September 20, 2005

I am writing to give you a brief update of what is happening at Torvec.

We have installed our Modular Hydro-Mechanical transmission into our Tahoe test vehicle. We have performed initial functionality testing to validate our data acquisition / sensor system. Our data acquisition system monitors a minimum of 20 different aspects of our transmission every tenth of a second, including:

• Engine / Pump / Motor RPM
• Three pressure transducers
• Temperature
• Input / Output RPM
• Fuel Flow measurement within ± .2 of a percent

We have also completed development of our own more advanced engine controller to replace the basic controller previously used.

We intend to perform the standard EPA sanctioned City and Highway driving cycle tests, as well as a modified version of these test, by increasing the acceleration rates to reflect more realistic moderate, rapid, and “teenager” drive scenarios. Modification of these tests gives us a closer approximation to “Real World” driving. We will also endeavor to obtain and perform “Real World” driving tests used by American Automobile Association (AAA) which have received such recent notoriety. In order to eliminate human driving error between tests and give us even greater accuracy and consistency in our test data, we have created a special computerized driving program (where the computer actually drives the vehicle remotely) to run the Tahoe through all testing cycles with both the stock automatic transmission and our IVT.

In addition we have installed our new and improved steer-drive in our FTV™. After years of testing and research we have built and installed our “production ready” steer-drive with 30% fewer parts and have filed for worldwide patent protection. We are confident this latest generation steer-drive will increase the already impressive performance of the FTV™ in extreme environmental conditions. We are excited that we will be able to demonstrate this improved steer-drive to a delegation from Peng Pu / Shanghai Automotive when they visit us in furtherance of continuing ongoing negotiation on our FTV™ and other technologies.

We want to again emphasize that the FTV™ was designed to be a high-speed secondary road vehicle, with exceptional off-road capabilities. This is the unique benefit we feel is delivered by our FTV™. The FTV™ should not be compared to a tank or bulldozer, because although similar in appearance, the functionality and use are not.

Please take the time to review the brief presentation on road conditions around the world by clicking here (1.5Mb) (For those without PowerPoint a free viewer can be downloaded here). You will see why we are encouraged at the possible market opportunities in China and other Pacific Rim nations.

Our Iso-Torque™ prototype is nearing completion. The differential housings have been machined and the gears are undergoing final heat treatment and the cutting of axle splines for final installation into our Nissan 350Z. After a brief break-in period, testing and demonstration will begin.

More in-depth information on these and other items of interest to our shareholders in our 10-QSB field with the SEC by clicking on the link at the bottom of Torvec’s homepage.

Our shareholders deserve as much current information about Torvec, its finances and operations in as timely a fashion as we can legally disclose these matters. In contrast to previous CEOs, I intend to deliver frequent, although perhaps brief at times, updates as developments warrant. But please remember communication can be a two-way street – please feel free to write, email, or call me directly and I will endeavor to share with you as much information as I legally can.

Sincerely,

James Gleasman
Chief Executive Officer