Director/PDMR Shareholding and Loan Back of Monies

Dated: 13 April 2007 KleenAir Systems International (`KleenAir' or the `Company') Director's Dealing and Loan Back of Monies The Company has today been informed that Bramley Limited, ("Bramley") a company owned by a discretionary trust of which Lionel Simons, the Chairman of the Company, and his family, are potential beneficiaries, sold 882,353 Ordinary 1p shares at 17p per share on 12 April 2005. The sale was made through the market by Falcon Securities, the Company's broker. The gross proceeds of this disposal are £150,000. Bramley has in turn agreed to make a loan to the Company of £150,025 by way of a loan note subscription (the "Loan Note"). These funds will be used to provide working capital for received orders, and Bramley is in discussions with the Company about making available additional facilities. The Loan Note is convertible, at the option of either Bramley or the Company, at a price of 17p per share, equivalent to a total of 882,500 Ordinary 1p shares. A resolution will be put before shareholders at the Company's next Annual General Meeting to give the Directors powers to allot sufficient new Ordinary 1p shares in the Company to allow for the full conversion of the loan note. If the Loan Note is not converted, it will be due for redemption, at par, on 31 March 2010. The Loan Note is unsecured and carries an interest rate equivalent to the base rate of Barclays Bank Plc, accruing on a daily basis and compounded annually on 22 March each year until maturity. Following the disposal, Bramley will hold 3,117,647 Ordinary Shares, representing 15.74% of the voting rights of the Company. Lionel Simons will now have beneficial interests in a total of 4,117,647 Ordinary Shares, representing 20.79% of the voting rights of the Company. For further information please contact: Peter Newell 07786 333 046 peter.newell@kleenairsystems.co.uk Nick Harriss 020 7512 0191 ARM Corporate Finance Ltd
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