Turbodyne Expects Formal Russian Purchase order for $30.6M
23 June 1998
Turbodyne Technologies Inc. - Turbodyne Expects Formal Russian Purchase order for $30.6M
WOODLAND HILLS, CA., June 22 /CNW-PRN/ - Turbodyne Technologies Inc.
today announced it has received the official
Export-Import Bank of the United States ``Letter of Interest No. L10783628XX -
Russia,'' dated June 18, 1998, for funding of an expected purchase order of
$30,675,000.00 from Trans Business Group of Moscow, Russia.
Trans Business Group informed Turbodyne in a Letter of Intent that it
intends to order a total of 10,500 Turbopac(TM) models 1500, 2200 and 2500 for
cars, buses and trucks, with deliveries to begin during the third quarter of
1998. Turbodyne has confirmed to Trans Business in writing the terms and
conditions of the Letter of Intent, which provides for the issuance of a
formal purchase order along with a detailed delivery schedule.
The Letter of Intent was pursuant to successful evaluations of
Turbodyne's Turbopac(TM) units installed on Moscow city buses, truck and
passenger cars more than a year ago, and successful certification tests at the
State Scientific Centre of the Russian Federation in the Automotive Equipment,
the Central Automobile and Automobile Engine Scientific Research Institute,
(GNTS NAMI).
Trans Business Group, headquartered in Moscow, Russia, is the premier
Russian transportation services entity, employing about 2,500 personnel in
three main areas of business: 1) Transportation and forwarding services which
utilizes 400 trucks, several railway and reefer terminals, bonded warehousing
and forwarding, along with automotive and truck maintenance and service
facilities; 2) Trading activity in supermarkets, farmers markets and wholesale
trading of food products; 3) Scientific developments and introduction of
advanced American technologies into Russia. The company has branch offices in
St. Petersburg, Russia, United States, Finland, Germany, Belarus and
Uzbekistan.
``Trans Business Group has the technological, logistical, and financial
capabilities for the introduction and widespread distribution of Turbodyne
products in Eastern Europe, and negotiations are in progress for OEM sales of
products in the Russian Federation,'' said Turbodyne Chairman Edward Halimi.
``Trans Business Group will also benefit from matching grants and consumer
credit, which are available from several sources, including the World Bank for
Environmental Programs,'' continued Halimi.
``Our program with the Trans Business Group is one of several such
endeavors which we have been pursuing in the last three years worldwide with
assistance from the United Nations Technology Group and local governmental and
environmental agencies.''
``Turbodyne's recognition by the United Nations Development Program as
the only environmental product with the fuel economy and performance
improvements for worldwide use, and the fact that Turbodyne technology is the
only available alternative for reduction of the global warming effects of the
transportation sector, has generated overwhelming interest in our products in
both the aftermarket and OEM sectors.''
``This order, along with other recent achievements, including our major
OEM contract and U.S. EPA certification, is the culmination of extraordinary
and tireless efforts of our scientists, engineers, consultants and other
employees, which have established Turbodyne as the premier environmental
technologies company worldwide,'' concluded Halimi.
Turbodyne Systems, the high technology division of Turbodyne,
manufactures, designs, markets and develops patented pollution-reduction, fuel
economy and performance enhancing technology for internal combustion engines
in the automotive, transportation, construction, marine, agriculture, mining,
military and power generation industries. Offices and plants are located in
Carpinteria, La Mirada, Encinitas and Woodland Hills, CA; Ensenada and Mexico
City, Mexico; Northants, England; Frankfurt, Germany; Vancouver, Canada; and
Paris, France.
TURBODYNE TECHNOLOGIES INC.
``Edward M. Halimi''
---------------------------
Edward M. Halimi
Chairman
Turbodyne's world wide web address is: http://www.turbodyne.com
Except for the historical information contained in this news release, the
matters discussed herein include forward-looking statements that involve risks
and uncertainties. Among the important factors that could cause actual results
to differ from those indicated in the forward-looking statements are the
receipt of a formal purchase order from Trans Business, the successful
completion of the financing arrangements with the US Export-Import Bank, the
availability and acceptance of the Turbodyne products, the impact of
competitive products and pricing, the performance by the company under
existing purchase contracts and the ability to obtain new contracts, the
ability of the company to contain expenses, conditions within the global
automotive market, general economic conditions, and political changes both
domestically and overseas.