July 20, 2004

Welcome to Torvec's new web site! This revamped site is indicative of the changes that are underway at our company. We have designed a new communication vehicle which gives our visitors an informative look inside the exciting developments in progress at Torvec. I look forward to sharing these positive advances with you in this space on a regular basis.

First, the EPA-supervised test results for our hydraulic pump have prompted us to accelerate our plan to install the Torvec Infinitely Variable Transmission (IVT™) in a gasoline powered GM Tahoe. The EPA testing, combined with our independently conducted tests last summer using a diesel powered Dodge Ram, lead us to believe that the Tahoe results will be conclusive, putting Torvec in the enviable position of having developed, tested and proven a breakthrough product ready for commercialization. The IVT™, we believe, is the answer to the dual issues of emissions standards and fuel economy.

Torvec has been busy on other fronts. The Board of Directors, laying the groundwork for the eventual initiation of commercial activity, has installed a seasoned management team. Three senior, battle-tested executives from our consultants, CXO on the GO, have been appointed to operating roles at Torvec. As the newly installed CEO, I look forward to guiding the company to the achievement of its objectives. My CXO colleagues share my excitement.

Finally, it was a fitting tribute to the founder of our company, Vernon Gleasman, that the recent granting of a patent to our pioneering Iso-Torque™ differential coincided with Vern's 92nd birthday. The Gleasman genius is alive and well, and providing Torvec with encouragement and motivation to reach our stated goals.

As we move the company ahead, picking up the pace in dramatic fashion over the coming months, I will be using this space to update site visitors on our progress. I look forward to sharing Torvec's milestone developments with you.

Sincerely

Richard Ottalagana, CEO