Centrex, Inc. Signs Agreement to Acquire MicroCars International and to Market MicroCars Manufacturing Technology Internationally Oct 19, 2006 9:40:00 AM Copyright Business Wire 2006 SAN DIEGO--(BUSINESS WIRE)--
Centrex, Inc. (Pink Sheets:CTXI) today announced that a final agreement has been reached with MicroCars, Pvt Ltd., a Sri Lankan company, to handle the international license and business development for the automobile assembly operations that has been developed in Sri Lanka. Centrex will acquire 51% interest and assume control of MicroCars International, a wholly owned subsidiary of MicroCars. This acquisition gives Centrex the rights to represent the MicroCars technology and manufacturing systems in all markets outside Sri Lanka. The Company already has inquiries from several nations, including Nepal, Bhutan, Syria and Sudan.
Stated Jeffrey Flannery, CEO of Centrex, "We have long been very impressed with the capabilities that have been developed at MicroCars in Sri Lanka and our involvement is really a result of the success MicroCars has already demonstrated to the world. We will immediately begin discussions with interested parties to explore the feasibility of creating assembly operations in these developing countries."
Centrex will offer the MicroCars system on a license basis. MicroCars will provide support in design and engineering of the physical plant, training of workers, assistance in materials procurement and management, training in the use of special manufacturing, assembly and quality control technologies, as well as assistance in marketing and government relations. Centrex will receive a percentage of the license agreements it is able to negotiate with parties in other countries, as well as a percentage of royalties or other fees that are associated with each new transaction for a term of three years. This term is renewable for another three years. License fees, royalties and other fees are still being negotiated and most likely will be determined on a case by case basis.
MicroCars was established in 2001 by Dr. Lawrence Perera, a veteran automotive designer and engineer who had previously worked with BMW, Volkswagen and other major automobile manufacturers. Dr. Lawrence developed the concept to create a car manufacturing system that is far less capital intensive so that smaller, developing nations can use the labor force to manufacture and assemble quality, economical cars, vans and pickup trucks.
Investors are cautioned that certain statements contained in this document as well as some statements in periodic press releases and some oral statements of CTXI are "Forward-Looking Statements" within the meaning of the Private Securities Litigation Reform Act of 1995 (the "Act"). Forward-looking statements include statements which are predictive in nature, which depend upon or refer to future events or conditions, which include words such as "believes," "anticipates," "intends," "plans," "expects," and similar expressions. In addition, any statements concerning future financial performance (including future revenues, earnings or growth rates), ongoing business strategies or prospects, and possible future CTXI actions, which may be provided by management, are also forward-looking statements as defined by the Act. Forward-looking statements involve known and unknown risks, uncertainties, and other factors which may cause the actual results, performance or achievements of the Company to materially differ from any future results, performance, or achievements expressed or implied by such forward-looking statements and to vary significantly from reporting period to reporting period. Although management believes that the assumptions made and expectations reflected in the forward-looking statements are reasonable, there is no assurance that the underlying assumptions will, in fact, prove to be correct or that actual future results will not be different from the expectations expressed in this report. These statements are not guarantees of future performance and CTXI has no specific intention to update these statements.
Source: Centrex, Inc.
---------------------------------------------- Centrex Inc. Jeff Flannery 619-342-8096