Turbodyne Announces Settlement of Hofbauer Action

CARPINTERIA, Calif., Nov. 15, 2004 -- Turbodyne Technologies, Inc. (OTC Bulletin Board: TRBD; Berlin: TUD) (the "Company") issued the following report today, to update the status of its affairs:

On May 20, 2004, an action entitled Hofbauer vs. Turbodyne Technologies, Inc., et al. (Case No. 1157661) was filed with the Santa Barbara Superior Court (the "Court"). The plaintiff in the above action, Peter Hofbauer, is a former officer of Turbodyne Technologies, Inc. Mr. Hofbauer alleged in his complaint that the Company failed to pay him the sum of $369,265.88 pursuant to the terms of a purported settlement agreement between Mr. Hofbauer and the Company dated May 17, 2002, allegedly made for the purpose of settling amounts owed to Mr. Hofbauer for certain services provided to the Company by Mr. Hofbauer. On August 3, 2004, pursuant to a writ of attachment, the Mr. Hofbauer attached the Company's bank accounts in the amount of $315,000 (the "Attached Funds").

The Company entered into a stipulation with Mr. Hofbauer to resolve and conclude the matter. The stipulation was filed with the Court on October 27, 2004. Pursuant to the terms of the court ordered stipulation:

   *  the Company agreed to transfer 4,000,000 unrestricted shares (the
      "Shares") of its common stock to Mr. Hofbauer.

   *  Mr. Hofbauer agreed to: (i) release $50,000 of the Attached Funds upon
      receipt of the Shares; (ii) sell the Shares through a publicly
      licensed broker at a rate of not more than 400,000 shares per week for
      no less than $0.04 per share until he receives net proceeds of
      $100,000, and at a rate of 200,000 shares per week for no less than
      $0.04 thereafter; (iii) release $25,000 of the Attached Funds upon
      realizing $50,000 from the sale of the Shares, and another $25,000 of
      the Attached Funds for each further $25,000 in net proceeds realized
      by Mr. Hofbauer on the sale of the Shares; (iv) continue selling
      Shares until he receives $296,088.71 plus interest of 10% per annum
      from January 15, 2004 (the "Claim Amount");

   *  If all Shares have been sold and the net proceeds do not fully satisfy
      the Claim Amount, the Company agreed to issue blocks of 500,000
      additional shares to be sold by Mr. Hofbauer until his claim is fully
      satisfied; and

   *  If at the end of six months the Claim Amount has not been fully
      satisfied Mr. Hofbauer has the option of: (i) releasing the Attached
      Funds to the Company and keep and sell without restriction the unsold
      Shares, or (ii) satisfy the remaining balance from the Attached Funds.

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.