The high velocity and high dilution exhaust system uses a centrifugal fan provided with a tapered nozzle. The nozzle compresses the airstream exiting the fan to increase back pressure and velocity. The air flow from the fan enters a stack having a venturi further increasing the velocity and decreasing the pressure. The decrease in pressure causes a suction, allowing the introduction of ambient air to mix with and dilute the output of the fan. The total discharge from the exhaust stack has a high velocity resulting in a plume height and effective height of the exhaust before dispersion occurs.