DJ HUGIN NEWS/Clean Diesel Technologies, Inc. Reports Full Year and Fourth Quarter 2007 Results

DJ HUGIN NEWS/Clean Diesel Technologies, Inc. Reports Full Year and Fourth Quarter 2007 Results

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Stamford, CT  - March  18,  2008 -  Clean Diesel  Technologies,  Inc.
(NASDAQ:CDTI; XETRA:CDIA; AIM:CDT), the cleantech emissions reduction
company, today announces  financial results for  the year and  fourth
quarter ended December 31, 2007. 

Financial highlights for the full year 2007 include: 

  * Total revenue of $4.9 million, up 339% compared to $1.1 million
    in 2006.
  * Revenue mix was 30% in product sales and 70% in technology
    licensing fees and royalties compared to the 2006 revenue mix of
    77% in product sales, 6% in technology licensing fees and
    royalties and 17% in consulting fees and other.
  * Total gross profit as a percentage of revenue was 77% and 41% for
    the years ended December 31, 2007 and 2006, respectively, due to
    the change in revenue mix.
  * Net loss lowered to $4.5 million compared to 2006 net loss of
    $5.4 million. 2007 includes $2.2 million in non-cash stock option
    and warrant fair value charges compared to $304,000 of such
    charges in 2006.
  * Clean Diesel netted $15.2 million upon warrant exercises, and
    received $4.3 million for subscribed shares, resulting in a cash
    and investment position of about $20.3 million at December 31,
    2007. 

Significant developments 

  * Granted a worldwide nonexclusive license for Clean Diesel's
    patented ARIS® technologies for control of oxides of nitrogen
    (NOx) using selective catalytic reduction to Robert Bosch GmbH.
  * Granted a similar worldwide nonexclusive license for the ARIS
    technologies to Tenneco Automotive.
  * In October, received the London Low Emission Zone (LEZ)
    certification for Purifier(TM), Clean Diesel's particulate matter
    emission control technology. LEZ sales to date have exceeded
    initial expectations.
  * In October, CDTI common shares began trading on the NASDAQ
    Capital Market. 

"The past year has been our most successful, with worldwide licensing
agreements, a NASDAQ  listing and significant  revenue growth,"  said
Dr. Bernhard Steiner, President and CEO of Clean Diesel Technologies.
"The licensing  agreements  with  Bosch  and  Tenneco  for  our  ARIS
selective  catalytic   reduction   technologies   indicate   industry
acceptance of our NOx reducing technologies as effective solutions to
the worldwide  regulatory standards  for air  quality. Combined  with
this,  our certification for the London Low Emission Zone program has
resulted in substantial orders. We are now in a good position to sign
further licensing deals  and obtain  business in  low emission  zones
planned throughout Europe." 

"We  are  broadening  our  sales   by  building  our  marketing   and
distribution channels. We will continue to focus on supplying  market
needs in  various industries  to bring  environmental benefits,  fuel
economy improvements,  and  practical,  lower-cost  emission  control
solutions," said Dr. Steiner. 

Full Year Financial Results
Total revenue was $4.9  million in 2007 compared  to $1.1 million  in
2006, an increase of $3.8  million, or 339%, reflecting increases  in
product sales and technology licensing fees and royalties.
In 2007, the  Company made  progress in the  execution of  technology
license  agreements  with  manufacturers  and  component   suppliers,
including new and amended  licensing agreements for  the use of  ARIS
technologies for  control  of  oxides of  nitrogen  (NOx)  using  our
selective catalytic reduction (SCR) emission control; the combination
of  exhaust  gas  recirculation  (EGR)  with  SCR  technologies;  and
hydrocarbon injection for  lean NOx traps,  NOx catalysts and  diesel
particulate  filter   regeneration.  Technology   license  fees   and
royalties were $3,459,000 in 2007,  compared to $74,000 in 2006,  and
were primarily attributable  to the license  fees and royalties  from
new and amended licenses.
Product sales were $1,466,000 in  2007 compared to $860,000 in  2006,
an increase of $606,000, or  70.5%. The Company's 2007 product  sales
exceeded 2006 total revenue of $1.1 million. The increase in  product
sales is attributable primarily to higher demand for Purifier  filter
systems. The  Purifier line  is  a range  of products  comprising  an
emission control device, such as ceramic diesel particulate filter or
wire mesh particulate  filter, together with  the Company's  Platinum
Plus fuel-borne  catalyst  dosed  into  the  fuel  to  enable  filter
regeneration. 

Selling, general and administrative expenses were $8,041,000 for  the
year ended  December  31, 2007,  an  increase of  52.3%  compared  to
$5,278,000 in 2006.  The increase  is mainly due  to higher  non-cash
charges for  the  fair  value  of  stock  options  and  warrants  (in
accordance with SFAS No.  123R which the  Company adopted in  January
2006). Aggregate non-cash charges for the fair value of stock options
and warrants  in  2007  operating expenses  were  approximately  $2.2
million, or $0.32 per share,  compared to $304,000 ($0.06 per  share)
in 2006. 

Fourth Quarter 2007 Results
Total revenue for the fourth quarter was $1.0 million, an increase of
326% compared  to  $236,000 in  the  fourth  quarter of  2006.    The
increase in fourth quarter revenue is primarily due to higher product
sales for the London LEZ. Net loss for the fourth quarter of 2007 was
approximately $2.9 million ($0.38 per share) compared to $1.5 million
($0.30 per  share) in  the  same 2006  quarter. 2007  fourth  quarter
operating expenses  include non-cash  stock option  and warrant  fair
value charges of approximately $1.5 million. 

For further information: 

Clean Diesel Technologies, Inc.
Dr. Bernhard Steiner, President & CEO
bsteiner@cdti.com
Ann Ruple, Vice President, Treasurer & CFO
aruple@cdti.com
+1 203 327-7050 

Innovator Capital Limited
(Financial press inquiries)
Shaun Brown
Jade Summer
+44 20 7297 6840
jade.summer@innovator-capital.com. 

Charles Stanley Securities
Nominated Advisors
Philip Davies
Tel: +44 20 7149 6457
philip.davies@csysecurities.com 

Matter Communications
(Technical press inquiries)
Jacqueline Volovich
+1 978 499 9250 x236
jackie@matternow.com 

About Clean Diesel Technologies, Inc.
Clean Diesel Technologies, Inc. is a cleantech company that  provides
innovative solutions to reduce harmful engine emissions and  conserve
energy. Clean Diesel's 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,  PurifierTM
particulate filter  systems, the  ARIS®  urea injection  systems  for
selective catalytic reduction of  NOx, diesel particulate filter  and
biofuel formulation technologies. Our products are in commercial  use
around the world. Platinum Plus and ARIS are registered trademarks of
Clean Diesel  Technologies,  Inc.  You  may  visit  Clean  Diesel  at
www.cdti.com  or  contact  the   Company  directly.  For   additional
information, you may review our Annual  Report on Form 10-K as  filed
with the Securities and Exchange Commission at 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 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. 

To read  the  complete press  release  including figures  and  tables
please click the follow 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
Wertpapierbörse; 

http://www.cdti.com
Copyright © Hugin AS 2008. All rights reserved. 

(END) Dow Jones Newswires

March 18, 2008 07:16 ET (11:16 GMT)