RNS Number:5956Q
Turbo Genset Inc.
07 October 2003



Tuesday 7th October 2003


                 TURBO GENSET INC ANNOUNCES ENGINE PARTNERSHIP
                         FOR ITS 1.2MW GENERATOR SYSTEM

Turbo Genset Inc. ("Turbo Genset"), the innovative power generation and power
conditioning equipment provider, is pleased to announce that it has entered into
a binding Memorandum of Understanding ("MOU") with Magellan Aerospace
Corporation ("Magellan") of Ontario, Canada and Altek Power Corporation
("Altek") of British Columbia, Canada for the conversion of an industrial
standard turbine engine, which can be coupled directly to Turbo Genset's 1.2MW
high speed generator. Magellan is currently upgrading this turbine engine, under
contract to Altek, to meet industrial standards for ground based power
generation.

The MOU provides the basis for an ongoing business relationship with Magellan
and Altek for the assembly of a complete 1.2 MW Turbogenerator System, which
will be marketed, in agreed geographical regions, by Turbo Genset and Altek.
This product is targeted to be available by mid 2004.

In addition, Turbo Genset has agreed to invest C$1,000,000 (#444,400) in Altek
through the issue of a two year Convertible Debenture bearing an interest rate
of 6% per annum. The Debenture is convertible over two years into an aggregate
of 1,785,715 Units at a conversion price of $0.56 (#0.249) per Unit, with each
Unit consisting of one common share of Altek and one half of a share purchase
warrant. These warrants entitle Turbo Genset to purchase, at a price of $0.63
(#0.28) per share, up to 892,857 additional common shares in Altek for a two 
year period from the date the warrants are issued. This investment will provide
funding for the engine conversion programme and working capital.

Commenting on the MOU, Colin Besant, Chairman and Chief Executive Officer, said:

"The urgent need for a new way of supplying power to our homes and industries
has been dramatically demonstrated by the recent power outages in the US,
Canada, United Kingdom and Italy. Distributed generation provides a solution to
both the problems created in the developed economies by the ageing central power
generation infrastructure, and the growing demand for energy in the new
economies around the world.

This agreement is a milestone event in our drive towards the commercial launch
of innovative power products and sustainable revenue generation for Turbo
Genset. The partnership, which includes technical and international marketing
agreements, brings together companies with a unique combination of technical
expertise and entrepreneurial flair.

This announcement shows that Companies such as Altek, Magellan and Turbo Genset
are at the forefront of this technology and are well placed to exploit its
benefits."

Commenting on the MOU Byron Loewen, President & CEO of Altek stated:

"This agreement is a major step towards the goal of Altek establishing itself as
a leading supplier of distributed generation technology. The engineering
proficiency of Turbo-Genset, the manufacturing and advanced aerospace technology
of Magellan combined with the existing technology of Altek position the
companies well for a very exciting future in the area of distributed generation
solutions."

Commenting on the MOU, Frank Button, General Manager, Magellan Aerospace
Corporation stated:

"This agreement will allow us to use advanced technology gained through the
manufacture and maintenance of high performance military turbines to upgrade the
performance and durability of Altek's industrial turbine. The additional
capability of Turbo Genset's High speed Generator will produce a product with a
unique and competitive advantage for an emerging energy market."



For further information, please contact:

Turbo Genset Inc UK                            Tel: +44 (0)20 8564 4460
Colin Besant, Chairman and Chief Executive
Fraser Searle, Chief Financial Officer

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

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

Seton Services (IR)
Toni Vallen                                    Tel:+44 (0)20 7373 3536
                                               Fax:+44 (0)20 7792 0430
                                               Email: toni@setonservices.com

Company Website:                               www.turbogenset.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 (I-Power) 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.


Altek Power Corporation develops timely, profitable and environmentally
responsible energy solutions. As an independent power producer, Altek provides
quick-to-market electrical generation plants which respond to the North American
energy crisis. In January 2003, Altek acquired from AEP Gas Power Systems LLC
all of the business, patents pending, and rights relating to a 1.2 MW, gas
turbine powered electrical generator ("the Innovator"). In May 2003, Altek
entered into a separate agreement with Magellan to test and modify to industrial
standards, the gas turbine engine used to power the Innovator. Further
information may be found at www.altekpower.com.


Magellan Aerospace Corporation is a leading global supplier of technologically
advanced aerospace systems and components. As one of the most integrated and
comprehensive aerospace industry suppliers in the world, Magellan designs,
engineers and manufactures a wide range of aero engine and aero structure
components for aerospace markets, advanced products for military and space
markets, and complementary proprietary products for the power, oil and gas
markets. Further information may be found at www.orenda.com


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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