house as an after-market solution. Dual-Fuel™ is a type of system that adapt diesel engines to run on a combination of diesel and natural gas whilst retaining engine's basic infrastructure. The Division sells systems to truck manufacturers for on-line assembly, approved partners for after-market installation or direct to customers through its own installation facilities. The Division also undertakes design and development work for governments and truck manufacturers on Dual-Fuel™ and next-generation MicroPilot systems.

Components

Design and manufacture of innovative hydraulic valves, injectors and filters for natural gas engines sold to truck manufacturers around the world.

Initially founded in the USA in 1991, around £50m has been invested in developing the technology with the result that 69 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.