---

Turbodyne Technologies Inc. Announces Supply Agreement Signed With Navistar International

27 August 1997

Turbodyne Technologies Inc. Announces Supply Agreement Signed With Navistar International

     LOS ANGELES, Aug. 27 /CNW-PRN/ - Turbodyne Technologies Inc.
                               Trading Symbols: TRBDF (NASDAQ) TRBD (EASDAQ)
     Turbodyne Technologies Inc. (``Turbodyne'') announced today that its
light metals division has entered into a comprehensive supply agreement with
Navistar International Transportation Corp. (``Navistar'') for the supply of
100% of Navistar's original equipment and service requirements for engine
aluminum castings.  The agreement is for an initial term of 5 years and may be
extended for additional 3 year terms thereafter, upon mutual agreement of the
parties.
     Although the supply agreement does not allow for minimum quantities,
based on discussions with representatives of Navistar and internal development
programs, management believes, subject to Turbodyne continuing to meet quality
and competitiveness criteria, the supply agreement could provide over $50
million in revenues to Turbodyne during the initial term.
     Navistar International Corporation, with world headquarters in Chicago,
is the leading North American producer of heavy and medium trucks and school
buses. Navistar maintains its position as the sales leader in the combined
United States and Canadian retail markets for medium and heavy trucks and
school buses. Navistar is also a worldwide leader in the manufacture of
mid-range diesel engines that are produced in a range of 160 to 300
horsepower.
     Turbodyne is an integrated manufacturing company specializing in the
design, manufacture and marketing of high technology performance improvement
and anti-pollution devices for automotive, marine and industrial applications.
Turbodyne's light metal division is an accredited manufacturer of machined
permanent mold and sand-cast aluminum products for the automotive industry.
     Turbodyne's integrated manufacturing capabilities also include precision
machining, electronic circuit boards, brushless motors, high efficiency
centrifugal fan modules and custom alloy wheels for the automotive
aftermarket.  Its offices and plants are located in Carpinteria, Calif.; La
Mirada, Calif.; Encinitas, Calif.; Ensenada, Mexico; Northants, England;
Vancouver, British Columbia; and Monchengladbach, Germany.

      Turbodyne's World Wide Web address is http://www.turbodyne.com

     Turbodyne Technologies Inc.

     Edward M. Halimi
     President

     With the exception of the historical information contained in this news
release, the matters discussed above include forward-looking statements that
involve risk and uncertainties.  One important factor that could cause actual
results to differ from those indicated in the forward-looking statements would
be a decrease or failure of expected order flow from Navistar or the failure
of Turbodyne to timely manufacture products subject to the supply agreement.
The failure of any of these factors would cause actual results to differ
materially from the forward-looking statements discussed above.

SOURCE: Turbodyne Technologies Inc.