Turbodyne Reports on Progress in Export Markets
17 August 1998
Turbodyne's Chairman Reports on Progress in Export Markets & Comments On Recent Stock Price Decline
WOODLAND HILLS, Calif., Aug. 17 -- Mr. Edward Halimi,
Chairman of the Board of Turbodyne Technologies Inc. (Nasdaq: TRBD; Easdaq)
returned to company headquarters Friday evening from 10 days of negotiations
in London and Moscow. Accompanying Mr. Halimi were Dr. Joseph Ben-Dak of the
United Nations Development Program and Dr. S. Durairaj, a Turbodyne director.
"We met with officials of the European Bank for Reconstruction and
Development in London, and with government officials in Moscow," said Halimi.
"We also met with representatives of the NAMI Institute in Moscow (the
equivalent of the U.S. EPA), and concerned leaders in finance and business who
have recognized the Turbodyne Technologies system as the only technology that
contributes to the reduction of global warming caused by inefficient burning
of fuel by internal combustion engines worldwide."
"The whole world is very concerned with a need for clean air and a
reduction in the greenhouse effect," continued Halimi. "There is a great deal
of enthusiasm for Turbodyne's technology, which reduces pollution while
improving fuel economy and performance with the bonus of improving engine
starts in cold climates."
After two years of product testing in the Russian Federation, culminating
in a purchase order from the Trans Business Group and the establishment of
technical and logistical support for installations and after-sale service of
the products, Turbodyne's objective now is to capitalize on a market with over
300,000 heavy-duty vehicles, representing more than $1 billion in potential
sales to the company.
"To expedite Turbodyne's sales, we have established the Turbodyne Credit
Corporation as a fully-owned subsidiary of Turbodyne Technologies Inc.," said
Halimi. It will provide product financing guaranteed by world organizations
for expanded sales to the Russian Federation, as well as to other export
markets. Additionally, retail sales in the United States and Europe will be
facilitated by the availability of consumer credit through Turbodyne Credit
Corporation."
Under supervision of the Federal Department of the Environment in Mexico,
it was announced this past week that Turbodyne's technology has met the latest
clean air standards in Mexico City for heavy-duty vehicles, paving the way for
initiation of sales in Mexico.
Turbodyne's ability to improve engine performance in Mexico City's high
elevation and thin air environment, the largest contributing factor to its
high levels of pollution, has positioned Turbodyne as the only anti-pollution
product which can be tolerated by transport vehicles fleets.
There are more than 250,000 heavy-duty vehicles subject to environmental
regulations in Mexico, representing a potential market of more than
$1.2 billion, which Turbodyne is poised to access through its wholly-owned
subsidiary, Turbodyne Mexico SA de CV.
We were overwhelmed by our European meetings and travel schedule, and I
regret not having personally addressed the issues of a recent attack on the
stock of our company by professional short sellers who thrive on the
destruction of good companies," stated Halimi. "I would like to say to all
the investors in Turbodyne, our Board of Directors joins me in assuring you
that our company, our technology and our sales prospects have never been
better. The underlying value of our shares continues as before, and your
participation in our 'green' company, dedicated to improving the air we
breathe, will be rewarded as promised.
"We plan to issue a more comprehensive report in the coming days," said
Halimi. "We will outline our plans to address the source of misinformation
and lies that has caused the temporary decline in our share price. The good
news is that we believe these libelous and loathsome tactics have brought our
important breakthrough technology to the attention of the world press.
"The future promises more attention from environmental entities as well as
from all the fleet operators, private, municipal, government and military,
that are concerned with reduced fuel costs, increased power and cleaner air,"
continued Halimi. "As the air clears and the truth rises to the surface, once
again, the investment community will again propel forward our company, our
science and our valuation."
Turbodyne Systems, the Engine Technology Division of Turbodyne, develops,
manufactures, designs, markets and develops patented pollution-reduction, fuel
economy and performance enhancing products 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.
Offices and plants are located in Carpinteria, La Mirada, Encinitas and
Woodland Hills, Calif.; Ensenada and Mexico City, Mexico; Northants, England;
Frankfurt, Germany; Vancouver, Canada; and Paris, France.
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 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.