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
