Turbodyne Announces Status of Testing of TurboAir X250 By China Faw Group

CARPINTERIA, Calif., July 21 -- Turbodyne Technologies, Inc. (BULLETIN BOARD: TRBD, Berlin: TUD) (the "Company") reports that China Faw Group has completed initial testing of the Company's TurboAir X250. The testing program was arranged by Mediverse International, Inc., which holds an exclusive distributorship agreement for the Company's TurboAir products in China. Mr. David Manning, a senior development engineer for the Company, accompanied Mr. David Lam, the president of Mediverse International, Inc., on a trip to China to demonstrate the benefits of the Company's TurboAir technology when used on the China Faw Group's 7.12 litre turbo diesel engine.

China Faw Group's engine design group conducted testing using the TurboAir X250 on a Chinese 7.12 liter turbo diesel engine during the first week of July. The initial test results demonstrated a 50% decrease in diesel emissions and a 19.5% increase in torque when the engine was operated at steady state. Fuel consumption was observed to be equal or slightly less at the increased torque level when compared to operation of the turbo diesel engine without the TurboAir product.

The Company and China Faw Group have agreed that the initial test results warrant an extensive road test of the turbo diesel engine incorporating the TurboAir X250. China Faw Group plans to install the TurboAir X250 on trucks using its 7.12 litre turbo diesel engines and to test these trucks extensively during the next two months at the high altitude of the Tibet Plateau (elevation 5,200 meters). If the results of these tests are satisfactory to China Faw Group, the Company plans to pursue a further business arrangement with China Faw Group for incorporation of the TurboAir X250 on the 7.12 liter turbo diesel engine as an Original Equipment Manufacturer ("OEM") product. If a successful agreement is concluded, Mediverse International, Inc. would be entitled to a commission as contemplated by the exclusive distributorship agreement. The conclusion of any OEM manufacturing agreement with China Faw Group will be subject to positive test results and the negotiation of a satisfactory license agreement. Due to these factors, there is no assurance that any agreement will be entered into with China Faw Group.

China Faw Group is the largest diesel engine producer in the world. China Faw Group produces more than 200,000 7.12 liter diesel engines and more than 200,000 7.7 liter diesel engines each year.

For more information please contact Mr. Gary Reid at (805) 566-3484.