RNS Number:7290I
Turbo Genset Inc.
14 March 2003





                                                          Friday 14th March 2003



                                 Press Release

                   TURBO GENSET INC ANNOUNCES ITS RESULTS FOR
               THE QUARTER ENDED DECEMBER 31, AND THE YEAR, 2002.

Turbo Genset Inc. ("Turbo Genset"), the innovative power generation and power
conditioning equipment provider, is pleased to announce its results for the
three month period ended 31 December 2002 and for the year 2002.

Highlights:

  * Total revenue of #1.3 million, including sales of prototypes and
    pre-commercial units of #0.6 million
  * Order book of #3.5 million
  * Rail Power Electronics business interests taken over from Rolls Royce
  * Restructuring programme completed with 20% headcount reduction
  * Final quarter cash outflow reduced to #0.6 million, resulting in full year
    cash outflow of #8.6 million
  * Cash reserves of #13 million at year-end.  Net cash of #12.9 million

Commenting on the results, Colin Besant, Chairman, said:

"This has been a momentous year during which we have overcome a number of
significant difficulties and now stand on the brink of transforming our ground
breaking technology into commercial reality.  Following the strategic review,
Turbo Genset is focused on providing a range of high technology products in
three key areas."

CHAIRMAN'S STATEMENT

The Company is clearly focused on three key areas;

*         Turbine based systems above 175kW output

The Company makes permanent magnet high speed generators which can be directly
coupled to turbine engines, forming highly efficient and low maintenance
systems.  These produce extremely low emissions and high grade heat suitable for
use in heating or chilling applications.

*         Variable Speed Generator systems below 175kW output

For power requirements below 175kW, Turbo Genset believes that by using
permanent magnet generators and Turbo Genset's Power Electronics with piston
engines it will be possible to achieve substantial capital and operating cost
savings over generating systems using conventional technology.

*         Power electronics - high voltage, mobile and power generation
inverters

Power electronics products take a range of power inputs and condition them to
achieve outputs of precisely defined characteristics for applications such as
industrial lasers, Ultra Violet sterilisation systems, and railway power
electronics systems.

Turbine based systems

400kW Generator System

The start of the year was difficult for the Company following suspension of the
Pratt & Whitney Canada ST5 gas turbine development.  A replacement turbine, from
Walter a.s. of the Czech Republic has been secured and Turbo Genset's staff have
worked hard to recover time lost on the 400kW programme.   Turbo Genset has an
order for 50 generator systems.  Deliveries to DTE Energy Technologies of pre
commercial units have commenced and commercial deliveries are due to begin next
month.

The Company is now working to establish other opportunities for the system in
combined heat and power, and cooling markets, particularly in developing
countries.

1.2MW Generator System

The Company is excited about the potential for products in the 1.2MW power
range.  The development of this product is on track and product launch is
scheduled for the first half of 2004.  The Company is in advanced negotiations
with a potential engine partner for this system and has opened discussions with
prospective launch customers.

Other Generator systems

Development of the 200kW high speed generator for GE Global Research's "Advanced
Integrated Microturbine System" ("AIMS") is on schedule.  This project, which is
funded by the US Department of Energy, will provide high efficiency generation
systems for use in Distributed Generation applications, starting in
approximately 2 years.

The Hybrid Electric Turbocharger programme, also with GE Global Research, uses
key parts of the 400kW generator to improve the environmental performance and
efficiency of large railway diesel engines.  Delivery of a full scale prototype
to GE will take place in the next few weeks.  Commercial launch is also targeted
for 2005.

Our unit at BP's Kimmeridge site, was commissioned during the fourth quarter and
has passed its acceptance test.  The unit has the potential to supply power
sufficient for approximately 30 houses, using vent gas.

Variable Speed Generator Systems

The first two Variable Speed Generator systems ("VSG") have now been completed
and are under test.  Both are rated at 80kW power output; one is diesel fuelled
and the other gas fuelled.  The Company believes that the systems will have
major applications in developing countries where reliable and high quality power
is required and is currently unavailable.  The VSG is ideally suited for mobile
applications, where it can provide more power in a limited space envelope.

A particular opportunity being pursued is the sale of VSG units to Turbostar,
which is the planned joint venture between Turbo Genset and Gastar of Canada.
In November 2002, the two companies signed an MOU to exploit the market for
electricity generated from coal bed methane ("CBM") and coal mine methane ("CMM
").

Power Electronics

The Company now has an order book of over #1.3 million for its power electronics
products.

Rail applications

Following the integration of the Rolls Royce power electronics contracts, the
company has achieved orders of over #300,000 and has outstanding quotations for
over #15 million of new business.  This includes applications, which involve
taking the power supplied to the train and converting it into outputs suitable
for air conditioning, catering and Personal Computer usage.

High voltage

The Company today announced an order of approximately US$750,000 from PRC Laser
of New Jersey, for the supply of high voltage power supplies for use with their
industrial lasers.  PRC is the largest US manufacturer of high power industrial
CO2 lasers, which are used in the volume metal processing sectors and automotive
industries.

The Company has received an initial order of approximately US$600,000 for power
supplies to be used in UV air and water sterlisation systems.  Evaluation of
these UV systems is underway by a number of potential users.

Distributed Generation and The UK Energy Review

The Company supports the concepts of maintaining energy reliability through
energy diversity as outlined in the UK Energy Review White Paper and the
creation of a centre of excellence in distributed generation.

The benefits of distributed power generation are well understood, in particular
the delivery of power at equivalent or lower costs compared to existing utility
generation transmission with higher reliability.

The Company believes that distributed generation using Turbo Genset technology
offers a solution to revolutionise power generation not only in the UK but
worldwide, in particular developing countries.



Goals for 2003

The Company's key targets for 2003, include;

*       Developing additional sales for the 400kW generator system
*       Achieving final agreement with an engine partner for the 1.2MW system
*       Delivering the first AIMS generator to General Electric
*       Achieving first sales of Variable Speed Generators
*       Proceeding with the TurboStar joint venture
*       Substantial expansion of the rail Power Electronics business
*       Generating follow-on Power Electronics orders for laser and UV
        sterilisation applications


Colin Besant
Chairman
14 March 2003



For further information, please contact:

Turbo Genset Inc


UK                                                 Tel: +44 (0)20 8564 4460
Peter Hollins, Chief Executive Officer
Fraser Searle, Chief Financial Officer

Canada
Richard Kapuscinski, Business Development          Tel: +1 (905) 690 1722

Website:                                           www.turbogenset.com

Gavin Anderson (PR)                                Tel: +44 (0)20 7554 1400
Neil Bennett
Ken Cronin

Seton Services (IR)
Toni Vallen                                        Tel:    +44 (0)20 7373 3536
                                                   Email: toni@setonservices.com





NOTES TO EDITORS

About Turbo Genset

Turbo Genset develops innovative products for power generation and power
conditioning. The Group was established in 1993 as a spin-off from Imperial
College, London and was floated on the London stock exchange in July 2000 and
soon after obtained a secondary listing in Toronto.

In July 2001, the Group acquired Intelligent Power Systems Limited (IPower)
specialising in power electronics.

About Power Electronics

Power electronics products take a range of power inputs and condition them to
achieve outputs of precisely defined characteristics for applications such as
industrial lasers, Ultra Violet sterilization systems and railway power
electronics systems.




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