Clean Diesel Technologies, Inc.

Clean Diesel Technologies, Inc.

August 12, 2005 02:33 ET

Clean Diesel Technologies Reports 2005 Second-Quarter Results

STAMFORD, CONNECTICUT--(CCNMatthews - Aug. 12, 2005) -

Company Also Announces Receipt of Additional Grants or Awards in Three US States

Clean Diesel Technologies, Inc. (Clean Diesel) (EBB:CDTI)(AIM:CDT)(AIM:CDTS), a developer of chemical and technological solutions to reduce harmful engine emissions, today reported results for the second quarter and first half of 2005, and announced that it has been chosen for grants or awards in the states of Texas, New York and Massachusetts. Total revenue for this year's second quarter was $268,000 with a net loss of $1,286,000, or $0.07 loss per share, versus revenue of $93,000 and a net loss of $885,000, or $0.06 loss per share, for the second quarter of 2004. For the first six months ended June 30, 2005, total revenue was $460,000 with a net loss of $2,477,000, or $0.14 loss per share. In the comparable 2004 period, revenue was $287,000 and a net loss of $1,693,000, or $0.11 loss per share.

Completion of two previously announced State of Pennsylvania demonstration programs boosted Clean Diesel's revenue with sales of the verified Platinum Plus® Purifier diesel-oxidation catalysts (DOC) and fuel-borne catalyst (FBC). The Company supplied systems for 125 beverage-delivery and waste-hauling vehicles in southeastern Pennsylvania. The increase in Platinum Plus FBC revenue is also the result of the ongoing sales to fleets and expanded market share in the US mining sector.

Clean Diesel said that its increased sales and marketing initiatives are beginning to generate results. In the last two months: the Platinum Plus FBC has been selected in competitive bidding for grants or awards by the Texas Council of Environmental Quality, for demonstration of the Company's cleaner burning biodiesel blend; the Platinum Plus FBC/DOC was chosen by the New York State Energy Research Development Authority for application to ferries and marine vessels; and the State of Massachusetts selected the verified FBC/DOC and FBC catalyzed wire-mesh filter (CWMF) for use with public and municipal buses and vehicles.

Clean Diesel has recently commenced a program with Rhodia, the current FBC supplier for over one million vehicles in Europe, to demonstrate the performance benefits, lower cost and improved durability of the Platinum Plus FBC with particulate filter-based systems on light- and medium-duty original equipment manufacturers (OEMs). The use of the Platinum Plus FBC is expected to reduce life cycle platinum requirements of the filter systems by over 50 percent.

Clean Diesel expects revenue growth in the near term as local and state funding becomes more available and its technologies continue to gain broader acceptance. The recently approved US House bill and Senate bill to provide $1 billion, over five years, to support retrofit of existing engines would greatly increase the funds available to "clean-up" the 11 million existing diesel engines in the US.

Clean Diesel CEO Bernhard Steiner said, "Good progress has been made on attracting interest from US and European OEMs and tier-one suppliers in licensing the Company's ARIS injector system for urea selective catalytic reduction (SCR)-based NOx reduction and the exhaust gas recirculation (EGR)/SCR technology. The patented EGR/SCR system can achieve the stringent 2010 NOx limits."

In addition, Clean Diesel recently announced that Dr. Walter Copan has joined the Company as its Vice President and Chief Technology Officer. Dr. Copan was Principal Licensing Executive, Technology Transfer for the U.S. Department of Energy's National Renewable Energy Laboratory (NREL), where he was responsible for the commercialization of clean energy, energy efficiency and related technologies through partnerships with industry, academia, and government. Prior to his tenure with NREL, Dr. Copan spent 28 years with the Lubrizol Corporation in a number of positions in research and development, engineering, product development, strategy, international business development, and new ventures.

Full financial information is included in the Company's Form 10-Q filed with the Securities and Exchange Commission (

About Clean Diesel Technologies, Inc.

Clean Diesel Technologies, Inc. and its UK representative office, Clean Diesel International LLC, is a developer of chemical and technological solutions to reduce harmful engine emissions. Clean Diesel Technologies has patented products that reduce emissions from combustion engines while simultaneously improving fuel economy and power. Products include Platinum Plus® fuel-borne catalysts (FBC), the Platinum Plus Purifier System and the ARIS® 2000 urea-injection systems for selective catalytic reduction of NOx. Platinum Plus and ARIS are registered trademarks of Clean Diesel Technologies, Inc. For more information, visit CDT at or contact the Company directly.

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 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.


(in thousands except share data)
Three Three Six Six
Months Months Months Months
Ended Ended Ended Ended
June June June June
30, 30, 30, 30,
2005 2004 2005 2004
$'000's $'000's $'000's $'000's
Additive revenue 91 56 186 113
Hardware revenue 166 25 258 144
License and royalty revenue 11 12 16 30
Total revenue 268 93 460 287

Costs and expenses:

Cost of revenue 161 53 271 185
General and administrative 1,210 821 2,375 1,611
Research and development 88 90 147 170
Patent amortization and other expense 25 27 64 39

Loss from operations (1,216) (898) (2,397) (1,718)
Other income(expense):

Foreign currency exchange gain (75) - (94) -
Interest income 5 13 14 25

Net loss (1,286) (885) (2,477) (1,693)
Basic and diluted loss per common
share (0.07) (0.06) (0.14) (0.11)
Weighted average number of common
shares outstanding - basic
and diluted 17,171 15,679 17,168 15,679


(in thousands except share data) June December
30 31
2005 2004
$'000's $'000's
Current assets:
Cash and cash equivalents 1,525 4,265
Accounts receivable, Net 255 145
Inventories 338 387
Other current assets 113 71
Total current assets 2,231 4,868
Patents, Net 537 418
Fixed Assets, Net 203 200
Other assets 27 27
Total assets 2,998 5,513

Liabilities and Stockholders' Equity
Current liabilities:
Deferred compensation and pension benefits - -
Accounts payable and accrued expenses 282 391
Total current liabilities 282 391

Stockholders' equity:
Preferred stock, par value $0.05 per share,
authorized 100,000 shares, no shares issued
and outstanding - -
Common stock, par value $0.05 per share,
authorized 30,000,000 shares, issued and
outstanding 17,165,868 and 15,679,387 shares,
respectively 860 858
Additional paid-in capital 38,500 38,431
Accumulated deficit (36,644) (34,167)

Total stockholders' equity 2,716 5,122
Total liabilities and stockholders' equity 2,998 5,513

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