Turbodyne Announces Major Management Changes

    CARPINTERIA, Calif., July 16 Turbodyne Technologies, Inc.
(OTC: TRBD) announced that its eleven-member Board of Directors has resigned
in favor of a new three-man Board consisting of German investors Dieter
Neujeffski and Lars Neujeffski, and their associate, Albert Wierz.  The
retiring Board took its action in the belief that the new team would be better
able to put back on a stable footing the company's troubled joint-development
program with Honeywell as well as to meet the company's pressing financial
needs.
    A company spokesman stated that the Board is selecting a new Chief
Executive Officer and Chief Financial Officer, and expects to announce
appointments to those offices at an early date.
    Honeywell, with whom Turbodyne has an agreement for the joint development
and commercialization of Turbodyne's technology, recently commenced
arbitration proceedings to terminate the agreement, citing financial,
managerial and operational difficulties on Turbodyne's part over the past 18
months.  However, Turbodyne's new management and Honeywell have established a
dialogue to resolve Honeywell's concerns by agreement, and a restructuring of
Turbodyne's operations to accomplish that result, including layoffs and new
hires, primarily in the engineering sector, and other changes, is now in
progress.  Meanwhile, the joint-development program is continuing, including
the supplying of parts by Turbodyne to Honeywell.
    Turbodyne Technologies, Inc. is a California-based high-technology company
specializing in the development of charging technology for internal combustion
engines and the development and manufacturing of high-tech assemblies for
electrically assisted turbochargers and superchargers.  Its headquarters is
located in Carpinteria, California and its European office is located in
Frankfurt, Germany.