Global Technovations Receives Purchase Order From Jiffy Lube for the First 154 OSA Units for Rollout of Nationwide Oil Analysis Program
PALM BEACH GARDENS, Fla.--Aug. 3, 2001--Global Technovations, Inc. (AMEX:GTN) or ("GTI", or the "Company") announced today that it had received its' first purchase order from Jiffy Lube International, Inc. ("Jiffy Lube"), a wholly-owned subsidiary of Pennzoil-Quaker State Company, for 154 of its patented MotorCheck(TM) on-site oil analysis ("MotorCheck(TM)" or "OSA") units to be placed at Jiffy Lube-owned and operated service centers throughout the United States and Canada. Jiffy Lube is the nation's largest franchising organization in the fast oil change industry with 2,100 service centers and will serve approximately 31,000,000 customers in 2001.As announced on May 7, Jiffy Lube entered into a definitive agreement with the Company providing terms for the purchase or lease of up to 1,000 OSA units to be placed at select Jiffy Lube service centers by the end of next year. The May agreement provided for the delivery of up to 300 units this year and up to 700 more in 2002.
Many of the remaining Jiffy Lube locations not offering on-site oil analysis will offer a comprehensive mail-in program to be supported by six Company owned and operated mini-labs located in various U.S. regions.
In addition to offering oil analysis to existing customers, Jiffy Lube is developing marketing programs, featuring MotorCheck(TM), that will begin launching later this year and will be developed to generate additional demand for Jiffy Lube services.
In anticipation of this purchase order and receiving the related financing described below, the Company ordered components and commenced manufacturing OSAs in early July. The Company anticipates delivering and installing units weekly. Assuming satisfactory continued performance, Jiffy Lube has advised the Company that it will place purchase orders for the next 146 OSA units during September 2001.
The Company also announced that along with the receipt of the purchase order, a multi-billion dollar New York Stock Exchange listed company ("leasing company") agreed to provide the lease financing on favorable terms to help finance production of the first 300 OSA units. Based on Jiffy Lube's purchase order for the first 154 OSA units, the leasing company provided the Company with financing to manufacture these units. Additional financing, on similar terms, for up to 846 more OSA units will be provided by the leasing company if purchase orders are received from Jiffy Lube, and financing is required by the Company.
Will Willis, Chairman and CEO of GTI, stated, "This purchase order and financing should be viewed as affirmation of the level of commitment and interest from Jiffy Lube. This will take GTI to a new level of MotorCheck(TM) awareness for both the commercial industry as well as for the consumer. We are very pleased in the confidence that Jiffy Lube and the financing company have placed in the capabilities and performance of GTI's OSA technology. We have successfully installed nine OSA units in Sacramento, California and we are scheduled to install an additional 25 OSA units in the West Coast during August 2001."
Jiffy Lube, located on more than 2,100 of the busiest street corners in America, is synonymous with convenient car care. Every day more than 70,000 people go to Jiffy Lube for Signature Service(SM). Why? Because Jiffy Lube Signature Service is more than an oil change. Jiffy Lube pioneered the fast oil change industry in 1979 and today serves as many as 31 million customers annually. Jiffy Lube International is a wholly owned subsidiary of Pennzoil-Quaker State Company , a leading worldwide automotive consumer products company, marketing more than 1,300 products with 20 leading brands in more than 50 countries.
Global Technovations, Inc., develops, assembles, and markets the patented MotorCheck(TM) and TruckCheck(TM) On-Site Analyzer, "an oil analysis mini-lab in a box", the solid state spectroscopic analyzers for liquid petroleum marker detection systems, the PetroAnalytics(TM) line of diesel fuel and gasoline properties analyzers for the automotive, truck and heavy-duty equipment service markets, and it also manufactures, assembles and distributes audio speakers for the automotive industry through its Onkyo America, Inc. subsidiary, which is one of the largest manufacturers and distributors of audio speakers in North America. For more information, visit http://www.Globaltechnovations.com.
Forward-Looking Statements
The implications from the matters discussed in this press release relating to GTI's manufacturing and delivery of 146 OSAs, the receipt of additional Jiffy Purchase orders, and the availability of additional financing from the leasing company, are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 (the "Act"). Additionally, words such as "expects", "intends", "believes" and similar words are used to identify forward-looking statements within the meaning of the Act.
Some or all of these forward-looking statements may not occur. These statements are subject to risks and uncertainties that could cause actual results to differ materially from those contemplated in such forward-looking statements. Such risks and uncertainties include the following: (1) the continued reliability of the OSA technology over an extended period of time, (2) the ability of the Company to raise additional capital on acceptable terms to fund its current operating losses, and (3) the ultimate success of the OSA units and its acceptance by Jiffy Lube customers. The Company does not intend to update any forward-looking statements. Investors should also consider the factors contained in the Company's filings with the Securities and Exchange Commission.