17 October 1997

Turbodyne Technologies Inc. announced initial installation of its Turbopac™ 2500 units on city buses in Toledo, Ohio; Riverside, California and Milwaukee, Wisconsin with an installation scheduled shortly in Washington, DC.

These installations are pursuant to the Environmental Protection Agency Urban Bus Rebuilt/Retrofit Program, which regulates the emissions of city buses in all of the metropolitan areas of the United States. The Turbopacs™ were installed by a specially trained staff of Detroit Diesel distributors in the various metropolitan areas, in conjunction with Turbodyne engineers.

Milwaukee Transit has requested and received special approval from the EPA to equip ten additional buses with the Turbopac™ 2500 units, for which Turbodyne has received a purchase order. The final EPA certification process of the joint Detroit Diesel Corporation - Turbodyne kits is expected upon completion of a 45-day comment period.

Turbopac™ model 2500 products have also been installed on four city buses in Moscow, Russia under a pilot program. Installations are also scheduled for Canada, several European and South American countries and other pilot programs are underway with the cooperation of the United Nations Technology Group.