SOURCE: Cleantech Transit, Inc.

Cleantech Transit, Inc.

April 23, 2012 06:00 ET

Cleantech Transit Commences Commercial Operations of Biomass Gasification Facility & Increases Ownership

LAS VEGAS, NV--(Marketwire - Apr 23, 2012) - Cleantech Transit, Inc. ("Cleantech or the Company") (OTCBB: CLNO) is pleased to report that the 500 KW biomass facility located in Merced County, California has successfully completed its initial air quality inspection and is moving toward commencing commercial operations. The plant is currently connected to the electricity grid under California's feed -- in tariff with a 15-year power purchase agreement.

The Company has been continuing its efforts to develop an environmentally friendly asset base in the green sector, and with that objective in mind is pleased to announce it's working toward further expanding its stake in the Merced facility. Cleantech is in the final stages of increasing its ownership interest from 25% to 40% in the biomass facility. Based on initial testing the Merced plant has surpassed its 500 KW production capacity and reached a maximum output of 640 KW, outperforming its original rated output by 28 percent.

The Company intends to provide further details on this project as well as other future corporate developments in the near term.

President and CEO of Cleantech Transit, Inc. Kenneth Bosket commented, "We are delighted that the Merced facility is moving toward commercial operations, and look forward to realizing the value created by converting local biomass into energy and more importantly creating jobs for the local community."

About Cleantech Transit, Inc.:

The Company's mandate is to create opportunities utilizing advances in technology and manufacturing processes in order to develop significant market share in the alternative clean energy sector. With the growth in green energy initiatives, the Company has expanded its focus to invest directly in specific projects that will maximize shareholder value. Recent advances in the technology of converting wood waste into power have greatly enhanced the economic value of the Company's systems. A Biomass division was launched led by Phoenix Energy to focus exclusively on generating greater returns for manufacturing clients worldwide. For more information please visit the Company's website at www.cleantechtransit.net.

This news release contains "forward-looking statements" as that term is defined in Section 27A of the United States Securities Act of 1933, as amended and Section 21E of the Securities Exchange Act of 1934, as amended. Statements in this press release which are not purely historical are forward-looking statements and include any statements regarding beliefs, plans, expectations or intentions regarding the future. Such forward-looking statements include, among other things, the development, costs and results of new business opportunities. Actual results could differ from those projected in any forward-looking statements due to numerous factors. Such factors include, among others, the inherent uncertainties associated with new business opportunities and development stage companies. These forward-looking statements are made as of the date of this news release, and we assume no obligation to update the forward-looking statements, or to update the reasons why actual results could differ from those projected in the forward-looking statements. Although we believe that any beliefs, plans, expectations and intentions contained in this press release are reasonable, there can be no assurance that any such beliefs, plans, expectations or intentions will prove to be accurate. Investors should consult all of the information set forth herein and should also refer to the risk factors disclosure outlined in our annual report on Form 10-K for the most recent fiscal year, our quarterly reports on Form 10-Q and other periodic reports filed from time-to-time with the Securities and Exchange Commission.