Turbodyne Update; Appointment of New Directors - Licensing of New Technology - Status of Turbopac(TM) and Dynacharger(TM)

    CARPINTERIA, Calif., Aug. 19 Turbodyne Technologies, Inc.
(OTC: TRBD) announced today the addition of Andrew Martyn-Smith and Eugene
O'Hagan to the Company's Board of Directors.  Both men are prominent
California businessmen and long-time stockholders in the Company.  Since
reorganization of the Company's Board in July, the Company has been managed on
an interim basis by a three-member Board, all of whose members reside in
Germany.  The addition of Martyn-Smith and O'Hagan is designed to strengthen
the Board and provide increased representation for the Company's U.S.
stockholders.

                                New Technology
    Turbodyne has announced an agreement with Edward M. Halimi, founder of
Turbodyne and inventor of its technology, for assignment of the intellectual-
property and patent rights for a new generation of electrically-assisted air-
enhancement products for internal combustion engines.  The new products
incorporate newly-developed electric-motor and electronics technology as well
as a proprietary computer chip.  They will be marketed by the Company under
the trademarks TurboAir(TM) and TurboRam(TM).
    The Company said the electric motors utilized in the new products are
superior to the older technology because they have no permanent magnets.  As a
result, the Company said, they are more reliable, efficient and cost-
effective.
    The Company said the new technology was developed independently by Halimi
after leaving the Company several years ago as a result of illness.

                  Status of Turbopac(TM) and Dynacharger(TM)
    As previously announced, Turbodyne and Honeywell are involved in
litigation relating in part to the joint-development and license agreements
entered into by the two companies since early 1999 with respect to Turbodyne's
Dynacharger(TM) and Turbopac(TM) technologies.  The litigation consists of a
private antitrust action brought by Turbodyne and an arbitration initiated by
Honeywell.
    Turbopac(TM) regulates and supplements the air available for combustion in
internal combustion engines.  The resulting improvement in the quality of
combustion, especially during acceleration, increases power, improves fuel
consumption and reduces pollution.  Dynacharger(TM) adds a motor and
electronic controls to turbochargers to eliminate "turbo lag" resulting from
the unavailability of exhaust gases during acceleration from start-up.  Turbo
lag creates both an efficiency problem and a safety problem resulting from the
surge of power that occurs when the exhaust gases "kick in."
    According to Turbodyne's trial counsel, the availability to the Company of
the technology licensed to Honeywell is not dependent on the outcome of the
litigation.  If Turbodyne's action is successful, it could reacquire exclusive
rights to the technology.  However, even under the terms of the agreements
relied upon by Honeywell, Turbodyne reacquired the right to use some
technology on July 1, 2001 and since then has reacquired exclusive rights to
the trademark Dynacharger(TM).  The Company will reacquire the rest of the
technology on a non-exclusive basis unless Honeywell obtains supply
commitments from after-market and/or original-equipment manufacturers by
January 1, 2002.  In view of Honeywell's stance in recent discussions between
the parties, there is no prospect that supply commitments will be produced by
Honeywell prior to the contractual deadline.  Thus, although the pending
litigation could affect the royalty obligations of the parties, it is unlikely
to hamper future exploitation by Turbodyne of the technology it pioneered.
    In view of Honeywell's shutdown of the parties' joint-development program,
Turbodyne is pursuing discussions initiated by F.E.V. Technologies of Aachen,
Germany and Detroit, Michigan with respect to commercialization of Turbodyne's
new product lines and, when appropriate, the Turbopac(TM) and Dynacharger(TM)
technologies.  Discussions are also underway with a leading electrical and
electronics equipment manufacturer headquartered in Germany relating to joint
engineering development and manufacturing of electronics.

    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.

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