Reg Technologies, Inc./REGI U.S., Inc. Progress Report

    COLUMBUS, Ind.--Aug. 21, 2001--Reg Technologies, Inc. (CDNX:RRE.V)(OTCBB:REGRF) and its U.S. subsidiary REGI U.S., Inc. (OTCBB:RGUS) wish to announce that the following progress report has been received by our Chief Engineer, Patrick Badgley regarding the Rand Cam compressors, Diesel engines, Cold Turbines, and pumps.
    Due to the sensitive nature of the discussions with potential interested licensees and with pending private and commercial funding and teaming arrangements for these projects the company has to be confidential in describing both the companies and projects in order to protect the interests and comply with non-disclosure agreements that we have with these organizations.
    RAND CAM(TM)FUEL CELL AIR COMPRESSOR -- The prototype air compressor requested by a major fuel cell manufacturer has been fabricated and is currently undergoing additional testing at REGI U.S.'s facility in Detroit. At the completion of this effort the compressor will be delivered to a compressor manufacturer for evaluation and testing as a first step towards this manufacturer becoming a licensee to manufacture compressors for our applications. The Company is currently in discussions with three additional fuel cell manufacturers, both in the U.S. and abroad who are interested in our compressor technology. Additional prototypes will be completed for evaluation.
    RAND CAM(TM)DIESEL ENGINES -- REGI has collaborated with a major ceramics supplier to bid on a Government sponsored research program for a small ceramic Diesel engine. Details of this program will be released later in the event that the Company is awarded the contract.
    We are currently in negotiations for the design of a slightly larger engine for a commercial customer. In regard to this project REGI will design the engine and it will be manufactured and tested by the customer. Again details cannot be released due to the wishes of the customer.
    A project to update the existing 125 horsepower Rand Cam Diesel engine to incorporate the latest technology, "Winged Rotor Concept" is about to get underway with a commercial customer for demonstration purposes. This project is planned to be financed completely with outside funding.
    RAND CAM(TM)AIR CONDITIONING COMPRESSOR -- As previously reported the air conditioning compressor for heavy-duty bus applications was completed and delivered to the Trans Air Manufacturing Company for testing in January of this year. Unfortunately, the testing has not been started. Pat Badgley has recently visited this company and was assured that Trans Air is still VERY interested in the compressor and will start the testing now that the busy season for their industry is coming to a close.
    RAND CAM(TM)COLD TURBINE ENGINES -- Designs have been completed for three different applications of this new engine concept. The Cold Turbine is the use of a positive displacement Rand Cam compressor and a positive displacement Rand Cam expander in a Brayton cycle (gas turbine) machine. Much interest is being shown in this technology following both our press release and a recent article in Ward's Engine Update.
    RAND CAM(TM)PUMPS -- A large end user has provided desired performance characteristics for a 300 gallon per minute pump application that is ideally suited to the Rand Cam design. A special pump is now being designed for this large flow application. The customer and the application have to remain confidential for now. Information will be released once an agreement is signed.

    ABOUT REG TECHNOLOGIES, INC./REGI U.S., INC.

    Reg Technologies, Inc. jointly owns the worldwide rights to the Rand Cam(TM)rotary technology with its U.S. subsidiary REGI U.S., Inc. and is currently incorporating its latest winged rotor technology to dramatically improve sealing and reduce friction in the diesel Rand Cam(TM)engine. The Company has designed and built an air pump for fuel cell applications as well as an air pump for the lumbar seats in automobiles and has filed for a patent for a Hydrogen Separator Technology. The Company has also built a compressor for air conditioning units for buses.
    The Company's goal is to license the technology and/or to participate in joint ventures to manufacture specific Rand Cam(TM) applications and the Hydrogen Separator Technology.

    ON BEHALF OF THE BOARD OF DIRECTORS

    John Robertson
    President

    The Canadian Venture Exchange has neither approved nor disapproved of the information contained herein.

    Statements in this press release regarding REGI's business which are not historical facts are "forward-looking statements" that involve risks and uncertainties, including the impact of competitive products and pricing, the need to raise additional capital, uncertain markets for the company's products and services, the company's dependence on third parties and licensing/service supply agreements, and the ability of competitors to license the same technologies as the Company or develop or license other functionally equivalent technologies.