Catalytic Solutions, Inc.

(The "Company")

product verIfication EXTENSION 

Catalytic Solutions, Inc. (AIM:CTS and CTSU), the company behind Mixed Phase Catalyst (MPC®) technology, is pleased to announce that its heavy-duty diesel systems business through its wholly owned subsidiary, Engine Control Systems, has received a verification for its key emissions product from the State of California's Air Resources Board (ARB), enabling it to sell into the important market of California.  

Catalytic Solutions' ECS Purifilter™ H is now classified as a Level 3 Plus device suitable for heavy-duty diesel on-road vehicles for use in a variety of 1993-2006 heavy-duty diesel highway engines. Level 3 Plus classification applies to devices reducing emissions of diesel particulate matter by greater than or equal to 85 percent. 

The ARB and Environmental Protection Agency (EPA) have mandated that from January 1, 2009, all verified diesel retrofits sold and installed must comply with new reduced nitrogen dioxide emissions limits.  This classification makes the ECS Purifilter™ H, and Purifilter™ L, the only two verified passively regenerating Level 3 Plus diesel particulate filters currently available for sale in California that meet these new requirements.  In addition to the Level 3 Plus classification the ARB has also extended the Purifilter™ H verification coverage to include all EPA-certified diesel engines operating in California.

Various federal and state funding programs have been established in order to save fuel and lower greenhouse gas and diesel exhaust emissions from the country's existing fleet of approximately 11 million diesel engines.  This verification extension from the ARB allows the continued sale of the Company's products to thousands of on-road heavy-duty diesel vehicles in the state of California. The voluntary Lower Emissions School Bus Program alone will grant in excess of U.S. $25 million over the next two years for the retrofit of diesel school buses with Level 3 Plus verified diesel particulate filters. Additionally, tens of thousands of other highway vehicles must be made compliant with mandatory statewide control measures over the next several years which will require retrofit with verified exhaust diesel particulate filters. 

Throughout the U.S., many states currently have, or are setting up, retrofit programs using state budget funds or funds obtained through either the Federal Highway Administration's Congestion Mitigation Air Quality program, estimated at $8.6 billion over the period 2005 to 2009, or the U.S. EPA's National Clean Diesel Campaign, the latter with more than $34 million for the current budget year for the voluntary retrofit of thousands of vehicles with advanced emissions control technologies. 

This verification extension positions the Company to be a leader in the supply of verified emissions control products for these markets.

Commenting on the verification, Ed Richards, President of Catalytic Solutions, Inc.'s heavy-duty diesel systems business, said:  

"We are very pleased to have received such an important verification.  It is extremely important that we supply our customers with verified and compliant devices that they will be able to install and operate based on the fast-approaching emission limit rules."

Charles F. Call, Chief Executive Officer of Catalytic Solutions, Inc. added:

"This is an excellent example of our leadership in the heavy duty diesel retrofit market - a market that is critical to our environment and financed by a number of funding programs for customers.  We continue to offer our customers high value products while benefiting the global environment and are well positioned to address the growing demand going forward." 

For further details, please contact:

  About Catalytic Solutions, Inc.

Catalytic Solutions operates in the field of catalysis, offering catalyst-based solutions for clean utilization of fossil fuels. Catalytic Solutions was successfully admitted to AIM (AIM:CTS and CTSU), a market operated by the London Stock Exchange plc, in November 2006. The Company is focused on the creation, manufacture and supply of emission control catalysts for motor vehicle (gasoline and diesel engines) and energy applications (gas turbines, boilers, gensets). Catalytic Solutions' catalysts are designed to deliver high value to customers while benefiting the global environment through air quality improvement, sustainability and energy efficiency. With over eight million parts supplied to customers since 1996, Catalytic Solutions' proven technical and manufacturing competence meets auto makers' most stringent requirements. In December 2007, the Company acquired Engine Control Systems, a manufacturer of technology-based emission control systems giving Catalytic Solutions access to European manufacturing, product testing and development.  Engine Control Systems develops, manufactures and supplies a full range of custom-built technology-based and standard emission control products for original equipment, aftermarket and retrofit applications. The products are used for treating harmful exhaust emissions primarily in the heavy-duty diesel market.  The technology-based products change or modify the nature of the exhaust gases, thereby reducing hazardous elements rather than simply attenuating noise. In August 2006, the Company acquired certain tangible and intangible assets from Applied Utility Systems and established Applied Utility Systems, Inc. (a wholly owned subsidiary of the Company) as the operating company for the new business. Applied Utility Systems is engaged in designing and installing systems related to the clean and efficient use of fossil fuels outside of their use in motor vehicles. The Company currently has operations in the USA, Canada, France, Japan, Sweden and an Asian Joint Venture.

• News Channel