Clean Diesel Technologies licenses patented ARIS® technology to EatonCorporation for advanced vehicle emission control systems

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Bridgeport, CT - January 7, 2009 - Clean Diesel Technologies, Inc.
(NASDAQ:CDTI; XETRA: CDIA; AIM:CDT), the clean technology emissions
reduction company and Eaton Corporation (NYSE:ETN) today announced
they have entered into a global non-exclusive licensing agreement.
Under the agreement, Eaton will use Clean Diesel's patented Advanced
Reagent Injector System (ARIS®) technology for injection of
hydrocarbon fuel in emissions reduction applications, including
Eaton's Aftertreatment System. This technology can also be applied to
regeneration of diesel particulate filters and lean NOx traps in
various global applications.
 
Both Eaton's innovative Aftertreatment  and fuel dosing systems  have
worldwide application for  reducing NOx and  particulate matter  (PM)
emissions from diesel engines.  NOx and PM  are a significant  health
hazard and are estimated by the Environmental Protection Agency (EPA)
to cause 20,000 premature deaths  annually in America. Children,  the
elderly and those with pre-existing health conditions, such as asthma
are especially  at  risk. These  systems  can be  used  for  on-road,
off-road and stationary applications,  with a combined global  market
size of new medium-duty  and higher engines  exceeding 7 million  per
year.  Eaton  is  targeting  NOx  and  PM  control  technologies  for
production in 2011 and beyond in various applications.
 
Eaton's unique  Aftertreatment System  does not  require the  use  of
additional urea for NOx  reduction. It is  an integrated system  that
effectively meets the EPA  and international regulation  requirements
without the on-vehicle  storage, replenishment  and infrastructure  a
urea-based system requires. For example, EPA regulations require that
all new 2010 on-road engines comply with increasingly strict NOx  and
PM standards.
 
Clean Diesel's ARIS technology  is designed for use  in all types  of
combustion engines.  Its key advantages  include the use of a  single
emissions reduction fluid  to provide injector  cooling and the  fact
that it is easier to manufacture, install and operate than compressed
air systems.
 
Dimitri Kazarinoff,  general manager  for Emerging  Technologies  and
Business Development at Eaton,  said: "We are  excited to enter  this
licensing agreement with Clean  Diesel. It provides  access to a  key
technology, which helps us provide  system based solutions to  reduce
NOx and PM, hence  making significant contributions toward  emissions
reduction and  sustainability. We  are working  with numerous  global
OEMs to provide them with NOx and PM emission reduction solutions."
 
Dr. Bernhard Steiner, Chief Executive Officer of Clean Diesel,  said:
"We are  delighted  with the  use  of our  ARIS  airless  return-flow
technology in  this application.  ARIS  technology is  more  commonly
associated with selective catalytic reduction (SCR) systems based  on
urea injection; Eaton's use of hydrocarbon injection underscores  the
broad applicability of our ARIS technology.
 
"Eaton has taken two NOx-reducing technologies and packaged them into
a system where they  can work together,  taking advantage of  several
catalytic reactions to reduce harmful emissions," Dr. Steiner  added.
"We are pleased  to provide a  key technology that  will help  reduce
global  emissions   and   that   supports   Eaton's   commitment   to
environmental sustainability."
 
Vishal Singh, manager for Eaton's Aftertreatment business unit, said:
"Eaton's versatile  solution  makes  use  of  diesel  or  fuels  from
renewable resources to meet emission standards without the logistical
and cost-related  issues associated  with on-board  urea storage  and
wide-scale urea  distribution.  Clean Diesel's  patented  technology,
when combined  with our  own  in this  unique  way, will  enable  our
customers to benefit from an aftertreatment system that is simple yet
effective in  significantly  reducing  PM  and  NOx  emissions.  This
technology license strengthens  our portfolio and  combined with  our
own technology  provides our  global  customers with  more  technical
solutions  to  meet  the  strict  upcoming  diesel  engine  emissions
standards worldwide."
 
Hydrocarbon injection  is an  important  and growing  technology  for
diesel particulate filter regeneration  applications, as well as  for
NOx absorbers  and NOx  conversion catalysts.  Clean Diesel  supplies
patented technology  enabling  both urea-based  and  alternative  SCR
solutions for fuel-efficient emission control.
 
About Clean Diesel Technologies
Clean Diesel  Technologies  (NASDAQ:  CDTI) is  a  cleantech  company
providing sustainable solutions to reduce emissions, increase  energy
efficiency and lower the carbon intensity of on- and off-road  engine
applications. Clean Diesel's patented technologies and products allow
manufacturers  and  operators  to  comply  with  increasingly  strict
regulatory emissions and air quality standards, while also  improving
fuel economy  and  power.  The  company's  solutions,  which  are  in
commercial use worldwide,  significantly reduce  emissions formed  by
the combustion of  fossil fuels and  biofuels, including  particulate
matter (PM), nitrogen oxides (NOx), carbon monoxide and hydrocarbons.
Clean Diesel solutions also reduce carbon dioxide (CO2) emissions,  a
key greenhouse gas associated with global climate change.
 
Clean Diesel develops and manages intellectual property from original
concept to full-scale  commercial deployment.  Its offerings  include
ARIS® Selective Catalytic Reduction  (SCR); the patented  combination
of SCR  and  Exhaust  Gas Recirculation;  hydrocarbon  injection  for
emissions control  applications; Platinum  Plus® Fuel-Borne  Catalyst
(FBC); the Purifier(TM) family of particulate filter systems; and its
Wire Mesh  Filter particulate  filter technologies.  The company  was
founded in  1995 and  is headquartered  in Stamford,  Connecticut.  A
wholly owned subsidiary, Clean Diesel International, LLC, is based in
London, England. For more information, please visit www.cdti.com.
 
About Eaton
 
Eaton Corporation is a diversified power management company with 2007
sales of  $13  billion.  Eaton  is  a  global  technology  leader  in
electrical systems  for  power  quality,  distribution  and  control;
hydraulics components, systems and services for industrial and mobile
equipment; aerospace  fuel,  hydraulics  and  pneumatic  systems  for
commercial and military use; and truck and automotive drivetrain  and
powertrain systems for performance,  fuel economy and safety.   Eaton
has 82,000 employees and sells products to customers in more than 150
countries. For more information, visit www.eaton.com.
 
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 U.S. 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.
 
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Contacts:
 
Matter Communications                     Clean Diesel Technologies,
(Technical press inquiries)               Inc.
Jacqueline Volovich                       Walter G. Copan
+1 415-984-6281                           EVP, CTO
jackie@matternow.com                      +1 203 327 7050
                                          wcopan@cdti.com
 
Crescendo Communications, LLC             Charles Stanley Securities
(U.S. investor contact)                   Nominated Adviser
David K. Waldman or Klea Theoharis        Philip Davies / Freddy
+1 212 671 1020                           Crossley
cdti@crescendo-ir.com                     Tel: +44 20 7149 6457
Innovator Capital Limited                 Eaton Corporation
(Financial press inquiries)               Don Alles
Shaun Brown                               Manager, Global
Jade Summer                               Communications
+44 20 7297 6840                          (269) 342-3311
jade.summer@innovator-capital.com         DonAlles1@Eaton.com
 
The press release can be downloaded from the following link:
 
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Clean Diesel Technologies, Inc.
300 Atlantic Street, Suite 702 
Stamford, CT  USA
 
WKN: 898074; ISIN: US18449C1045; 
Listed: Xetra Stars in Frankfurter 
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