Realignment of Catalyst Business

RNS Number : 6686E
Catalytic Solutions, Inc.
30 September 2008

The Realignment of Catalyst Business announcement for Catalytic Solutions, Inc. released on 26/09/08 at 0700 under RNS No 3716E has been
re-released to facilitate onward
transmission by third party vendors.

The announcement is unchanged and is reproduced in full below.

For immediate release 26 September 2008

Catalytic Solutions, Inc.

(The "Company" or "Group")

realignment of catalyst business

Catalytic Solutions, Inc. (AIM:CTS and CTSU), the company behind Mixed Phase Catalyst (MPC�) technology, today announces a restructuring
of its Light-Duty Vehicle and Heavy-Duty Diesel Catalyst Business (headquartered in Oxnard, California). The restructuring is aimed at
increasing the Group's focus on targeted growth opportunities, in addition to streamlining product development and production operations,
whilst accelerating progress towards Group profitability.
The restructuring encompasses the following:

* Creation of dedicated product-focused teams, improving both development cycle times and alignment of the company's technology
development with end-user needs, necessary following 2009 and 2010 expected sales growth that has resulted from recent contract wins
* Establishment of a Catalyst Innovation Team to streamline and strengthen development of next generation technology for the Group
* Consolidation of operations at head office, resulting in workforce reduction and ongoing cost savings without impacting ability to
support group operations and customers
* Realignment of geographic footprint to reflect developments in customer base
* Relocation of Newmarket, CAN operations to a leasehold facility in Markham, CAN; and
* Flexible, low-cost factory in Czech Republic going online in 2009, improving service to European customers currently served from
North America
* New ERP systems upgrade, going live in October 2008, enabling improved production planning and efficiency of resource allocation

The announced changes will better allow CSI to continue to invest in innovative catalyst and systems technology for the light-duty
vehicle, energy and heavy-duty diesel markets, enabling the continued roll out of new products for these markets.

The programme will deliver approximately US$4.0 to $5.0 million in annual cost savings through a combination of work force reduction,
consolidation of premises in Oxnard, California and related cost reductions for fiscal year 2009. The company expects to record a pre-tax
restructuring expense of approximately $0.6 million during the third and fourth quarters of 2008. These restructuring costs are expected to
be offset by anticipated savings from this programme in the fourth quarter this year.

Commenting on the initiative, Charles F. Call, Chief Executive Officer of Catalytic Solutions, Inc. said:

"The Catalytic Solutions Group is now on a path of rapid revenue growth with significant new business streams being added over the past
six months. The Board is focussed on translating this success into bottom-line profitability and increased cash generation. Our products,
market presence and compelling technology are valued by more and more customers in our target markets, and we look to the future with
confidence as the Group becomes more efficient against a challenging global economic outlook."
For further details, please contact:

Catalytic Solutions, Inc. Canaccord Adams Buchanan Communications
Charlie Call, Chief Robert Finlay Charles Ryland
Executive Officer Bhavesh Patel Ben Willey
Steve Golden, Chief Christian Goodbody
Technical Officer
Nikhil Mehta, Chief
Financial Officer Tel: 020 7466 5000
Tel: 020 7050
6500
Tel: +1 (805) 486-4649

About Catalytic Solutions, Inc.
Catalytic Solutions operates in the field of catalysis, offering catalyst-based solutions for clean utilization of fossil fuels.
Catalytic Solutions was successfully admitted to AIM (AIM:CTS and CTSU), a market operated by the London Stock Exchange plc, in November
2006. The Company is focused on the creation, manufacture and supply of emission control catalysts for motor vehicle (gasoline and diesel
engines) and energy applications (gas turbines, boilers, gensets). Catalytic Solutions' catalysts are designed to deliver high value to
customers while benefiting the global environment through air quality improvement, sustainability and energy efficiency. With over eight
million parts supplied to customers since 1996, Catalytic Solutions' proven technical and manufacturing competence meets auto makers' most
stringent requirements. In December 2007, the Company acquired Engine Control Systems, a manufacturer of technology-based emission control
systems giving Catalytic Solutions access to European manufacturing, product testing and development. Engine Control Systems develops, manufactures and supplies a full range of custom-built
technology-based and standard emission control products for original equipment, aftermarket and retrofit applications. The products are used
for treating harmful exhaust emissions primarily in the heavy-duty diesel market. The technology-based products change or modify the nature
of the exhaust gases, thereby reducing hazardous elements rather than simply attenuating noise. In August 2006, the Company acquired certain
tangible and intangible assets from Applied Utility Systems and established Applied Utility Systems, Inc. (a wholly owned subsidiary of the
Company) as the operating company for the new business. Applied Utility Systems is engaged in designing and installing systems related to
the clean and efficient use of fossil fuels outside of their use in motor vehicles. The Company currently has operations in the USA, Canada,
France, Japan, Sweden and an Asian Joint Venture.

This information is provided by RNS
The company news service from the London Stock Exchange

END

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