Turbodyne Files Multibillion-Dollar Antitrust Action Against Honeywell

    CARPINTERIA, Calif., Aug. 15 Turbodyne Technologies, Inc.
(OTC: TRBD) announced that it has today filed a private antitrust action
against Honeywell International, Inc., seeking damages of up to $9 billion.
The action bases its claim for damages and injunctive relief on alleged
suppression by Honeywell of Turbodyne's Dynacharger(TM) and Turbopac(TM)
technologies.
    Turbodyne and Honeywell entered into joint-development and license
agreements relating to the Dynacharger(TM) technology in January 1999.  The
agreements were extended to Turbopac(TM) in December 1999.  In connection with
both the original agreement and extension, Turbodyne's complaint says
Honeywell represented that its intention was to commercialize both product
lines as rapidly as possible with a view to making airflow-enhancement devices
standard equipment on substantially all internal combustion engines
manufactured worldwide.
    According to the complaint, however, Honeywell did not proceed in good
faith to commercialize either group of inventions.  Rather, it used its
position as Program Manager of the joint development program to block such
commercialization and to suppress Turbodyne's technology.  Honeywell's motive
for doing this, the complaint alleges, was to avoid disruption of Honeywell's
existing multibillion-dollar turbocharger business.
    The Turbopac(TM) technology regulates airflow in automobile, truck and
other internal-combustion engines in order to increase fuel efficiency and
power and to eliminate pollution.  Dynacharger(TM) boosts airflow in
turbocharged engines to eliminate the phenomenon known as "turbo lag."  That
phenomenon, which creates both efficiency and safety problems, results from
the fact that the exhaust gases used in turbochargers are least available
during acceleration from start-up when they are most needed.
    According to Turbodyne's complaint, Honeywell is the world's leading
supplier of air-enhancement devices for use in internal combustion engines,
supplying some 60% of the world market.  Approximately 60 million engines for
automobiles and trucks are produced annually, of which approximately
10 million utilize turbochargers.
    Turbodyne alleges that Honeywell's suppression of its technology, which
cost its stockholders $100 million to develop, damaged the company by
depriving it of income and prospective income that would have given the
company a market value of up to $3 billion.  Under the Clayton Act, which
authorizes private antitrust damage suits, actual damages are trebled.
    Honeywell initiated arbitration proceedings against Turbodyne in July 2001
seeking termination of the joint development agreement and unspecified
damages.  Turbodyne's complaint in federal court alleges that the dispute
between the parties is not arbitrable and that the filing of the arbitration
was in itself a further attempt to restrain trade and to monopolize in
violation of sections 1 and 2 of the Sherman Antitrust Act.  Turbodyne
contends that the agreements between the parties were invalid at the outset,
so that Honeywell's rights in the Turbodyne technology should be terminated
and exclusive rights in the technology returned to Turbodyne.

    The headquarters of Turbodyne Technologies, Inc. is located in
Carpinteria, California and its European office is located in Frankfurt,
Germany.

    This release contains forward-looking statements as defined in Section 21E
of the Securities Exchange Act of 1934, including statements about future
business operations, financial performance and market conditions.  Such
forward-looking statements involve risks and uncertainties inherent in
business forecasts.

Click here