Turbodyne Provides Update And Comments On Stock Price

Turbodyne Technologies Inc.
August 19, 2008, Ventura, California

Message from Turbodyne Co-CEO John Adams

Turbodyne is continuing to make progress.

Based on information and belief, the selling pressure in our stock is attributable to a certain U. S. shareholder who has been liquidating his position. There are no fundamental reasons that we know of for the recent stock price decline.

Our products have shown the ability to improve miles per gallon as well reducing particulate matter in the exhaust. Turbo lag is also minimized. So acceleration is improved.

We have recruited additional engineering talent to ramp up production.  The group is working diligently to keep up with project schedules. Some contingency time is built into the schedules. We gained time initially and now have completed three products and are on schedule to have them tested. The most important of these will be targeted at various sizes of diesel engines for light and heavy trucks, buses and off road equipment. We expect our test results to be very positive.

We have been identifying and marketing to customers for these products. Letters of intent have been signed. The work with ATS is on track and moving forward as planned.

Much improved reliability has been engineered into our new products, and we are working with parts suppliers to be able to supply parts for additional sales in Q4.  Additional facilities have been leased which is expected to be adequate to start assembly to satisfy the initial demand.

This is an exciting time for Turbodyne.  Given that our technical expectations are met, I believe that we will be selling product in Q3 of this year. We are hoping for substantial sales volume in 2009 and we believe the market potential beyond that is considerable.
I will keep you up to date as we move forward.
 
John Adams