Turbo Genset Inc.

Turbo Genset Inc.

March 14, 2005 02:00 ET

Turbo Genset Secures Further Financing


NEWS RELEASE TRANSMITTED BY CCNMatthews

FOR: TURBO GENSET INC.

LSE, TSX SYMBOL: TGN

MARCH 14, 2005 - 02:00 ET

Turbo Genset Secures Further Financing

CALGARY, ALBERTA--(CCNMatthews - March 14, 2005) - Turbo Genset Inc.
(TSX:TGN) (LSE:TGN) (TGI) is pleased to announce that following the
Pounds Sterling 7.1 million financing announced on March 3rd 2005, an
additional Pounds Sterling 0.9 million has been raised, bringing the
total financing to an aggregate position of Pounds Sterling 8.0 million.

This financing has now received regulatory approval and was closed on
11th March.

The financing is comprised of Convertible Notes and Warrants. Pounds
Sterling 8 million Convertible Notes have been issued with a term of
five years plus one day, bearing interest at an annual rate of 6.5% and
are convertible into Common Shares of TGI at a conversion price of
Pounds Sterling 0.12 per share. 7,000,000 Warrants have been issued with
a term of five years and an exercise price of Pounds Sterling 0.15 per
share. The aggregate number of common shares of TGI issuable upon
conversion of all Convertible Notes and Warrants issued pursuant to this
financing is 73,666,667.

The financing has been raised from institutional and other arms length
investors. Directors of the Company, who had intended on subscribing, as
originally announced, have not done so in order to facilitate
institutional demand.

The net proceeds of the financing will provide working capital for the
development and commercialisation of the Company's power generation
products and to support order growth in its high-speed electrical
machines and power electronics businesses.

NOTES TO EDITORS

About Turbo Genset

Turbo Genset (LSE/TSX: TGN) 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.

Forward Looking statements

This news release contains forward-looking statements. Forward-looking
statements include statements concerning plans, objectives, goals,
strategies, future events, or performance, and underlying assumptions
and other statements that are other than statement of historical fact.
These statements are subject to uncertainties and risks including, but
not limited to, the ability to meet ongoing capital needs, product and
service demand and acceptance, changes in technology, economic
conditions, the impact of competition, the need to protect proprietary
rights to technology, government regulation, and other risks defined in
this document and in statements filed from time to time with the
applicable securities regulatory authorities.

-30-

Contact Information

  • FOR FURTHER INFORMATION PLEASE CONTACT:
    Turbo Genset Inc. - United Kingdom
    Michael Hunt
    Chief Executive Officer
    +44 (0) 20 8564 4460
    or
    Turbo Genset Inc. - Canada
    Richard Kapuscinski
    +1 905 690 1722
    Website: www.turbogenset.com
    or
    Gavin Anderson & Company (PR)
    Ken Cronin
    +44 (0) 20 7554 1400
    or
    Gavin Anderson & Company (PR)
    Michael Turner
    +44 (0) 20 7554 1400
    or
    Seton Services Inc (IR)
    Toni Vallen
    +44 (0) 20 7373 3536