21 May 1997

Los Angeles, CA—Turbodyne Technologies Inc. announced today that in tests conducted at the Southwest Research Institute the company's Turbopac™, in conjunction with a patented catalytic muffler system, has successfully met the EPA's 0.1 g/bhp-hr particulate matter emissions standard. Turbodyne is now applying for certification of the Turbopac™ system under the EPA's Urban Bus Retrofit/Rebuild Program (UBRR).

The Urban Bus Retrofit/Rebuild Program is intended to reduce the ambient levels of PM, a contributor to air pollution, in approximately 40 urban areas. A key aspect of the program is the certification of retrofit/rebuild equipment that meets the 0.1 gram PM standard. To meet compliance options, operators of affected buses must use equipment that has been certified by the EPA.

The Turbopac™ system is capable of reducing specific diesel engine emissions by permitting improved combustion without a power-loss penalty, an important factor in both bus and heavy- duty trucking applications. The SwRI tests also confirm the capability of Turbodyne's system for emerging markets where governments are increasingly concerned about diesel engine emissions.

The United Nation's Development Program recently recognized the Turbopac™ under its Flag Technology Program as having "wide-reaching implications for the advancement of air quality standards for vehicles and the health of people throughout the world." Technologies that bear UN Flag status receive assistance from the UN Global Technology Group, which acts as an agent in bringing the technologies to those countries that would benefit most from such innovation.

Turbodyne is an integrated manufacturing company specializing in the design, manufacture and marketing of high technology performance improvement and anti-pollution devices for automotive, marine and industrial applications. Turbodyne's offices and plants are located in Carpinteria, Calif., La Mirada, Calif.; Encinitas, Calif.; Ensenada, Mexico; North Hampton, England; Monchengladbach, Germany; and Vancouver, British Columbia.