Turbodyne Technologies, Inc. Progress Report

CARPINTERIA, Calif., April 13 -- Turbodyne Technologies, Inc. (BULLETIN BOARD: TRBD, Berlin: TUD) (the "Company") issued the following progress report today, to update the status of its affairs:

Appointment of Officers

Effective March 26, 2004, Andrew Martyn-Smith was appointed as President, Chief Executive Officer, Chief Financial Officer and Treasurer of the Company and Marsha Chandler was appointed as Secretary. Mr. Martyn-Smith has a background in international advertising and marketing, real estate and investments and has served as a director of the Company since April 13, 2001. Ms. Chandler is a licensed California attorney and has acted as in-house counsel and/or consultant to the Company since 1999. The Company now has a staff of seven persons, including two engineering employees headed by David Willett, the Company's Chief Operating Officer. Mr. Willett managed the engineering department at Pacific Scientific Electro-Kinetics Division, serving nine years prior to joining Turbodyne in 1996. From 1996 to 1999 he served as Vice President of Engineering for Turbodyne, building the company's engineering department and introducing the company's technology and products to the U.S and European automotive communities. In 2000, he became Vice President of Engineering and Operations for Vetronix Corporation, a world leader in automotive diagnostics, where he managed a staff of over 90 engineering and operations professionals. In 2002, Mr. Willett founded and operated a successful five-man consulting company until rejoining Turbodyne on February 2nd of this year. Mr. Willett holds an MBA from Pepperdine University and an MSEE from the University of Wisconsin, Madison.

Annual General Meeting

The Company's annual general meeting is scheduled to be held at the Company's headquarters in Carpinteria, California on June 15, 2004. Shareholders of record at May 5, 2004 will be entitled to vote at the Meeting. At the Meeting, shareholders will be requested to approve a substantial increase in the Company's authorized capital to permit future financings and the granting of options to attract or retain key employees.

Business Development Plan

With the settlement of the outstanding legal disputes between the Company and Honeywell (complete details of which are set out in the Company's Form 8-K filed February 3, 2004), the Company has regained title and exclusive rights to its intellectual property relating to the Turbopac(TM) products and is now proceeding with the development of its business.

The focus of the Company's business plan is to rapidly move to a position of sustainable operations by creating near-term cash flow through aftermarket sales of two improved versions of its Turbopac product. This will give the Company the ability to pursue lucrative longer-term business development activities and licensing agreements with the OEMs and/or major tier-one automotive suppliers, while reducing the need for further equity financing. Operating and development costs are actively being minimized through the prudent use of consultants, and also by outsourcing non-proprietary operations that were previously performed in-house.

The two Turbopac products currently under development have application in the automotive, truck and bus, marine, military, and transport markets. Functional prototypes of these products have already been completed, and production configuration versions are expected to be ready this summer.

The Company is also continuing work under its existing license agreements.

This Press Release may contain, in addition, to historical information, forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These statements are based on management's expectations and beliefs, and involve risks and uncertainties. These statements may involve known and unknown risks and uncertainties and other factors that may cause the actual results to be materially different from the results implied herein. Key factors that could cause actual results to differ materially from those described in forward-looking statements include the inability of the Company to meet requirements under licensing agreements, complete development or commercialization of its TurboPac products or obtain orders from customers.

Readers are cautioned not to place undue reliance on the forward-looking statements made in this Press Release.