Turbodyne Announces Settlement Discussions

CARPINTERIA, Calif., Oct. 7, 2003 -- Turbodyne Technologies Inc. (OTC Bulletin Board: TRBD; Berlin: TUD) (the "Company") announced today that it is in discussions with Honeywell Transportation and Power Systems, a division of Allied Signal Inc. ("Honeywell") with respect to a possible settlement of the outstanding disputes between Turbodyne and Honeywell. Details of any settlement will be released if and when a settlement is concluded. There is no assurance that any settlement will be reached and Turbodyne is actively pursuing the completion of the liability phase of the arbitration hearings.