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Turbodyne Announces Talks Toward Alliance or Sale

20 July 1998

Turbodyne Announces Preliminary Discussions

    WOODLAND HILLS, Calif., July 20 /CNW-PRN/ - Turbodyne Technologies Inc.
announced today that it is engaged in preliminary
discussions with several major industrial concerns regarding the possible
establishment of a strategic alliance with, and the possible acquisition of a
minority interest in Turbodyne by, one or more of those concerns. Turbodyne
emphasizes that all of the discussions are in the early stages, and there is
no assurance that any of the discussions will result in the consummation of a
transaction.
    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. Turbodyne's light metals division is
a manufacturer of machined aluminum castings and a leading supplier to the
automotive industry, providing $39 million in revenues in 1997.
    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''
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    Edward M. Halimi
    Chairman

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