Clean Diesel Technologies, Inc. Reports Third Quarter Results For Period Ended September 30, 2007

Stamford, CT - November 15, 2007 - Clean Diesel Technologies, Inc.
("Clean Diesel" or the "Company") (NASDAQ: CDTI; AIM: CDT/CDTS;
XETRA: CDI), provider of innovative technologies and solutions that
reduce emissions, conserve fuel and improve engine performance, today
announced its results for the three and nine months ended September
30, 2007.

Highlights

* First-ever quarterly net profit of $651,000 (EPS of $0.09)
* Q-3 revenue increased 626% to $2.5 million from third quarter of
2006
* Strong cash and short-term investment position of approximately
$13.1 million at September 30, 2007

Significant Developments

* In October, Clean Diesel began trading on The NASDAQ Capital
Market
* Clean Diesel granted a worldwide, non-exclusive license to
Tenneco for the ARIS® system and related emission control
technologies
* London Low Emission Zone (LEZ) certification received for
Purifier, Clean Diesel's particulate matter emission control
technology


Dr. Bernhard Steiner, President and CEO, commented: "We have
continued to perform ahead of our expectations. Over the last nine
months we have worked hard to focus on revenue generation and
profitability. The September licensing deal with Tenneco adds another
industry-leading partner. In May, we granted a similar worldwide,
non-exclusive license to Bosch for our ARIS selective catalytic
reduction (SCR) technology for control of oxides of nitrogen (NOx)
emissions."

"Furthermore, gaining certification for the London Low Emission Zone
has opened up a large market for our Purifier retrofit solutions.
This certification will give us a competitive advantage in low
emission zones planned throughout Europe."

"Both our first profitable quarter and our NASDAQ listing are
significant and evidence the success of our global business
strategy," Dr. Steiner added. "We are well positioned for future
sustainable growth."

Clean Diesel reported total revenue for the quarter of $2,460,000
compared to $339,000 in the 2006 quarter. The increase in revenue is
due primarily to higher technology licensing fees and royalties of
$2.2 million in the 2007 third quarter, which included license fees
from new (Tenneco) and amended license agreements. Clean Diesel
reported a net profit of $651,000, or $0.09 per share, in the three
months ended September 30, 2007, compared to a net loss of $1.1
million for the same period in 2006, or ($0.21) per share.

In the nine months ended September 30, 2007, total revenue increased
341.8%, to $3,919,000, from $887,000 in the same 2006 period. Net
loss for the nine months ended September 30, 2007, was $1.7 million
compared to $3.9 million for the same period in 2006. The nine months
ended September 30, 2007 included $733,000 non-cash stock option
expense compared to $155,000 in the 2006 nine-month period.

During the third quarter 2007, the Company made progress in its
ongoing strategy to complete technology licensing agreements with
leading manufacturers and component suppliers. In September, Clean
Diesel entered into a worldwide, non-exclusive licensing agreement
with Illinois-based Tenneco (NYSE:TEN), to combine Tenneco's
proprietary products and technologies with Clean Diesel's ARIS®
airless reagent injection system and related technologies to control
oxides of nitrogen (NOx) through SCR. The license also supports other
NOx and particulate matter emission control strategies. The agreement
licenses Tenneco for the Original Equipment Manufacturers (OEMs)
market as Tier One supplier and systems integrator for emissions
solutions, as well as for retrofit markets. Tenneco is a global
leader in emissions and ride control with nearly 80 manufacturing
facilities and 14 engineering centers located in 24 countries on six
continents.

At September 30, 2007, Clean Diesel had cash and cash equivalents of
$1,251,000 and investments of $11,825,000.

About Clean Diesel Technologies, Inc.

Clean Diesel Technologies, Inc., together with its wholly-owned
subsidiary, Clean Diesel International, LLC, is a clean energy and
environmental technology company that provides innovative solutions
to reduce harmful engine emissions and conserve energy. Clean Diesel
Technologies' patented technologies, products and solutions enable
cost effective reduction of harmful emissions from internal
combustion engines while also improving fuel economy and power.
Products include Platinum Plus® fuel-borne catalysts, the Platinum
Plus Purifier Systems, the ARIS® urea injection system for selective
catalytic reduction of NOx, diesel particulate filter and biofuels
technologies. The products are in commercial use around the world.

For more information, visit Clean Diesel at www.cdti.com or contact
the Company directly. The Company's Quarterly Report on Form 10-Q is
available at the SEC's website (http://www.sec.gov).

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 US 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.

For additional information contact:


Clean Diesel Dr. Bernhard +1 203 327-7050
Technologies Steiner, CEO aruple@cdti.com
Ann Ruple,
CFO
JMFinn Capital Matthew Tel: +44 (0) 207 600 1658
Markets Robinson matthew.robinson@jmfinn.com

Abchurch Justin Heath +44 20 7398 7700
Communications Franziska franziska.boehnke@abchurch-group.com
(financial press Boehnke
enquiries)
Matter Jacqueline +1 978-499-9250 x236
Communications Volovich jackie@matternow.com
(technical press
inquiries)



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