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

Clean Power Technologies Inc.

June 15, 2009 10:44 ET

Clean Power Technologies Inc.: AGM & Operational Update

test truck fitted, patents qualified and landfill project underway

CALGARY, ALBERTA--(Marketwire - June 15, 2009) - 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 give an update on its operations, as provided to shareholders at its Annual General Meeting held in Calgary, Alberta, Canada, on Saturday 13 June 2009.

Clean Power Technologies is committed to developing hybrid fuel technology based on its proprietary technology - the Clean Energy Storage and Recovery (CESAR) system. CESAR significantly reduces pollution by harnessing otherwise wasted heat from the exhaust of a conventional combustion engine and modifying it through a heat recovery system to generate clean steam power.

The following resolutions were duly passed:

1. to elect the Members of the Board of Directors for the ensuing year - Abdul Mitha, Diane Glatfelter, Peter Gennuso, Michael Burns and David Anthony;

2. to approve the appointment of the firm of Child, Van Wagoner & Bradshaw, PLC as the Company's independent auditors for the fiscal year 2009;

3. to approve the 2009 Stock Option and Stock Award Plan (the "Plan") of up to 4,000,000 shares of the Company's common stock in the form of stock options and stock awards as compensation to employees, officers, directors and/or consultants of the Company; and

4. to transact such other business as may properly be brought before the Meeting, or any adjournment or postponement thereof.

Speaking at the AGM, Mr. Abdul Mitha (President and Chief Executive Officer), Mr. Mike Burns (Chief Technology Officer) and Mr. Marco Cuccinato (Control System Specialist) provided a comprehensive presentation on the significant operational milestones witnessed during 2008/9, which are summarized below.

Overview

At last year's AGM, on 15 May 2008, Clean Power reported that, as part of its co-development agreement, the Company was about to embark on a truck data collection program with Safeway Canada Inc. ("Safeway") on real delivery routes in and around the Calgary area. We are pleased to report that this exercise has been successfully completed, validating Clean Power's original duty cycle models, further strengthening the strategic partnership with this major North American grocery chain and accelerating Clean Power's steam hybrid development program.

Subsequent milestones include:

- the procurement, in September 2008, of a rolling road, atmospheric and vibration test equipment

- the purchase, in November 2008, of a Freightliner test truck similar to the one provided by Safeway for data collection

- the acquisition, in January 2009, of a CNC milling machine, enabling more rapid and cost effective metal fabrication work on-site, rather than through a sub-contractor

- team appointments - additional CAD Engineers; Mr. Peter Gennuso (Vice-President for Corporate Strategy); and Mr. Marco Cuccinato (Control System Specialist)

- The development, under the guidance of Mr. Cuccinato, of a unique electronic control system, using Clean Power's own Intellectual Property to ensure the maximum possible fuel efficiency and emissions reductions in all operating conditions

Bringing such engineering work in-house is an important cornerstone of our ongoing strategy, as Clean Power moves from an R&D play into a testing and pre-production phase. Optimizing our supply chain will also help us avoid some of the unpredictability and delay that we have experienced during the last year, for instance with delivery of the rolling road, arrival of the test truck and replacement of our dynamometer (a core component of Clean Power's test rig), which failed unexpectedly in May 2009.

Development testing

Happily, a new dynamometer is now fitted and our engineering facility at Newhaven, on the South Coast of England, is ready for rolling-road testing of the CESAR system. The system has now been fully-integrated into the Freightliner truck for optimization of the trailer (or 'reefer') refrigeration application.

A video of the recently expanded Newhaven site was shown at the AGM, illustrating its readiness for this next phase of testing which is expected to commence within a few days.

Mr. Burns informed shareholders that the Company intends to commence road tests at the world-renowned Millbrook development track in September 2009. These tests will validate CESAR's fuel efficiency, which in test-rig situations can currently exceed 60% or better, whilst providing additional fuel efficiency benefits to the truck itself even when the reefer engine is not using the available energy.

Mr. Burns outlined the Company's intention, subject to satisfactory completion of all tests, to produce the final design of the reefer engine within 10 to 12 months, in preparation for data submission to the US EPA by late Spring 2010.

EPA certification

Clean Power has been fortunate to identify and engage Cascade Sierra Solutions as possible advisors for the EPA and other Regulatory application processes (www.cascadesierrasolutions.org). Located in the State of Oregon, Cascade Sierra Solutions ("Cascade") is a non-profit organization working with heavy duty truck operators to save fuel and reduce emissions. Cascade is well connected with Federal and State agencies, working especially closely with agenda-setting regulators in California.

