Update on Sainsbury's and Navistar

Clean Air Power Ltd

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

Update on Sainsbury's and Navistar

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 they have received an additional order from Sainsbury's, a major UK supermarket. The new order is for an additional 25 units of Clean Air Power's Genesis EDGE Dual-Fuel™ retrofit system which will be in service by early Q4, 2012.

This latest order will see Sainsbury's expand their fleet of Dual-Fuel™ trucks to 50, 49 of which will be commissioned this year demonstrating their continuing confidence in Clean Air Power's Genesis EDGE Dual-Fuel™ system.

The trucks will operate using bio-methane gas which has been produced from landfill waste, helping to reduce CO2 emissions and fuel costs in comparison with conventional diesel vehicles.

So far, during the current year to 31 December 2012, the Company has had a total of 170 orders for both the Genesis system and European OEM product. This compares to a total of 70 systems orders during the whole of 2011.

US Market

Clean Air Power is continuing discussions with US OEMs about a product for the US market. While there is significant market demand and has been publicly expressed appetite for a Dual-Fuel product with Clean Air Power the discussions with OEMs are taking longer than expected. In addition it was announced on 7 June 2012 that Navistar has instigated a major management restructure and the Directors of Clean Air Power can have no certainty as to the outcome or effect of these changes.

Following the success of the Genesis EDGE proprietary system in Europe, the Directors are evaluating the development of this system for the US market, to complement the current OEM discussions and meet customer demand in the short to medium term.

John Pettitt, CEO of Clean Air Power, said:

"We have been working with Sainsbury's for the last 3 years and this additional order reinforces their belief in our Genesis Edge Dual-Fuel™ systems. We are pleased to continue working with them. The opportunities in the US market are very large and the Directors remain focussed on delivering a product to capitalise on this market demand."

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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.