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[TURBODYNE LOGO]
TURBODYNE UPDATES LEGAL MATTERS
CARPINTERIA, CALIFORNIA - AUGUST 18, 2000 - Turbodyne Technologies, Inc.
(EASDAQ:TRBD) announces developments in several legal matters that are currently
pending.
TST vs. Turbodyne
As previously reported on February 18, 2000, one materials vendor from Pacific
Baja bankruptcy has filed a suit against Turbodyne and several other defendants
as guarantors of the debt. TST, Inc. filed suit on March 13, 2000 for
approximately $1.5 million plus interest, costs and attorneys' fees. The suit is
in the discovery phase.
Heartland Financial v. Turbodyne
On May 8, 2000, Heartland Financial, a service provider whose claim was heard in
the Pacific Baja bankruptcy, filed for arbitration against Turbodyne for
approximately $465,000 plus interest, costs and attorney's fees. This matter was
previously heard and ruled upon by the bankruptcy court in the Pacific Baja
bankruptcy proceedings. The Company's position is that the bankruptcy court's
decision is final and that the matter has already been adjudicated. Heartland
maintains that it has the right to sue Turbodyne outside of the bankruptcy
proceedings. The matter has been assigned to Fresno for arbitration to determine
the jurisdictional issues and the parties are still in the process of choosing
an arbitrator.
Jamison v. Turbodyne
On January 21, 2000, Jamison Capital, a service provider for Pacific Baja, filed
a complaint against Turbodyne demanding payment of $115,000, plus interest and
costs, in New Jersey State Court. The matter was later removed to federal court.
On August 15, 2000 Turbodyne was awarded summary judgment against Jamison
Capital. The Court awarded Jamison a "break-up" fee of $21,000. Turbodyne has
already paid $10,000 of the $21,000 total judgment. Jamison Capital has 30 days
from August 15, 2000, in which to file an appeal.
Willett v. Turbodyne
On June 21, 2000, the Company was served with a demand for arbitration by David
Willett, a former employee. The Company did not oppose the demand. Mr. Willett
is seeking approximately $45,000 plus 200,000 stock options plus consequential
damages allegedly suffered. The parties are in the process of choosing an
arbitrator. The matter is expected to go to arbitration on or before February
13, 2001.
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Turbodyne Page 2 - Update Legal Matters
Turbodyne Technologies, Inc., a California based high technology company,
specializes in the development of charging technology for internal combustion
engines plus the development and manufacturing of high-tech assemblies for
electrically assisted turbochargers and superchargers. Turbodyne Technologies,
Inc.'s headquarters is located in Carpinteria, CA; the European business
location is Frankfurt, Germany. Additional information about the company is
available on the Internet at http://www.turbodyne.com.
Contacts:
Kenneth Fitzpatrick, VP Group Finance - Investor Relations: (800) 566-1130
Markus Kumbrink, Turbodyne Europe Investor Relations: +49-69-69-76-73-13
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Except for the historical information contained in this news release,
the matters discussed herein include forward-looking statements that involve
risks and uncertainties.
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