Exhibit 1.0


                 CLEAN DIESEL TECHNOLOGIES CLOSES ARIS(TM) 2000
                    LICENSE AGREEMENT FOR STATIONARY, MARINE
                            AND RAILROAD NOx CONTROL

STAMFORD, CT (February 2, 2000)...Clean Diesel Technologies, Inc. (EBB:CDTI)
announced today that it has finalized the previously announced license agreement
with Ridgefield, CT-based RJM Corporation. RJM is a design, engineering and
project management company providing innovative high technology solutions to
energy and emissions problems for utility and industrial clients. Under the
agreement, RJM will sell CDT's ARIS(TM) 2000 NOx control system for all
stationary, marine and locomotive applications in North, Central and South
America.

         The agreement calls for CDT to transfer its stationary NOx business and
inventory along with two technical staff to RJM. In return, CDT will receive an
initial $350,000 payment for license rights and ARIS inventory. The agreement
also provides CDT the opportunity to earn an additional $1,000,000 in license
revenue based on the sales performance of the ARIS 2000 over the next 36 months.
In addition to the license payments, CDT will receive an ongoing royalty on all
future ARIS 2000 sales. CDT retains all rights to the ARIS technology for mobile
applications worldwide as well as stationary applications in all other
territories not licensed to RJM.

         According to CDT Chief Executive Officer Jeremy Peter-Hoblyn, "RJM is a
perfect partner to help commercialize the ARIS technology in the licensed
markets. Their engineering and project management capabilities as well as their
intimate knowledge of urea-based NOx control technology will assure end users of
excellence in design and implementation of the ARIS 2000 technology for
reductions in NOx emissions from stationary, marine and locomotive diesel
engines."

         Separately the company announced the availability of licenses under its
U.S. and international patent portfolio related to the reduction of NOx from
on-highway and off-road mobile diesel engines using its low cost ARIS 2000
urea-based SCR technology. The company is targeting its licensing efforts at
Tier 1 heavy-duty truck component suppliers, SCR catalyst suppliers or a
consortium of diesel engine manufacturers.


         According to CDT Chief Operating Officer Jim Valentine, "SCR offers
demonstrated NOx reductions of 70-90 percent on both transient and steady state
test cycles."

         CDT sees licensing as the quickest way to commercialization of its ARIS
2000 injector technology for vehicle applications.

         Valentine added, "Broad application of the patented ARIS 2000 return
flow injector concept could support development of an industry standard for
reagent injectors while allowing competitive features to evolve around vehicle
packaging, integration with engine controls and selection of specific SCR
catalyst by engine and vehicle manufacturers. This would ultimately reduce costs
and simplify field service and maintenance."

         CDT was recently granted four U.S. patents and a notice of allowance on
urea-based SCR. U.S. Patent No. 5,976,475 covers a fundamental concept of a
solenoid actuated, return flow urea injector for precise injection of urea-based
reagents into the exhaust gas upstream of a SCR catalyst. The return flow
concept provides cooling of the injector circuit which prevents hydrolysis of
the urea in the injector and lines and prevents plugging. This is accomplished
without the need for a secondary cooling circuit or compressed air.

         Several prototypes have been fitted to heavy-duty vehicles and more
than a dozen systems are in durability testing with engine manufacturers and
catalyst companies. U.S. Patent No. 5,968,464 provides an additional enhancement
by converting aqueous-based urea reagent to ammonia gas through use of a
pyrolysis chamber which assists in the decomposition of urea to ammonia in the
exhaust gas stream.

         U.S. Patent No. 5,924,280 combines the use of exhaust gas recirculation
(EGR) with urea-based SCR to achieve ultra low NOx emissions with minimum fuel
economy penalty and lower levels of reagent consumption.

         The allowed patent application combines the use of a platinum catalyzed
diesel particulate filter with SCR for simultaneous particulate and NOx control.
Recent engine testing on a similar system using the ARIS 2000 and a particulate
filter demonstrated 85 percent NOx and 90 percent particulate reduction.

         CDT also intends to offer for license its U.S. Patent No. 5,809,775
which covers the use of solid urea and ammonia reagents; and, a pending
application on converting liquid urea to ammonia gas for injection into diesel
engine exhaust.


         Separate development licenses are being offered for CDT's LOE NOx(TM)
diesel/water emulsion technology and "enhanced" emulsion technology which
expands on the use of an emulsion to carry urea or ammonia based reagents. These
technologies provide low cost NOx reductions of 15-30 percent from diesel
engines. Under U.S. Patent Nos. 5,404,841, 5,584,894 and 5,535,708 the emulsion
containing reagent is directly combusted in the engine with the water serving
both to drop the peak cylinder temperature and to protect the reagent. In
another U.S. Patent No. 5,809,774 the reagent is separated out from the fuel and
injected into the exhaust upstream of a SCR catalyst.

         For further information on license opportunities, contract Jim
Valentine of CDT at jvalentine@cdti.com or by calling the CDT office in
Stamford. CT.

         Clean Diesel Technologies, Inc. is a development-stage company with
patent-protected products that reduce emissions from diesel engines while
simultaneously improving fuel economy and power. R&D efforts and products are
grouped into two categories: Platinum Plus fuel catalysts and NOx Reduction
Systems. Platinum Plus is a registered trademark of Clean Diesel Technologies,
Inc.

Certain statements in this news release constitute "forward-looking statement"
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 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.