TURBODYNE ANNOUNCES MAJOR MANAGEMENT CHANGES
                  --------------------------------------------



Carpinteria,  California  - July 16, 2001 - Turbodyne Technologies, Inc. [O.T.C:
TRBD]  announced that its eleven-member Board of Directors has resigned in favor
of  a  new  three-man Board consisting of German investors Dieter Neujeffski and
Lars  Neujeffski, and their associate, Albert Wierz. The retiring Board took its
action  in  the  belief  that the new team would be better able to put back on a
stable  footing  the company's troubled joint-development program with Honeywell
as  well  as to meet the company's pressing financial needs. A company spokesman
stated  that  the  Board  is  selecting  a new Chief Executive Officer and Chief
Financial  Officer,  and expects to announce appointments to those offices at an
early  date.  Honeywell,  with  whom  Turbodyne  has  an agreement for the joint
development  and commercialization of Turbodyne's technology, recently commenced
arbitration proceedings to terminate the agreement, citing financial, managerial
and  operational  difficulties  on  Turbodyne's  part  over  the past 18 months.
However, Turbodyne's new management and Honeywell have established a dialogue to
resolve  Honeywell's  concerns  by agreement, and a restructuring of Turbodyne's
operations to accomplish that result, including layoffs and new hires, primarily
in the engineering sector, and other changes, is now in progress. Meanwhile, the
joint-development  program  is  continuing,  including the supplying of parts by
Turbodyne  to  Honeywell.


Turbodyne  Technologies,  Inc.,  a  California  based  high  technology company,
specializes  in  the  development of charging technology for internal combustion
engines  and  the  development  and  manufacturing  of  high-tech assemblies for
electrically  assisted  turbochargers and superchargers. Turbodyne Technologies'
headquarters  is  located in Carpinteria, California, and its European office is
located  in  Frankfurt,  Germany.


Contacts:
Trish  Remely  (805)  684-4551