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Turbodyne Receives Russian Purchase Order for $30.675M

2 July 1998

Turbodyne Receives Russian Purchase Order for $30.675M

    WOODLAND HILLS, Ca., July 2 /CNW-PRN/ - Turbodyne Technologies Inc.
announced today that TransBusiness Group of
Moscow, Russian Federation, has formally submitted a purchase order for 10,500
Turbopac(TM) Models 1500, 2200, and 2500 in the total amount of
$30,675,000.00, with an option to purchase an additional 10,500 Turbopac(TM)
units at the same price for a period of 12 months from the date of the
purchase order - July 1, 1998.
    The purchase order, formally accepted and confirmed by Turbodyne today,
provides for the first shipment on October 1, 1998, based on shipping notices
60 days prior to the date of shipment and the entire order to be shipped no
later than 12 months from the date of the order. The purchase order indicates
that all financing arrangements are expected to be finalized 30 days prior to
the first shipment date.
    Under the terms of the purchase order, Turbodyne, with cooperation from
TransBusiness, will immediately establish a technical representative facility
in Moscow for assistance in installations, training and technical assistance
in TransBusiness Group's distribution program.
    The initial installations of Turbopac(TM) units are expected to be on
Moscow Transit buses, with a fleet of more than 30,000.
    ``Turbopac(TM) evaluation units have been installed on Moscow city buses
for more than a year now under a pilot program with satisfactory results,''
said Edward M. Halimi, Chairman, who is scheduled to visit Moscow with Dr.
Joseph Ben-Dak of United Nations Development Program and a technical team for
meetings with officials from the City of Moscow and the Russian Federation's
Transportation Ministry.
    ``Turbodyne's technology is now considered as the only technology
available which can reduce the global warming effect of diesel vehicles.  As
such, it has made users of Turbodyne technology candidates for several grants
and funding assistance from various organizations, including the World Bank,''
continued Edward Halimi. ``Our objective is to equip all Moscow and other
transit buses and trucks in the Russian Federation with Turbopac(TM)
products.''
    The Turbopac's(TM) ability to enable diesel engines to start-up in cold
climates without difficulty eliminates the need to leave an engine running all
night or while not in use, which causes unnecessary fuel waste, air pollution
and engine wear.  The cold start capabilities, along with elimination of black
smoke, dramatic fuel economy, performance improvements, and recent
certifications at the State Scientific Centre of the Russian Federation in the
Automotive Equipment, the Central Automobile and Automobile Engine Scientific
Research Institute, (GNTS NAMI) has created serious demand for the Turbodyne
technology in the region with its high population of diesel vehicles.
    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
successful completion of the financing arrangements, 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.