Volvo Product Launch

For immediate release 1 June 2011

Clean Air Power Ltd

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

Volvo Product Launch

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 Volvo's successful launch of their new Volvo FM MethaneDiesel truck

The launch of the Volvo FM MethaneDiesel, which integrates Clean Air Power's Dual-Fuel™ technology within its engine, follows the Supply and Development Agreement signed with Volvo Powertrain, a subsidiary of AB Volvo, in July 2010.

This product launch and sales start is the result of several years of development activity between Clean Air Power and Volvo. Volvo has been trialling the product since late 2010 and these field trials are due to conclude soon.

Early trial results indicate that incorporating Clean Air Power's Dual-Fuel technology into these truck engines delivers significant greenhouse gas emission reductions and fuel cost savings compared with standard diesel engines. Additionally these Dual-Fuel trucks are expected to be around 30-40% more energy efficient than equivalent spark ignited natural gas engines. The engines can use natural- or bio-gas as the main fuel and can also operate on only diesel, an important feature as gas distribution systems face many years of development.

The new technology allows users of heavy duty diesel powered vehicles to cut fuel consumption by 25%, meaning that a gas powered truck run on biogas can achieve up to 70% reduction in emissions of carbon dioxide compared with a conventional diesel engine. Furthermore, the price of natural gas is considerably lower than that of diesel, thereby offering significant financial savings which will be a core driver behind widespread understanding and commercial adoption of this technology.

The product roll-out is expected in Q4 this year, subject to the field trials delivering the expected results.

Commenting on the product launch, John Pettitt, CEO of Clean Air Power, said:

"We are delighted to have achieved this product launch with Volvo as our OEM partner integrating Clean Air Power's Dual-Fuel™ technology within its engine. This represents the achievement of a key milestone set out within our objectives when the Company came to market back in 2006.

Natural gas as a fuel source is really beginning to gain global traction within the transportation industry and we therefore feel that our collaboration with Volvo will lead to some meaningful revenues as we continue to progress the commercialisation of our patented and proven technology."

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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.

Further information is available at cleanairpower.com