Clean Diesel Technologies, Inc. CEO Interview: Michael Asmussen

• On 12:43 pm EDT, Tuesday September 22, 2009

67 WALL STREET, New York - September 22, 2009 - The Wall Street Transcript has just published its Alternative Energy/Clean Energy/Power Generation/Utilities Report offering a timely review of the sector to serious investors and industry executives. This 83 page feature contains expert industry commentary through in-depth interviews with public company CEOs, Equity Analysts and Money Managers. The full issue is available by calling (212) 952-7433 or via The Wall Street Transcript Online.

Topics covered: Long Term Perspective on Alternative Energy Industry -- Leading Indicators for Alternative Energy Components Companies -- Mergers and Acquisitions in the Alternative Energy Industry -- Break Even Business Fundamentals for Carbon Free Energy Providers -- Development of Carbon Free Energy Production Infrastructure -- NAT GAS Act -- New Players in the Alternative Energy Industry -- Solar Power Cell Manufacturers Market Strategy -- Demand Response for Raw Materials for Solar Cell Production -- Alternative Energy Investment Opportunities -- Multiple Stock Winners in Carbon Free Production Industry -- Government Funding of Alternative Energy Power Providers -- Chinese Solar Energy Companies -- Alternative Energy Hedge Fund Investors -- Commodity Cycles -- Determinants of Market Valuations in the Alternative Energy Production Industry -- Carbon Emissions Statistics -- Energy Efficiency Statistics -- Innovations in Solar and Wind Power Generation -- Business Economics for Methane Based Power Generation -- Electric Vehicles Projections and Statistics-- Cap and Trade Projections and Statistics -- Development of Battery Technology -- Regulatory Environment Developments for Solar, Wind, and Alternative Energy -- Hybrid Vehicles Development and Sales Projections

Companies include: Tanfield (TAN.L); Smith Electric Vehicles U.S.; Valence (VLNC); Spire (SPIR); Newport (NEWP); MYR Group (MYRG); Primoris (PRIM); Tetra Tech (TTEK); EnerNOC (ENOC); Comverge (COMV); EnergyConnect (ECNG.OB); Calgon Carbon (CCC); and Ener1 (HEV); Westport Innovations (WPRT); Clean Energy Fuels (CLNE); Fuel Systems Solutions (FSYS); FuelCell Energy (FCEL); FEI Company (FEIC); Veeco (VECO); ATT (ATT); Landi Renzo (LR.MI); Teleflex (TFX); Royal Dutch Shell (RDS.A); Wal-Mart (WMT); Pepsico (PEP); FuelMaker; Chevrolet; GM; Honda (HMC); Itron (ITRI); Siemens (SI); American Superconductor (AMSC); GE (GE); and ABB (ABB);

In the following brief excerpt from the 83 page report, Michael Asmussen, CEO of Clean Diesel Technologies, Inc., discusses the company and the outlook for the sector and for investors.

TWST: Please begin with a brief overview of the company and a bit about its history.

Mr. Asmussen: Clean Diesel Technologies is a cleantech company engaged in developing solutions to reduce emissions and increase energy efficiency in most diesel applications. The company was founded in 1995. It was a spinoff from a company called Fuel Tech that focused on similar technologies in the stationary sector. In essence, Clean Diesel Technologies inherited the intellectual property focused on the mobile market. We are now publicly traded on the NASDAQ and our ticker symbol is CDTI. Since 1995 we have invested roughly $50 million in technology and now own more than 200 patents worldwide. Last year we had revenues of $7.5 million, and we are currently active in both the retrofit and OEM market sectors.

TWST: You're shifting your strategic focus to the retrofit market. Would you talk about the customer wins you've had in that market and where you see the best opportunities going forward?

Mr. Asmussen: You hit the nail right on the head. We definitely see the future of the company in the global retrofit market. We feel that the current regulatory trends indicate further strengthening of emissions regulation worldwide, and that will hopefully culminate in a global pact. When you consider the fact that over 200 million diesel engines are in service today, we feel that the market opportunity for retrofitable emissions reduction products will continue to grow well into the future. Europe and the United States are really leading the regulatory cause and have been the first markets for these products. But we're confident that soon other countries will follow suit and perhaps even exceed them with regard to market opportunities. Our goal is to create a situation where we have a full portfolio of products that are globally verified and bring unique value to the market.

TWST: In your Q2 earnings release, you said you are planning to overcome some gaps in your technology and product portfolios. What are those new technologies and products?

Mr. Asmussen: Absolutely, and what I was referring to in those comments is really a situation where we were going through an identity crisis. The company was focused on intellectual property, but more so focused on the OEM markets and really not paying close attention to the opportunities in the retrofit segment. As a result, product development was slowed and we weren't able to aggressively pursue the early stages of the European and U.S. retrofit markets beyond our efforts in the London Low Emission Zone, where we were the second largest supplier to Transport for London. Gaining additional product verifications for Europe and the United States is critical to our business moving forward. Our goal is to create a full portfolio of products where we are addressing not only particulate matter products but also NOx reduction and other innovative products made possible by our portfolio of intellectual property.

TWST: What's your best read on how quickly some of these new product developments could hit your bottom line?

Mr. Asmussen: Usually we plan on a verification program taking about a year when you factor in both the test protocol and the completion of the verification application itself. We're well into the process here in the United States with both California and the EPA, so I would expect that we would achieve verification early next year. Likewise we have begun the process in other areas of Europe as well in Asia. In terms of seeing an effect on the bottom line, I would expect that we would see some of the fruits of that labor yet this year, and then the majority of that then hitting in 2010.

TWST: Tell us about your shift in focus to customers and in the mining, rail and marine sectors.

Mr. Asmussen: The foundation of our product technology is a platinum/cerium-based fuel borne catalyst (FBC). The FBC allows us to do a number of different things with regard to filter system performance and energy efficiency. In the off-road segment, the FBC called Platinum Plus is an EPA-registered fuel additive, and used primarily for fuel efficiency and particulate matter reduction. The product is well suited for engine applications in rail, marine and mining. We are finding that it provides more benefit in applications where you have a very stable operating pattern. As a result, we've taken a very strategic approach and decided to focus on the areas where there is additional benefit and very visible value to the end user. Platinum Plus typically increases fuel efficiency by 5% to 12%, depending on variables such as engine type and fuel quality, and also reduces particulate matter by about 20% through improved combustion characteristics. As emission regulations reach the off-road segments in the coming years, we can use the relationships we're building now to promote additional filter system business.

The Wall Street Transcript is a unique service for investors and industry researchers - providing fresh commentary and insight through verbatim interviews with CEOs and research analysts. This 83 page special issue is available by calling (212) 952-7433 or via The Wall Street Transcript Online .

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