Turbodyne Announces Licensing Agreement With IHI

TOKYO and CARPINTERIA, Calif., Sept. 11, 2002- Turbodyne Technologies Inc. announced that a licensing and technology transfer agreement with IHI (Ishikawajima-Harima Heavy Industries Co., Ltd.) has been entered and formally signed by the parties.

Under the terms of the agreement Turbodyne is receiving an initial cash payment for licensing of the technology for "Motor Assisted Turbocharging" and will receive an additional cash payment and royalties based on the number of units manufactured on a continuing basis upon entering into mass production by "IHI".

The agreement provides for the manufacture and sale of pre-production units by Turbodyne, for which Turbodyne is receiving advance payment upon signing of the agreement.

IHI has received strong interest from the automotive industry for the manufacturing and sales of Motor Assisted Turbocharger for the O.E.M supply.

IHI is a leading manufacturer of turbocharger, supercharger and other industrial equipment for the automotive, marine and other industrial sectors on a worldwide basis, with facilities in Asia, Europe and Americas.

Turbodyne's Dynacharger product line developed by Turbodyne in 1995 has been the subject of development programs with other leading manufacturers and in 1999, received the Grand Prix for technological advancement in the automotive industry.

IHI and Turbodyne are committed to rapid commercialization of the Dynacharger product line under the terms of the new agreement.