Clean Power Technologies Inc.
OTC Bulletin Board : CPWE
FRANKFURT : C1L

Clean Power Technologies Inc.

August 05, 2008 11:30 ET

Clean Power Signs MoU With East West Express Inc.

CALGARY, ALBERTA--(Marketwire - Aug. 5, 2008) - Clean Power Technologies Inc. (OTCBB:CPWE) (FRANKFURT:C1L), developer of a unique heat recovery and hybrid power system to reduce vehicle emissions, is pleased to announce that it has signed a Memorandum of Understanding ("MOU") with East West Express Inc. ("East West"), a trans-Canadian freight trucking company. Under the terms of the MOU, East West will provide Clean Power a Road Load Data Collection Vehicle ("the Vehicle") for the purpose of detailed research on its existing refrigerated trailer fleet.

Both parties have agreed to work together with the ultimate objective of making the East West truck fleet more energy-efficient by installing Clean Power's Clean Energy Storage and Recovery (CESAR) system, which takes otherwise wasted heat from the exhaust of a conventional combustion engine and modifies it through a heat recovery system to generate clean steam power for both motive and auxiliary power.

Abdul Mitha, President and CEO of Clean Power, said: "The transport industry is increasingly taking a lead in addressing fuel efficiency and environmental issues and, with rising fuel costs, East West has long been considering a means of finding an effective and efficient solution. We are delighted to be working with such a forward-looking corporation and we are confident that our technology will generate direct economic and compliance benefits for our end users, as well as environmental benefits for us all."

Mr Sandy de Waal, President of East West, said: "Since establishing our business in 1997 we have never experienced such rapidly increasing fuel prices, which are now by far our biggest cost; well ahead of wages, capital equipment and maintenance combined. As an operator with 100 refrigerated food trailers, we could get a crucial competitive edge by using Clean Power's technology which provides a potential fuel savings of 40% per unit, whilst minimizing vehicle emissions and helping control ever-escalating grocery bills for consumers. We are extremely grateful to be given early access to a technology that provides a step-change in fuel economy and environmental compliance, compared with the incremental benefits of the other options we have been exploring. East West looks forward to a long and successful cooperation with Clean Power."

Research using the vehicle is an important step towards understanding the operational and environmental performance parameters of the cooling units currently used in East West's fleet of trucks and refrigerated trailers. From this data Clean Power will refine the design and packaging of its exhaust heat capture, accumulator and steam engine to ensure that, together, they meet or exceed the specifications of the existing diesel engine system.

The overall global truck market is growing at 8% each year and there are already over 7 million refrigerated trailers in the US alone. These trucks and their refrigerated trailers, or 'reefers', are now subject to US anti-idling legislation, introduced in 2006 that prevents drivers from idling their engines for more than five consecutive minutes except in cases of maintenance or repair. As such, there is an immediate and significant market demand for hybrid technologies to power auxiliary systems in the truck cab (such as air conditioning, heating, lighting and entertainment) as well as refrigerated trailers. Clean Power's CESAR system requires no separate fuel source, no high-maintenance components, such as batteries or capacitors, and no major scientific or infrastructural step-changes (such as hydrogen for fuel cells).

CESAR's flexibility has enabled Clean Power to research and design a range of variants for different end applications - from cars and trucks to boats and, even, military vehicles (where heat capture has anti-detection benefits). The solution proposed for East West is a dual system unit which will operate when the truck is running with the refrigeration trailer attached, and also when the trailer is in stand-alone mode - for instance, keeping goods cool at a supplier depot or distribution centre.

In addition to initial cooperation on the Vehicle's data capture, loading and cycle analysis, the MOU also provides for future discussions, potential collaborations and commercial relationships surrounding the resulting CESAR system, subject to its development to the satisfaction of East West.

ABOUT CLEAN POWER TECHNOLOGIES

Clean Power Technologies is committed to developing hybrid fuel technology and alternative fuel for a range of vehicles, including locomotives, heavy trucks and light cars. The Company's proprietary technology significantly reduces pollution through its Clean Energy Storage and Recovery (CESAR) system, which takes otherwise wasted heat from the exhaust of a conventional combustion engine and modifies it through a heat recovery system to generate clean power for the vehicle.

The Company boasts a highly experienced engineering team, whose vision and technical capabilities are driving the development and implementation of this unique hybrid fuel technology.

Clean Power Technologies operates out of its development facility in Newhaven, East Sussex. In 2006, testing of the CSEAR system began on a Mazda RX8 passenger vehicle engine, with trials on a second identical engine commencing later that year. In June 2007 testing also began on a Caterpillar C15 diesel engine to explore applications, such as auxiliary power and trailer refrigeration, within the industrial vehicle and truck industries. Testing on the CESAR process began in late October 2007, with initial results already recording a 40% improvement in fuel efficiency.

The Company listed on XETRA on the Frankfurt Stock Exchange in October 2006, and is also traded on the OTC Bulletin Board in the US.

About CESAR

Clean Power's Clean Energy Storage and Recovery (CESAR) technology is designed to increase vehicle fuel economy and reducing emissions by capturing, storing and reusing otherwise wasted heat from the exhaust of a conventional combustion engine. A heat exchanger captures waste energy, which is then stored in the form of steam in an accumulator, for 'on demand' use either in the same 'primary' engine, or in a secondary vapour engine. Power can be produced solely by the secondary vapour engine even after the primary combustion engine has shut down.

The CESAR system can be used to power auxiliary truck systems, such as trailer refrigeration and cab cooling or heating, in regulatory 'no idle' and 'quiet' zones. In addition to initial truck applications, CESAR can be further applied in Clean Power's well developed passenger car programme in addition to having longer-term potential in the locomotive and marine sectors.

ABOUT EAST-WEST EXPRESS INC.

East-West Express is a national freight trucking company, predominantly transporting refrigerated food products across Canada.

East-West Express was established in 1997 with 7 trucks. Ten years later the business has grown rapidly to a fleet of 45 highway trucks, 20 city trucks and 100 refrigerated trailers. It is based in Edmonton, Alberta, Canada.

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