Today's Investor(R) Profiles Turbodyne Technologies Inc.
3 November 1997
Today's Investor(R) Profiles Turbodyne Technologies Inc.NEW YORK, Nov. 3 -- Today's Investor (R) Magazine featured Turbodyne Technologies Inc. in its October 15, 1997 issue. The following is a facsimile of that article reformatted for this medium. The Society of Automotive Engineers said... "The Turbodyne System is the only preventative environmental product for the automotive and trucking industry. This unique product reduces air pollution by preventing it through enhanced combustion, thus achieving peak performance while creating less pollution to start with. All other anti- pollution devices, such as the catalytic converter, work in a clean-up mode after pollution has already been formed. The Turbodyne System is a patented add-on device for the turbocharged gas and diesel engine and has been introduced into the heavy-duty truck market to increase turbocharger performance, improve combustion, and reduce smoke emissions as required by the federal clean air standards. The 1994 changes to both the federal and California state standards are focused on the reduction of black smoke emissions from diesel engines, referred to as particulate matter ..." Turbodyne Technologies Inc. a developer and manufacturer of high technology anti-pollution and performance improvement devices for automotive, marine, and industrial applications, is a company very much on the move. The Company has offices and plants in the United States, Mexico, the United Kingdom and Canada and is serving a growing list of companies in these countries and Europe who are interested in both its products and technology because they address worldwide concerns about pollution. United Nations - Special Recognition This past April, Turbodyne was one of 28 companies out of 7,200 applicants and the only one in the automotive class to be granted the right to carry UN Flag status on their products by the Global Technology Group (GTG), a United Nations (UN) Development Program, formed to identify technologies which could help developing countries create employment, improve health conditions or enhance the environment. Besides the prestige of the award, qualifying companies also receive publicity and marketing through CTC and other international organizations who are assisting developing countries to license relevant technologies and create programs for their own needs. Where necessary, financial assistance is possible through the World Bank. To date, Turbodyne has already received inquiries from approximately 57 developing countries and is dealing on licenses in Malaysia, Mexico, India, China, Chile and Brazil. TRBD has contracts, joint development agreements or evaluation programs with most industry leaders, including: 3KTurbo, Caterpillar, Cummins, Detroit Diesel, MAN, Volvo, Mercedes, Navistar, Perkins, Saab, Volkswagen, Southwest Research Institute. Turbodyne is also establishing partnerships with engine manufacturers & governmental groups worldwide, including: United States, Canada, China, India, Brazil, Malaysia, Chile, Korea, Mexico, Japan, England, Russian Republic, Germany and the Ukraine. TRBD has thirty patents issued & pending and has targeted such industries as Automotive/Bus/Truck; Agricultural; Military; Recreational; Construction Industrial and Marine. Turbodyne products have key advantages that no other competitive product can match: ENHANCED ENGINE PERFORMANCE -- Increased air flow results in increased torque and power (30%-40%) -- Improved driveability and acceleration EMISSION REDUCTIONS -- Reduces pollution by preventing it in the first place through enhanced combustion -- All pollutants (hydrocarbons, carbon monoxide, oxides of nitrogen, particulate matter) reduced with no trade-offs -- United States Environmental Protection Agency certified FUEL ECONOMY -- Enhanced burn creates a more efficient use of fuel -- 3%-7% fuel savings As Edward Halimi, Chairman of Turbodyne Systems Inc. said, "We sought to develop an affordable and fuel efficient device that also results in reducing emissions to the levels that will take us into the twenty-first century with cleaner air and healthier citizens." "During acceleration and stop-and-go traffic, engines have an excessive fuel supply and not enough air. This excessive fuel results in pollution and disproportionate fuel consumption," said Leon Nowek, Turbodyne's CFO. "Turbodyne's breakthrough products minimize this inefficiency by increasing air flow to the engine at the time of combustion which results in a more efficient fuel consumption." The Market The market for Turbodyne products is significant and expanding because petroleum products are major contributors to both air pollution and the global economy -- and will be -- as long as all major industries such as automotive, transportation, agricultural, construction, recreational and marine, depend upon diesel and gasoline engines as their primary modes of transportation. Worldwide production of diesel engines alone has increased 55% over a ten year period from 11 million units in 1986 to 17 million units in 1996. Estimated worldwide production of all