KleenAir Systems Inc. announced a joint agreement with China South Industries Group and Chengdu Greenland Environmental Protection Technology Ltd.

The agreement covers catalytic converters for exhaust treatment for the Chinese OEM automobile market. The principal area of coverage initially will be South and Central China.

China South Industries is one of the major industrial conglomerates with major interests in the automotive industry, including a joint venture with Ford to manufacture vehicles in Chongqing, ownership of the China Jialing Group, one of the largest manufacturers of motor cycles with annual output of some 2 million bikes, and many other significant relationships in the automotive and environmental fields.

Chengdu Greenland Environmental Protection Technology Ltd specializes in catalytic converters, working with some of China's major domestic automobile manufacturers. As part of the new government regulations requiring Euro 3 emission standards, these companies are looking for products that will perform to the new standards, can be manufactured locally, and will at the same time be more competitive price-wise than existing products. "We look forward to introducing advanced catalytic technology from KleenAir to our Chinese OEM automobile customers," said Wen Bo Chen, President, "and have started a test and evaluation program with a major manufacturer." These customers have a total annual requirement for catalytic converters and related pollution control products in excess of 250,000 units.