A new Ag/Al2O3 catalyst for removing NOx in lean exhaust gas was developed. Oxidized Ag/Al2O3 catalyst is highly active for reduction of NOx with ethanol and propene, whereas reduced Ag/Al2O3 catalyst is less active for these reactions. Selectivity to Nz is also high on the oxidized Ag/Al2O3 compared to that on the reduced Ag/Al2O3. XRD and SEM studies of these two types of Ag catalysts suggest that oxidation induces an interaction between Ag and the support, where the particles are grown in large size. In contrast, the metallic Ag particles are finely dispersed by the reduction process. Although dispersion of Ag particles is decreased by the oxidation process, the catalytic activity is increased; This suggests that the Ag-alumina sites created in the high temperature oxidizing environment are active in catalytic reduction of NOx.