Clean Diesel Technologies Director's Shareholding

STAMFORD, CT (14 June 2005) … Clean Diesel Technologies, Inc. (CDT) (EBB:CDTI & AIM:CDT/CDTS), a developer of chemical and technological solutions to reduce harmful engine emissions, today announces that 27,179 common shares have been issued to Derek Gray, Non-Executive Chairman of the Company, in lieu of his director's fee for the January 1, 2004 to December 31, 2004 period. As a result, Derek Gray is interested in 442,313 common shares representing 2.6 percentage of the issued share capital of the Company.

About Clean Diesel Technologies, Inc.

Clean Diesel Technologies, Inc. is a specialty chemical company with patented products that reduce emissions from diesel engines while simultaneously improving fuel economy and power. Products include Platinum Plus® fuel catalysts, the Platinum Plus Purifier System, and the ARIS® 2000 urea injection systems for selective catalytic reduction of NOx. Platinum Plus and ARIS are registered trademarks of Clean Diesel Technologies, Inc. For more information, visit CDT at www.cdti.com or contact the Company directly.

Clean Diesel International LLC is located in Surrey England, south of London.

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 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.