February 17, 2010

We are sure you will be as proud as we are that Torvec delivered the FTV to Tyndale Air Force, Florida on February 9, 2010 with truly excellent results. A delegation from Torvec, lead by board chairman, Gary Siconolfi, was on hand for the off load. Torvec’s team spent three days at Tyndale explaining all the modifications made to the FTV and making numerous test runs on a variety of courses, including pivot-turning on wet, heavy sand dunes. During the testing, the FTV attained speeds of close to 50 mph. The people in charge of the Advanced Combat Firefighting Vehicle were extremely pleased with Torvec’s commitment to the program and our creative solutions to their very tough requirements.

Over the course of the visit, Torvec and Air Force personnel in charge of the Advanced Combat Firefighting Vehicle Program discussed the next steps to be taken to achieve the program’s goals. In addition, over the next several months, Air Force personnel will be taking the FTV on an extensive “road show” on behalf of Torvec, involving demonstrations to representatives of other branches of the U.S. military, other federal government agencies, state and local governmental units as well as to first responder organizations and associations across the country. Significantly in this regard, the demonstrations are designed to feature both manned and unmanned FTV operations and as well, to highlight the FTV’s multiple platform capabilities.

On another note, as we stated at the annual shareholders meeting, we have multiple programs for our IsoTorque with a variety of automakers. We are working with GM on multiple Front Wheel Drive (FWD) and Rear Wheel Drive (RWD) models, FWD models at Ford and RWD models at Hyundai and Tesla. These programs are proceeding apace with preliminary evaluation scheduled for mid to late March for our Cadillac CTS IsoTorque. We anticipate subsequent evaluation of our FWD IsoTorque to follow approximately four to six weeks later. This holds true for our programs with Ford, Hyundai and Tesla.

We are also making significant strides in the commercialization efforts for the IsoTorque in the aftermarket. Our first target car models will be the Corvette C5 – C6 and the 2010 Camaro. Below you will see the CAD representation of the two units (Corvette & Camaro). We are currently working with our suppliers to solidify manufacturing costs and timelines.

We continue to be very excited about our current programs with the Air Force, car manufactures and our pursuit of the aftermarket. We will endeavor to keep you informed about developments.

Sincerely,

Torvec