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                  TURBODYNE FILES MULTIBILLION-DOLLAR ANTITRUST
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                            ACTION AGAINST HONEYWELL
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Carpinteria, California - August 15, 2001 - Turbodyne Technologies, Inc. [O.T.C:
TRBD]  announced  that  it  has  today  filed a private antitrust action against
Honeywell  International,  Inc., seeking damages of up to $9 billion. The action
bases  its  claim  for  damages  and injunctive relief on alleged suppression by
Honeywell  of  Turbodyne's  Dynacharger  and  Turbopac  technologies.

Turbodyne  and  Honeywell  entered into joint-development and license agreements
relating  to  the  Dynacharger  technology  in January 1999. The agreements were
extended  to  Turbopac  in  December  1999. In connection with both the original
agreement  and  extension, Turbodyne's complaint says Honeywell represented that
its  intention  was  to  commercialize both product lines as rapidly as possible
with  a  view  to  making  airflow-enhancement  devices  standard  equipment  on
substantially  all  internal  combustion  engines  manufactured  worldwide.

According  to the complaint, however, Honeywell did not proceed in good faith to
commercialize  either  group  of  inventions.  Rather,  it  used its position as
Program Manager of the joint development program to block such commercialization
and  to  suppress Turbodyne's technology. Honeywell's motive for doing this, the
complaint  alleges,  was  to  avoid  disruption  of  Honeywell's  existing
multibillion-dollar  turbocharger  business.

The  Turbopac  technology  regulates  airflow  in  automobile,  truck  and other
internal-combustion  engines  in order to increase fuel efficiency and power and
to  eliminate  pollution.  Dynacharger boosts airflow in turbocharged engines to
eliminate  the  phenomenon  known as "turbo lag." That phenomenon, which creates
both  efficiency  and  safety  problems,  results from the fact that the exhaust
gases  used  in  turbochargers  are  least  available  during  acceleration from
start-up  when  they  are  most  needed.

According to Turbodyne's complaint, Honeywell is the world's leading supplier of
air-enhancement  devices  for use in internal combustion engines, supplying some
60%  of  the  world market. Approximately 60 million engines for automobiles and
trucks  are  produced  annually,  of  which  approximately  10  million  utilize
turbochargers. Turbodyne alleges that Honeywell's suppression of its technology,
which  cost  its  stockholders  $100  million to develop, damaged the company by
depriving  it of income and prospective income that would have given the company
a  market  value  of  up  to $3 billion. Under the Clayton Act, which authorizes
private  antitrust  damage  suits,  actual  damages  are  trebled.


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Honeywell  initiated  arbitration  proceedings  against  Turbodyne  in July 2001
seeking  termination of the joint development agreement and unspecified damages.
Turbodyne's  complaint  in  federal  court  alleges that the dispute between the
parties is not arbitrable and that the filing of the arbitration was in itself a
further  attempt  to restrain trade and to monopolize in violation of sections 1
and  2  of  the  Sherman  Antitrust  Act. Turbodyne contends that the agreements
between  the  parties  were invalid at the outset, so that Honeywell's rights in
the  Turbodyne  technology  should  be  terminated  and  exclusive rights in the
technology  returned  to  Turbodyne.


The  headquarters  of  Turbodyne  Technologies,  Inc. is located in Carpinteria,
California  and  its  European  office  is  located  in  Frankfurt,  Germany.


Contacts:
Dan  Black  (805)  684-4551