RNS Number:8503R
Clean Diesel Technologies, Inc
08 April 2008



  Clean Diesel Technologies Announces Licensing Agreement with Largest Diesel
                        Engine Exhaust Company in China


Milestone Agreement Opens Markets in China for Emissions Reduction Technologies



Stamford, CT - April 8, 2008 - Clean Diesel Technologies, Inc. (NASDAQ:CDTI;
XETRA:CDIA; AIM:CDT), the cleantech emissions reduction company, today announces
it has licensed its Wire Mesh Filter (WMF) technology to Headway Machinery Co.,
Ltd. (Zhucheng City, China), the largest commercial diesel engine exhaust
company in China.


This agreement enables Headway to develop the WMF technology in order to provide
particulate matter (PM) emission reduction solutions to China-based truck
manufacturers. The objective for Headway is to bring China in line with the Euro
IV PM emission standards for light and medium duty trucks. China adopted the
Euro IV emissions standards on January 1, 2008. Clean Diesel, in return, will
receive an upfront licensing fee and royalties on all WMF units sold in China.


"This deal provides Clean Diesel comprehensive access to the world's second
largest automotive market," said Dr. Bernhard Steiner, President and CEO of
Clean Diesel Technologies. "This agreement reinforces the value of our
technologies as cost effective, robust emission control solutions for use
worldwide. We are very proud to be working with Headway Machinery."


Headway CEO, Mr. Pei-hai Gao said, "Headway is the largest commercial diesel
engine exhaust supplier in China. Combining our market reach with technologies
from Clean Diesel, a world leader in the development of emissions reduction
technologies, will help provide a cleaner future for China. Our cooperation
combines the respective strengths of both parties, which includes deep market
penetration on the one hand and proven effective technology on the other." Mr.
Gao added, "As the world pays more attention to environmental matters, and as
China emphasises energy efficiency and pollution reduction, I am confident that
our cooperation will have a long, enduring future. I see great success and a
bright future for our two companies."


                                    - END -


About Headway Machinery

Headway Machinery, established in 1985, is based in Zhucheng City of the
Shangdong Province. The company is China's largest tier-one automotive diesel
exhaust supplier with market reach throughout China. For more information,
please visit www.headwaymachine.com.


About Clean Diesel Technologies

Clean Diesel Technologies (NASDAQ: CDTI) is a cleantech company providing
sustainable solutions to reduce emissions, increase energy efficiency and lower
the carbon intensity of on- and off-road engine applications. Clean Diesel's
patented technologies and products allow manufacturers and operators to comply
with increasingly strict regulatory emissions and air quality standards, while
also improving fuel economy and power. The Company's solutions, which are in
commercial use worldwide, significantly reduce emissions formed by the
combustion of fossil fuels and biofuels, including particulate matter (PM),
nitrogen oxides (NOx), carbon monoxide and hydrocarbons. Clean Diesel solutions
also reduce carbon dioxide (CO2) emissions, a key greenhouse gas associated with
global climate change.

Clean Diesel develops and manages intellectual property from original concept to
full-scale commercial deployment. Its offerings include ARIS(R) Selective
Catalytic Reduction (SCR); the patented combination of SCR and Exhaust Gas
Recirculation; hydrocarbon injection for emissions control applications;
Platinum Plus(R) Fuel-Borne Catalyst (FBC); the PurifierTM family of particulate
filter systems; and its Wire Mesh Filter particulate filter technologies. The
Company was founded in 1995 and is headquartered in Stamford, Connecticut. A
wholly owned subsidiary, Clean Diesel International, LLC, is based in London,
England. For more information, please visit www.cdti.com.

Certain statements in this news release constitute "forward-looking statements"
within the meaning of the Private Securities Litigation Reform Act of 1995. Such
forward-looking statements involve known or unknown risks, including those
detailed in the Company's filings with the U.S. Securities and Exchange
Commission, uncertainties and other factors which may cause the actual results,
performance or achievements of the Company, or industry results, to be
materially different from any future results, performance or achievements
expressed or implied by such forward-looking statements. Readers are cautioned
not to place undue reliance on these forward-looking statements, which speak
only as of the date hereof.

For further information:


Clean Diesel Technologies, Inc.                        Charles Stanley Securities

Dan Skelton                                            Nominated Advisors

+44 1883 629 090

dskelton@cdti.com                                      Philip Davies

                                                       Tel: +44 20 7149 6457

                                                       philip.davies@csysecurities.com


Crescendo Communications, LLC                          Matter Communications

(U.S. investor contact)                                (Technical press inquiries)

David K. Waldman or Klea Theoharis                     Jacqueline Volovich

+1 212-671-1020                                        +1 978-499-9250 x236

cdti@crescendo-ir.com                                  Jackie@matternow.com


Innovator Capital Limited

(Financial press inquiries)

Shaun Brown

Jade Summer

+44 20 7297 6840

jade.summer@innovator-capital.com.


                      This information is provided by RNS
            The company news service from the London Stock Exchange
END

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