<PAGE>
                                TURBODYNE UPDATE
                                ----------------


          Appointment of New Directors - Licensing of New Technology -
                     Status of TurbopacTM and DynachargerTM


Carpinteria, CA - August 19, 2001 - Turbodyne Technologies, Inc. announced today
the addition of Andrew Martyn-Smith and Eugene O'Hagan to the Company's Board of
Directors.  Both  men  are  prominent  California  businessmen  and  long-time
stockholders  in  the  Company.  Since  reorganization of the Company's Board in
July,  the Company has been managed on an interim basis by a three-member Board,
all of whose members reside in Germany. The addition of Martyn-Smith and O'Hagan
is designed to strengthen the Board and provide increased representation for the
Company's  U.S.  stockholders.


                                 New Technology


Turbodyne has announced an agreement with Edward M. Halimi, founder of Turbodyne
and  inventor of its technology, for assignment of the intellectual-property and
patent  rights  for  a  new  generation of electrically-assisted air-enhancement
products  for  internal  combustion  engines.  The  new  products  incorporate
newly-developed  electric-motor  and  electronics  technology  as  well  as  a
proprietary  computer  chip.  They  will  be  marketed  by the Company under the
trademarks  TurboAirTM  and  TurboRamTM.


The  Company  said the electric motors utilized in the new products are superior
to the older technology because they have no permanent magnets. As a result, the
Company  said,  they  are  more  reliable,  efficient  and  cost-effective.
The  Company said the new technology was developed independently by Halimi after
leaving  the  Company  several  years  ago  as  a  result  of  illness.


                     Status of TurbopacTM and DynachargerTM


As  previously  announced,  Turbodyne  and  Honeywell are involved in litigation
relating in part to the joint-development and license agreements entered into by
the two companies since early 1999 with respect to Turbodyne's DynachargerTM and
TurbopacTM  technologies.  The litigation consists of a private antitrust action
brought  by  Turbodyne  and  an  arbitration  initiated  by  Honeywell.

<PAGE>

TurbopacTM  regulates  and  supplements  the  air  available  for  combustion in
internal  combustion  engines.  The  resulting  improvement  in  the  quality of
combustion,  especially  during  acceleration,  increases  power,  improves fuel
consumption  and  reduces  pollution.  DynachargerTM adds a motor and electronic
controls  to  turbochargers  to  eliminate  "turbo  lag"  resulting  from  the
unavailability  of  exhaust  gases  during acceleration from start-up. Turbo lag
creates both an efficiency problem and a safety problem resulting from the surge
of  power  that  occurs  when  the  exhaust  gases  "kick  in."


According  to  Turbodyne's trial counsel, the availability to the Company of the
technology  licensed  to  Honeywell  is  not  dependent  on  the  outcome of the
litigation.  If  Turbodyne's  action is successful, it could reacquire exclusive
rights to the technology. However, even under the terms of the agreements relied
upon by Honeywell, Turbodyne reacquired the right to use some technology on July
1,  2001  and  since  then  has  reacquired  exclusive  rights  to the trademark
DynachargerTM.  The  Company  will  reacquire  the  rest  of the technology on a
non-exclusive  basis  unless  Honeywell  obtains  supply  commitments  from
after-market and/or original-equipment manufacturers by January 1, 2002. In view
of  Honeywell's  stance  in  recent discussions between the parties, there is no
prospect  that  supply  commitments  will  be produced by Honeywell prior to the
contractual  deadline.  Thus,  although  the pending litigation could affect the
royalty obligations of the parties, it is unlikely to hamper future exploitation
by  Turbodyne  of  the  technology  it  pioneered.


In  view  of  Honeywell's  shutdown  of  the parties' joint-development program,
Turbodyne  is  pursuing  discussions initiated by F.E.V. Technologies of Aachen,
Germany  and  Detroit, Michigan with respect to commercialization of Turbodyne's
new  product  lines  and,  when  appropriate,  the  TurbopacTM and DynachargerTM
technologies.  Discussions  are  also  underway  with  a  leading electrical and
electronics  equipment  manufacturer  headquartered in Germany relating to joint
engineering  development  and  manufacturing  of  electronics


This  release  contains  forward-looking statements as defined in Section 21E of
the  Securities Exchange Act of 1934, including statements about future business
operations,  financial  performance  and market conditions. Such forward-looking
statements  involve  risks  and  uncertainties  inherent  in business forecasts.


Contact:

<PAGE>

Dan  Black  -  (805)  684-4551