AGM Statement

RNS Number:8612M
Turbo Genset Inc.
27 June 2003



26 June 2003


                                  Turbo Genset
                                        
                                        
                             Annual General Meeting



Turbo Genset Inc held its AGM yesterday in Toronto, Canada. During the course of
the meeting, Colin Besant, Chairman, made the following points regarding trading
in the first half of 2003 and future prospects:


The Company continues to make important progress with the commercial development
of its innovative high speed electrical generation equipment and power
electronics. However, against a background of a mixed world economy, and in
general, lower electricity prices across the globe, trading conditions have been
quite challenging.


The Chairman highlighted that there was an increasing attractiveness of
electricity supply from Distributed Generation systems as compared with large
scale centralised generation and transmission, particularly where there is a
demand for usage of the associated heat by-product.


The Company has made the first shipments of 400kw permanent-magnet high-speed
generators to DTE Energy Technologies under the contract for 50 units which was
confirmed during 2002, and is optimistic about achieving further sales and has
redoubled its marketing efforts particularly in the developing world in order to
achieve additional sales in 2003.


Development of the 1.2MW generator unit continues and Turbo Genset is confident
that it will be able to produce a prototype unit meeting very attractive
performance criteria by mid-2004. The Company is looking at a number of possible
engine options to enable the production of power generation units with the
optimum combination of performance and cost.


Deliveries of the prototype 200kW generator to General Electric for
incorporation into the Advanced Integrated Microturbine System (the US
Department of Energy sponsored AIMS programme) is scheduled to occur this summer
and discussions continue about the commercial potential of the system in 2005
and beyond. In addition, the Company recently delivered the first Hybrid
Electric Turbo Charger unit to General Electric.


Exciting progress was made on the Power Electronics front where Turbo Genset
achieved two major orders for power supply systems to PRC Lasers in the USA and
to a company which has developed a revolutionary method for sterilising fluid
streams using high intensity pulsed Ultra Violet radiation.


Other important developments in Power Electronics were in relation to the
Variable Speed Generators and in the area of power supplies for in-car use in
railway trains. TG's unique power electronics capability has enabled the
realisation of the Variable Speed Generator concept which enables conventional
reciprocating engine-based generators to produce power of the highest possible
quality while at the same time achieving major fuel savings.


These units are highly mobile and can deliver more power in a limited space. In
November the Company signed a memorandum of understanding with Gastar
Exploration Limited, Canadian company, to exploit the market for electricity
generated from coal bed methane.


Turbo Genset presently has approximately #16million (C$35 million) of power
electronic railway equipment out on quotation and this business offers the
potential for a stable and growing baseload for the Power Electronics business.
Overall the current order book stands at #3.5 million (C$8 million).


By the end of 2002 the Company had completed the major part of its capital
investment programme. Steps have been taken to control tightly working capital
and with the onset of commercial sales of the 400kW generator and the expanding
power electronics business, the rate of cash usage will reduce substantially.



At the Annual General Meeting all resolutions were passed.






                      This information is provided by RNS
            The company news service from the London Stock Exchange

END
AGMFRMPTMMTTMPJ