Tekron Inc. Engages in Third Joint Venture with Vydexa Industrials Corporation and Herton Design Group Inc.

LONDON & ONTARIO, Canada--Aug. 1, 20046, 2004--Tekron Inc. (OTC Bulletin Board: TKRN - News; Berlin: TKRN.BE - News) is pleased to announce that Tekron of London, Ontario has finalized and executed a third joint venture agreement with Vydexa Industrials Corporation, of London, Ontario. Vydexa has acquired the patent-pending Herceg, planetary motion, internal combustion engine (ICE) from Herton Design Group Inc.

The Herceg engine's revolutionary, planetary motion design, increases power by a whopping 100 %, decreases fuel consumption and significantly reduces air emission gases, relative to the conventional ICE. The result is a new universal combustion engine, in the two-stroke regime, that can be utilized with any type of fuel source, including alcohols, hydrocarbons, diesels and hydrogen. Real life applications of the Herceg engine include power generators for lawnmowers, automobiles, boats, ships, airplanes and stationary power plants.

The Herceg engine, rotating in a novel planetary sequence results in very high torque over a wide rpm range. The Herceg engine has much more power than the four-stroke ICE with half the displacement. Many motor companies have unsuccessfully tried to make a good, clean two-stroke motor. The lack of success was due to the engine cycle being unable to accomplish its maximum output through only 360 degrees of motion.

For clarity, a short overview is relevant: In a two-stroke motor, with the aid of a supercharger, combustion gasses are emitted in a very short time span when the intake and exhaust valves are overlapping, a short time indeed, corresponding to only 5 - 6 degrees of crankshaft rotation. Toyota's experts designed their 'S2', two-stroke engine. Toyota used a cylinder head that was very similar to a four-stroke engine cylinder head, so that the intake and exhaust strokes only occurred during half of the crankshaft's work. Based on this configuration there are limited quantities of compressed air introduced into the combustion chamber; the potential torque that can be realized is therefore lowered.

Chrysler's experience paralleled Toyota's: Chrysler's EBDI (external breathing direct injection), gas engine was a wet-sump, externally scavenged engine with direct injection at 1,000 psi. The EBDI engine worked well at low rpms but lacked mid and high-range engine speeds as there was not enough time for the ideal air/fuel mixture charge to form; variable injection timing was therefore required. The EBDI engine was ineffective as exhaust fumes could not be removed through the cylinder exhaust valves efficiently enough, given the limited time available for their expulsion. Chrysler pursued their idea further when they used a more powerful supercharger (90,000 rpms), higher pressure fuel pump and injectors (2,000 psi system) in order to obtain a better, more effective, air/fuel mixture. Despite its efforts, Chrysler shelved the project, primarily because the quantity of air was simply not sufficient at higher rpms.

Notwithstanding Toyota's and Chrysler's experience, the Herceg engine, accordingly, solves the cited fundamental deficiencies in the described designs. This Herceg engine design has - relative to the same piston stroke of a conventional two-stroke ICE - a much greater period for the exchange of gases to take place and similarly, a greater period for the intake stroke to deliver a greater quantity of the air/fuel mixture. Due to the Herceg engine's planetary motion migration, the time for engine intake and exhaust functions is increased by a level of six to seven (6-7) times, relative to the conventional two-stroke regime, thereby completely eliminating the deficiencies of the heretofore conventional two-stroke design ICE.

The Herceg engine is economical to manufacture and shall use existing off-the-shelf electronic components for injection and ignition. The Herceg engine is very easy to maintain and extremely suitable for all means of transportation. Coupled to the increased power, lower emissions and enhanced fuel economy, the Herceg engine promises dominion over existing competitors.

About Tekron:

Tekron, Inc., http://www.tekron-inc.com, and its subsidiaries are engaged in the commitment to the preservation of the environment through the use of ecologically safe and efficient technology.

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The information contained in this press release may contain ``forward-looking statements'' within the meaning of the U.S. Federal Securities Laws. Such statements are based on the current expectations of the management of Tekron, Inc. only, and actual results may differ materially.

The Canadian Venture Exchange has not reviewed and does not accept responsibility for the accuracy of this news release. U.S. SEC exemption number is 12g3-2 (b) 82-5137. Special Note: Management believes certain statements in this press release may constitute ``forward-looking statements'' within the meaning of the Private Securities Litigation Reform Act of 1995. These statements are made on the basis of management's views and assumptions regarding future events and business performance as of the time the statements are made. Actual results may differ from those expressed or implied. Such differences may result from actions taken by the company prior to its current fiscal year end, as well as from developments beyond the company's control, including changes in global economic conditions that may, among other things, affect the performance of the company's anticipated acquisitions or future business. In addition, changes in domestic competitive and economic conditions may also affect performance of all significant company businesses.