19 September 2014

Clean Air Power Ltd Aston Way Leyland

Lancashire PR26 7UX United Kingdom

Tel: +44(0) 1772 624499

Fax: +44(0) 1772 436495 www.cleanairpower.com

Clean Air Power Limited ("Clean Air Power" or the "Company") Trading Update

Clean Air Power (AIM:CAP), the developer and global leader in compression-ignited natural gas engine management systems for heavy-duty engines, today provides an update on trading and its outlook for the year ending 31 December 2014.
Whilst there have been some notable recent successes, including the Letter of Intent announced 10
September 2014, current trading has been very challenging. The introduction of Euro 6 emissions standards in Europe at the start of 2014 means that opportunities are now consolidating around a small number of operators who continue to run large fleets of Genesis-EDGE compatible Euro 5 vehicles. Whilst the Genesis EDGE system continues to prove its ability to generate attractive fuel savings in customer trials, it is increasingly difficult to predict with any certainty the timing or quantum of future orders in Europe.
The challenging European market coupled with unexpected technical delays in achieving EPA certification and the first sales of the US Genesis EDGE Dual-Fuel product mean that full-year results are expected to be significantly below market expectations.

John Pettitt, Chief Executive of Clean Air Power said: "Our business is in a challenging transitional period in which our focus is moving from a European market at the end of its product lifecycle towards two new, sizable and attractive markets in Russia and the US where we are preparing product launches. As we manage this transition there will be a short-term impact on sales but the long-term opportunity for Clean Air Power as a design, development and delivery partner on OEM and Tier 1 compression-ignited natural gas engine programs, remains significant. This potential was demonstrated by the recent Letter of Intent with a global truck manufacturer to commence the first phase of a production development program for an engine for the South East Asian market."

Clean Air Power Limited

Registered in England No. 4765070

Registered Office: Aston Way, Leyland, Lancashire PR26 7UX, United Kingdom

Enquiries: Clean Air Power Tel: +44 (0)1772 624 499

John Pettitt, Chief Executive Officer
Neill Skinner, Chief Financial Officer

Citigate Dewe Rogerson Tel: +44 (0)20 7282 2867

Malcolm Robertson
Chris Gardner

Panmure Gordon Tel: +44 (0)20 7886 2500

Corporate Finance

Freddy Crossley / Atholl Tweedie

Corporate Broking

Tom Salvesen

Peat & Co Tel: +44 (0)20 3540 1721

Charlie Peat
Andy Cuthill

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 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.

Clean Air Power Limited

Registered in England No. 4765070

Registered Office: Aston Way, Leyland, Lancashire PR26 7UX, United Kingdom

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