Turbo Genset Inc.

Turbo Genset Inc.

March 03, 2005 02:00 ET

Turbo Genset Secures GBP 7,134,000 Financing


NEWS RELEASE TRANSMITTED BY CCNMatthews

FOR: TURBO GENSET INC.

TSX, LSE SYMBOL: TGN

MARCH 3, 2005 - 02:00 ET

Turbo Genset Secures GBP 7,134,000 Financing

CALGARY, ALBERTA--(CCNMatthews - March 3, 2005) - Turbo Genset Inc.
(TSX:TGN) (LSE:TGN) (the "Company") is pleased to announce that it has
received commitments for an aggregate financing of Pounds Sterling
7,134,000 (C$17,024,150) comprised of Convertible Notes and Warrants.
The Convertible Notes have a term of five years plus one day, bearing
interest at an annual rate of 6.5% and are convertible into an aggregate
of 59,450,000 Common Shares of the Company at a conversion price of
Pounds Sterling 0.12 (C$0.28) per share. The Warrants have a term of
five years and are convertible into an aggregate of 6,242,250 Common
Shares of the Company at an exercise price of Pounds Sterling 0.15
(C$0.35) per share. The majority of the financing has been provided by
institutions and other arms length investors. John Gunn, a director of
the Company, has subscribed for Pounds Sterling 100,000 of the
financing. The financing is subject to applicable regulatory approval
and is scheduled to close by Wednesday 9th March 2005.

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.

The Company is now expected to announce its preliminary results by the
end of March.

Michael Hunt, CEO commented "I am delighted that we have been able to
secure the funding required for Turbo Genset's continuing expansion into
our chosen markets."

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.


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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
    (905) 690-1722
    Website: www.turbogenset.com
    or
    Gavin Anderson & Company (PR)
    Ken Cronin
    +44 (0)20 7554 1400
    Email: kcronin@gavenanderson.co.uk
    or
    Seton Services Inc (IR)
    Toni Vallen
    +44 (0)20 7373 3536
    Email: toni@setonservices.com