Jiffy Lube and Global Technovations Join ForcesPALM BEACH GARDENS, Fla.--May 7, 2001--Worried about the health of your car? A blood test for your car may be just what the doctor ordered. Global Technovations, Inc. (AMEX:GTN) ("GTI," or the "Company") today announced that its patented MotorCheck(TM) on-site oil analysis technology ("MotorCheck(TM)" or "OSA") will be offered nationwide by Jiffy Lube International, Inc. ("Jiffy Lube"), the largest franchisor of convenient auto maintenance service centers with its network of more than 2,100 service centers.
In April 2001, GTI announced it had entered into a letter of intent with an undisclosed "leading automotive service retailer." That retailer is Jiffy Lube, which entered into a definitive agreement with GTI on May 1, 2001.
Jiffy Lube, which will serve more than 31 million customers in 2001, is the largest franchising organization in the rapidly expanding fast lube industry. Established in 1979 as an association of seven centers in the Western United States, Jiffy Lube is now headquartered in Houston and has service centers in 49 states as well as Canada. About 70 percent of Jiffy Lube service centers are franchised; the remaining centers are Jiffy Lube-owned and operated. Jiffy Lube markets a complete line of automotive maintenance services and is best known for its Jiffy Lube Signature Service(R), which is more than just an oil change.
The MotorCheck(TM) analysis is great for those consumers wishing to obtain an assessment on whether or not to keep, or trade-in their automobile, or purchase another used vehicle; or whether their automobile's engine is in good condition prior to making a long trip. Also, the Program helps to solve the problems inherent with purchasing automobiles via the Internet by allowing individuals offering their car for sale to post their analysis results for review by prospective buyers. In addition to Engine Oil Analysis, Jiffy Lube will use the MotorCheck(TM) analysis to offer their customers Transmission and Gearbox fluid analysis. Jiffy Lube will also use the MotorCheck(TM) technology to aggressively build their fleet business.
The Jiffy Lube agreement allows for the offering of a complete MotorCheck(TM) oil analysis program, which includes the placement of as many as 1,000 OSA-II on-site oil analysis units. Under the terms of the agreement, Jiffy Lube has initially purchased 24,000 mail-in kits for use in many of their locations nationwide. The initial rollout incorporates a comprehensive mail-in program, facilitated by Global Technovations, with intentions to move toward an integrated on-site program, utilizing on-site OSA-II analyzers. The agreement contemplates initial placement of up to 300 OSAs at many of their retail locations across the country during the fourth quarter of 2001, and continuing the expansion through 2002. In addition to OSA-II lease or sales revenue, Global Technovations will receive on-going usage fees and other revenue.
Will Willis, Chairman and CEO of GTI, stated, "The agreement with Jiffy Lube is a huge milestone for our Company. We are very excited about working with such a high quality company. We are convinced that this Program will demonstrate that our revolutionary MotorCheck(TM) technology is commercially viable and provides a much-needed service to consumers by offering them the opportunity of a one-stop vehicle check-up using GTI's patented MotorCheck(TM) oil analysis."
Mr. Willis continued, "The agreement executed with Jiffy Lube includes performance goals that are expected to translate into millions of dollars of minimum annual revenue. Jiffy Lube will be implementing a comprehensive national and regional marketing campaign to introduce the program. The magnitude of this agreement could lead to an acceleration of MotorCheck(TM) awareness and increased penetration into other markets/applications. We expect this alliance to result in increased shareholder value for the patient and long-term shareholders of GTI."
Marc Graham, President of Jiffy Lube, stated, "Our research shows that many consumers do not fully understand how proper maintenance according to manufacturer's recommendations protects the value of their vehicle. We are excited about the MotorCheck(TM) program and it fits well into Jiffy Lube's strategic plan, which includes educating consumers on proper maintenance of their vehicles. In addition, we believe this Program truly offers the consumer an 'objective independent assessment' of their engine's condition because potential repairs identified by MotorCheck(TM) will not be performed at Jiffy locations. We also believe that by investing in proper maintenance for their vehicle on the front end, consumers will benefit over the life of the vehicle and at the time of trade in. That is why we are pleased to offer our customers the opportunity of purchasing this comprehensive diagnostic service. The MotorCheck(TM) on-site oil analysis technology is just another way for us to better advise and serve our customers."