August 20, 2008

I wanted to update you on the current status of our various program from our past updates.

Our rescheduled Air Force visit again has been rescheduled, this time for early September. While we are not thrilled with the rescheduling we understand that the many people who want to attend are very important and have busy schedules. To that end, the Air Force & some of their friends are coming for a visit that will take place this coming week of August. Other talks regarding the FTV are continuing to move forward. We will release more details as developments warrant.

Our discussions with GM and other OEMs with regard to the IsoTorque differential continue to move forward. A representative from Torvec just recently returned from GM’s proving grounds. There, an evaluation schedule was developed that is very extensive and is awaiting final approval from GM’s management. In the interim, GM is sending a Front Wheel Drive (FWD) transaxle so Torvec can manufacture and install its IsoTorque differential for GM’s FWD platforms in addition to the Rear Wheel Drive Platform (RWD) that was delivered at the end of June.

Our other projects, such as our CV Joint and IVT, are still proceeding. As stated before, we will release more details as developments warrant.

Unfortunately, we deal with large bureaucracies that follow their own time consuming procedures regardless of our efforts to accelerate their pace. As always we value our shareholders support, and want you to know we are making every concerted effort to bring all these projects to fruition as speedily as possible.

Sincerely,

James Gleasman
CEO