Clean Diesel Technologies, Inc. Reiterates Inducement Awards

VENTURA, Calif., July 13, 2012

Mr. Breese's inducement awards include (i) a non-qualified stock option to purchase up to 176,676 shares of the Company's common stock at an exercise price per share equal to the closing price of the Company's common stock on the date of grant, that will vest and become exercisable as to 28% on the first anniversary of the date of grant and 9% quarterly thereafter, and (ii) a restricted share unit award representing the right to receive up to 58,892 shares of the Company's common stock, that will vest as to 28% on the first anniversary of the date of grant and 9% quarterly thereafter, beginning on June 20, 2013.  Equity awards that have not vested at the time of Mr. Breese's termination of service, other than a termination without cause or resignation for good reason concurrent with or subsequent to a change in control of the Company, will be forfeited.  The Company's Compensation and Nominating Committee approved the inducement awards as an inducement material to Mr. Breese's acceptance of employment with Clean Diesel in accordance with NASDAQ Listing Rule 5635(c)(4).

About Clean Diesel Technologies, Inc.

Clean Diesel is a vertically integrated global manufacturer and distributor of emissions control systems and products, focused on the heavy duty diesel and light duty vehicle markets. Clean Diesel utilizes its proprietary patented Mixed Phase Catalyst (MPC®) technology, as well as its ARIS® selective catalytic reduction, Platinum Plus® fuel-borne catalyst, and other technologies to provide high-value sustainable solutions to reduce emissions, increase energy efficiency and lower the carbon intensity of on- and off-road engine applications. Clean Diesel is headquartered in Ventura, California and currently has operations in the U.S., Canada, U.K., France, Japan and Sweden. For more information, please visit www.cdti.com.

SOURCE Clean Diesel Technologies, Inc.