Cascade's founder and CEO, Ms. Sharon Banks, attended the AGM. She stated that Clean Power's Company's technology not only offers strong energy and emissions reduction potential to the industry, but also confirmed Cascade's commitment to guiding Clean Power through the various Regulatory processes. Ms. Banks also outlined the various US Government funding programs which may be available for technologies like Clean Power's, offering to assist the company in any relevant applications.

Stationery power applications

In addition to the truck refrigeration program summarized above, the CESAR system is also ideal for energy recovery in a wide range of stationery power applications. Mr. Burns advised shareholders that Clean Power is also developing its technology for use on landfill sites where it has the potential to increase site revenues from landfill gas-to-electricity plants by at least 20%. The Company has already entered into preliminary discussions with a regional landfill site operator in the U.K. and will be meeting another larger UK player in the near future. Clean Power intends to install a prototype test engine at a landfill site by early Spring 2010.

Intellectual Property

Mr. Mitha informed the Meeting that patent applications have now been filed in five jurisdictions, with the intention to include additional jurisdictions. Furthermore, the Company has received the international search report and written opinion of the Searching Authority and understands that all of the claims were deemed to have industrial applicability and that 10 of the 19 claims were both novel and inventive. The company intends to make certain revisions to the other claims and seek to get additional claims allowed.

Marketing & promotion

During the last year Clean Power has continued to secure significant acclaim from over 30 sector, financial and broadcast media, including: Bloomberg, The Engineer, Commercial Motor and BBC TV. Mr. Mitha advised shareholders that most recently, a Swiss production company has expressed interest in making a small documentary about Clean Power and its technology for a television program called Einstein. Their film crew will be visiting the Newhaven facility on June 17th for broadcast within the next month. Historical and ongoing press coverage can be viewed at the Company's website: http://www.cleanpowertech.co.uk/content/media/press.asp.

Abdul Mitha, President and Chief Executive Officer of Clean Power Technologies Inc. concludes: "I am delighted to have delivered such a positive 'report card' to our loyal shareholders and investors at this year's Clean Power AGM. As with any technological development program there have been some unpredictable glitches, such as delivery delays on key equipment and a fault with our dynamometer, but our concerted recruitment and 'in-sourcing' program will give us more control over such issues in the future.

"We look forward to that future reassured by strong market feedback - whether through existing collaborators, including Safeway and Voith, potential partners, such as Cascade, or just from the positive impression we are making with industry leaders and media. Thank you to Clean Power's growing team of dedicated staff and advisors for driving us through the main R&D stage and ever closer to commercialization."

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.

Clean Power Technologies has cooperative research and development agreements in place with one of the USA's largest grocery chains, freight haulage companies and international engineering corporations.

Testing of the CESAR system on a Caterpillar C15 diesel engine has recorded a dramatic 40% improvement in fuel efficiency, with a corresponding reduction in the level of emissions. The Company is in advanced stage of the development of this engine, designed for the provision of auxiliary power and trailer refrigeration within the industrial vehicle and grocery truck industries.

The Company boasts a highly experienced engineering team, whose vision and technical capabilities are driving the implementation of this unique hybrid fuel technology. Clean Power Technologies operates out of its development facility in Newhaven, East Sussex, UK.

The Company is listed on XETRA on the Frankfurt Stock Exchange and is also traded on the OTC BB in the USA.

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 vapor engine. Power can be produced solely by the secondary vapor 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 program and also in the locomotive and marine sectors.

DISCLAIMER

Forward Looking Statements - The information contained herein regarding risks and uncertainties, which may differ materially from those set forth in these statements, in addition to the economic, competitive, governmental, technological and other factors, constitutes a 'forward-looking statement' within the meaning of Section 27A of the Securities Act of 1933, as amended, Section 21E of the Securities Exchange Act of 1934, as amended, and the Private Securities Litigation Reform Act of 1995 and is subject to the safe harbors created thereby. While the company believes that the assumptions underlying such forward-looking information are reasonable, any of the assumptions could prove inaccurate and, therefore, there can be no assurance that the forward-looking information will prove to be accurate. Accordingly, there may be differences between the actual results and the predicted results, and actual results may be materially higher or lower than those indicated in the forward-looking information contained herein.

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