August 18, 2000
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