Clean Diesel Technologies (CDTI) Comments on MECA Announcement Reporting Slower Sales

August 30, 2012 4:15 PM EDT
Clean Diesel Technologies, Inc. (Nasdaq: CDTI) ("CDTi") commented today on an announcement made by the Manufacturers of Emission Controls Association ("MECA") regarding industry sales of diesel particulate filters ("DPFs") under the mandatory California Truck and Bus Regulation.

Earlier this month, MECA issued a press release which highlighted the slow pace of diesel retrofit sales in California. This is consistent with the sales volumes experienced by CDTi this year, as discussed in the Company's second quarter 2012 earnings call. CDTi believes this may, in part, have been attributable to the level of operator education and the intensity of state enforcement actions. The Company supports the recent declaration by the California Air Resources Board ("CARB") designating the month of August as "Gear Up for Clean Truck Month." CARB has initiated a multi-agency campaign to ensure that trucks traversing the state's highways are in compliance with state air pollution laws.

In the press release issued by MECA, it indicated that the total number of verified DPFs sold by MECA member companies in California in the first half of 2012 was 3,030, much lower than the volume expected by retrofit suppliers. The MECA press release also cited CARB projections that approximately 12,000 filters would be installed in 2012 and that approximately 66,000 filters overall would be installed from 2011 through 2015.

"We are very pleased and supportive of CARB's efforts to reach out and better inform truck operators about the importance of complying with the state mandated diesel emission regulation and enforcement timelines," said Craig Breese, Chief Executive Officer of CDTi. "The rate of verified DPFs sold has been below ours and the industry's expectations. However, while we have been successful in winning fleet operator business, we expect the trends to continue through the third quarter. We trust that the targeted and coordinated efforts by multiple state agencies will stimulate operators to initiate steps to comply with the January 1, 2013 deadline and drive sales in the fourth quarter and beyond."

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