new vehicles is over 50 million annually. The aftermarket sector has more than one billion vehicles. Turbodyne believes that, while both new and aftermarket vehicles are subject to increasingly strict fuel economy and environmental regulations, there is and will be a vast market for Turbodyne products as the number of older vehicles increase and cities and regions around the world continue to develop pollution control programs. Turbodyne's Turbopac(TM) recently completed the U.S. EPA's particulate matter emissions test, qualifying it as "the first air-enhancement system to meet the agency's standards ... in 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." Strategy The aftermarket sector is an extremely import market for Turbodyne, especially in the case of trucking fleets and transit districts, where immediate compliance with clean air regulations is mandatory. In the U.S. alone, the urban bus market consists of more than 110,000 vehicles in various metropolitan areas that are effected under a new EPA program, transit agencies will be required in the near future to install on a retrofit kit designed to meet strict particulate matter standards at a cost of approximately $7,940 on each bus or face compliance penalties of $25,000 for each infraction. Turbodyne and Detroit Diesel are already introducing its bus retrofit kit to the transit bus market. Shipments are scheduled to begin in the third quarter of 1997. Turbodyne is also working with the majority of leading automotive engine and heavy-duty vehicle manufacturers both in the U.S. and internationally to develop OEM installations that meet present and future mandated clean air legislation and performance requirements. Turbodyne is also working with non-traditional non-automotive industries interested in incorporating Turbodyne's technology into applications such as heaters, furnaces and generators. Turbodyne has positioned itself to capitalize on serious environmental concerns in a very large international market. The company has also available numerous and substantial grants to fulfill manufacturing in Europe. It has an active research and development program and hopes to continue to introduce new, breakthrough technologies designed to improve engine efficiency while eliminating pollutants. Turbodyne is currently pursuing and has entered into a series of worldwide strategic alliances, joint ventures or partnerships with automotive manufacturers, government agencies and environmental organizations to fully develop and market its cutting-edge technology and maintain leadership in the anti-pollution industry. (See Side Bar) Turbodyne already has a joint venture in place with Kuhnie, Kopp & Kausche AG (3), Germany's largest manufacturer of turbochargers to develop a new line of Turbochargers incorporating its technology for 3K customers. What is interesting about this joint venture is that it was recommended by Volkswagen AG, another venture partner of Turbodyne, and a major purchaser of 3K turbochargers. Turbodyne also has a contract with a major European manufacturer in the field of furnaces, heat pumps, and energy exchangers to supply a minimum of 200,000 units annually of its Turbopac(TM) high-speed module for incorporation into their line of heating systems. Financials During 1997, Turbodyne has been rated a "Speculative Buy" by Yorkton Securities, Inc. in Canada; a "Buy" by Fulcrum Securities, LLC in California and a "Speculative Buy" by the Investment Bank of Bank Austria-Group, in Europe who issued the most recent report. To quote just one of them, the Investment Bank of Bank Austria-Group, wrote of Turbodyne Technologies Inc. that, it was "Providing a completely new approach to eliminating turbo lag while reducing emissions and fuel consumption. Turbodyne's technology could be a revolutionary invention for the automotive industry. Should the projected orders from OEMs materialize, Turbodyne is set for substantial value growth. However, much of the potential is still based on assumptions rather than hard facts..." The Future Turbodyne Technologies Inc. does not need any financing at this time. It just completed a private 3 year convertible preferred share financing of $10 million arranged by GEM Advisors Inc., a member of the London-based Global Emerging Markets Group. Turbodyne has the management, the locations, products, partnerships, clients and joint ventures in place to succeed. Considering all of the above, it should not be that long until Turbodyne Technologies Inc.'s potential is proven based on facts. NOTE: The information contained in this article was published in the October issue of Today's Investor(R) Magazine and is for information purposes only and should not be construed as buy, sell or hold recommendations. Investors should be aware that officers, directors and employees of Forte Communications Inc., as well as contributors, analysts, brokerage firms and/or members of their families may have a position in the securities mentioned. Their position may change from time to time. Today's Investor(R) Magazine strongly advise that investors investigate prior to investing. SOURCE Today's Investor(R) Magazine