Bolder Layoffs Beckon Battery Deal

GOLDEN, Colo.--Facing financial difficulties, Bolder Technologies Corp. has pulled the plug on 89 full- and part-time positions among its 126-member workforce while pursuing an outsourcing arrangement with GP Batteries of Singapore.

If the plan goes forward, GP will produce Bolder’s TMF (Thin Metal Film) cells, “which would generate significant additional cost savings...and enable Bolder to focus on product development and marketing/sales in North America and Europe,” said Roger F. Warren, chairman, president and chief executive officer.

“Bolder’s ability to realize significant TMF cell manufacturing cost savings through outsourcing to GP Batteries is dependent on the company’s ability to raise new capital to fund operations over the next 12 to15 months prior to an eventual transfer of manufacturing operations,” said Warren “Additionally, a decision to transfer manufacturing operations to GP Batteries may result in substantial charges to revalue Bolder’s manufacturing-related assets as a result of this new operating model,” he said.

“Given the current environment, these steps are necessary to bring the company’s overhead and operating expense in line with projected revenue and conserve resources while the company considers its strategic options for the future,” said Warren.

“Despite this cutback, we are maintaining a core of technical, sales and administrative staff. We plan to continue to develop new TMF cells for use in future Advanced Engine Starting applications including the upcoming auto industry conversion from 12V to 36V batteries and new Hybrid Electric Vehicle systems,” Warren reported.

“We will also continue to explore opportunities for raising additional capital while also pursuing other strategic alternatives available, including the engagement of a significant partner who can provide both funding and product application expertise,” he said. “If additional capital is not forthcoming, we would have to consider other options including a sale of the company or a further reduction of the company’s operations,” Warren warned.

“The cost reduction initiatives were prompted by the company’s review of its sales through Dec. 31, 2000, its sales forecasts for 2001, and the current retail climate generally, all of which caused the company recently to lower its projected revenue forecast,” he said. “In addition, fluctuations and uncertainty in the capital markets to this point have impacted the company’s ability to raise the additional financing necessary to fund its continued operations at current levels. The company will record a charge to its operations in the first quarter of 2001 to reflect the restructuring.”

For more information, contact www.boldertech.com.