Issue of Equity

Dated: 22 June 2007

                         Kleenair Systems International
                          (`Kleenair' or the `Company')

                 Issue of New Shares on Conversion of Loan Note

The  Company has today issued 882,500 new Ordinary 1p shares in satisfaction  of
the  conversion  of the £150,025 Convertible Loan Note held by 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.   An
application has been made to admit the shares to trading on AIM with effect from
27 June 2007.

Following   the  conversion,  Bramley  will  hold  1,849,196  Ordinary   Shares,
representing 8.94% of the voting rights of the Company.  Lionel Simons will  now
have  beneficial interests in a total of 2,849,196 Ordinary Shares, representing
13.77% of the voting rights of the Company.

For further information please contact:

Peter Newell                                              07786 333 046
[e-mail]

Nick Harriss                                              020 7512 0191
ARM Corporate Finance Ltd