August 14, 2000
TURBODYNE REPORTS FINANCIAL RESULTS FOR THE QUARTERLY PERIOD
ENDED JUNE 30, 2000
Carpinteria, California—August 14, 2000 —Turbodyne Technologies Inc. (EASDAQ:TRBD) today reported financial results
for the half year and quarterly periods ended June 30, 2000. In December 1999, the Company sold substantially all of the assets
of Pacific Baja pursuant to an order of the U.S. Bankruptcy Court. Pacific Baja accounted for substantially all of the Company’s
sales on a consolidated basis for the twelve months ended December 31, 1999. Accordingly, the comparative analysis of
Turbodyne Technologies Inc.’s results of operations for the three months and six months periods ended June 30, 2000 and 1999
are reported without and with Pacific Baja’s results of operations for comparative periods in 1999.
Comparative Analysis without Pacific Baja
Net sales for the six months ended June 30, 2000 increased to $449,000 compared to $429,000 for the same period in 1999, an
increase of $20,000 or 4.66%. Net sales for the three months ended June 30, 2000 decreased to $181,000 from $325,000 for the
same period in 1999, a decrease of $144,000 or 44.31%. This decrease is attributed to the transfer of sales and marketing to
Garrett® Engine Boosting Systems, a division of Honeywell International Inc., pursuant to the joint agreements.
Gross profit for the six months ended June 30, 2000 increased to $78,000, or 17.37% of sales, from $76,000, or 17.72% of sales, for
the same period in 1999, an increase of $2,000, or 2.63%, and from 7.54% for the full year 1999, an increase of 9.83%. Gross profit
for the three months ended June 30, 2000 increased to $64,000 from $55,000 for the same period in 1999, an increase of $9,000 or
16.36%. This increase in gross profit is attributed to the change in cost of goods sold.
Selling, general and administrative expenses for the six months ended June 30, 2000 decreased to $2,016,000 from $2,690,000 for