SOURCE: Cleantech Transit, Inc.

Cleantech Transit, Inc.

February 11, 2011 16:30 ET

Cleantech Transit Signs Agreement to Acquire a 25% Interest in a Fully Constructed, 500-Kilowatt Biomass Project in California

Company Marks Entry Into U.S. Biomass Alternative Energy Sector

SCOTTSDALE, AZ--(Marketwire - February 11, 2011) - Cleantech Transit Inc. ("Cleantech") (OTCBB: CLNO) announced today that it has successfully signed a term sheet with Phoenix Energy (www.phoenixenergy.net), a manufacturer and distributor of biomass-generated power plants. Under the terms of the agreement, Cleantech has an option to acquire a 25% interest into Phoenix Energy's asset base, which includes a fully constructed, one-half megawatt (500 kilowatt) biomass energy project located in California.

Phoenix Energy has developed an eco-friendly system that converts 100% recyclable agricultural and wood waste (biomass) into cleaner burning energy (heat, electricity) and other salable byproducts. The construction phase of Phoenix Energy's first, one-half Megawatt project is complete and is expected to become operational in the coming months. Cleantech will initially fund $100,000 directly into Phoenix Energy. The required amount of funding to earn in the full 25% of the project will be determined following completion of a testing period by Phoenix Energy.

Alex Holtermann, CEO of Cleantech, commented, "This agreement marks Cleantech's first step towards developing an asset base in the environmentally-friendly biomass arena. With a fully operational biomass facility coming online in the near term, we plan on moving forward with implementation of our strategic plans."

About Cleantech Transit Inc.

Cleantech Transit Inc. was founded to capitalize on technology advances and manufacturing opportunities in the growing clean energy public transportation sector. The Company has expanded its focus to invest directly in specific green projects that can maximize shareholder value. Recognizing the many economic and operational advances of converting wood waste into renewable sources of energy, Cleantech has selected to invest in Phoenix Energy (www.phoenixenergy.net). This project can generate shareholder returns as well benefit the Company's manufacturing clients worldwide. For more information, visit www.cleantechtransitinc.com.

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.

Contact Information