SuperBAT Products Successfully Enter Pacific Rim Markets
SAN DIEGO--Feb. 27, 2002--SuperBAT Inc., a subsidiary of BAT International Inc. (OTC:BAAT), has delivered a major order of its SuperBAT TVT (Total Vehicle Treatment) Anti-Friction Metal Treatment Lubricant Additive to the Pacific Rim Markets.After two years of field-testing and contract negotiations to enter the Asian wholesale markets, SuperBAT landed its first major order in December 2001. SuperBAT made its first delivery of TVT product to the Long Beach Harbor for shipment to the Pacific Rim in December 2001. This first shipment contained enough TVT product to bottle 17,600 (8 oz.) bottles, while Pacific Rim retailers were launching a major marketing campaign in 3,000 retail outlets including some industrial applications. In early January a second order, four times larger than the first, was placed. SuperBAT delivered that second order, which constitutes a resale of 70,000 bottles.
This production and marketing effort represents a major change in corporate strategy from financing only R&D to a now successful sale of one of our products. BAT subsidiaries and affiliate companies have been involved in the development of revolutionary products for over nine years. Several attempts in the past have been unsuccessful to enter the retail markets, even while offering greatly superior products, because of insufficient marketing budgets. For example, other lubricant additive companies saturate late night TV with infomercial budgets of tens of millions of dollars. This type of retail marketing is very unstable and sales directly follow TV infomercial budget airtime. However, commercial and industrial customers, once sold on a product, require very little additional marketing for future re-orders.
Two years ago BAT management together with management from its affiliate companies decided to concentrate on commercial and industrial wholesale foreign markets. Long-term testing of SuperBAT's product line was then initiated in several Pacific Rim arenas including Mexico.
Our TVT product line was tested under the most strenuous conditions in Asian military off-road applications operating under full load and passed with impressive results. One test included operating a military vehicle, in both on-road and off-road conditions, until engine failure with no lubricating oil in its crankcase and no oil pressure after treatment with TVT lubricant products. The vehicle ran for 180 kilometers (112 miles) non-stop with no oil. Without TVT the engine would have failed in just a few minutes.
In order to service its customers in a timely manner, SuperBAT had to manufacture its own product line. It completed construction of its own blending plant in December 2001. The plant was further expanded and streamlined in January 2002. The plant is now capable of producing enough TVT per day to allow its customers to bottle over 20,000 (8 oz.) bottles per day. Funding for plant construction, two years of testing, and for company operations was raised privately by SuperBAT. The TVT plant is totally paid off and SuperBAT had its first profitable month in January 2002.
SuperBAT management expects earnings of approximately 3 cents per share for the year 2002 based on the sales history and current purchase volumes with existing customers. New customers are expected from additional field-testing and marketing efforts as well as increased sales volumes from existing customers, which could contribute to additional earnings. SuperBAT presently has 8,000,000 shares issued with BAT International holding approximately 75 percent of these shares. If you would like to order product or require more information please visit our Web site at http://www.baat.com/superbat or call 619/409-8977 or email superbat@baat.com.
BAT International is organized as a holding company with major ownership positions in a set of subsidiary companies now commercializing advanced automotive and energy technology products. For more information, see BAT's Web site at http://www.baat.com or call Investor Relations 619/409-8977 or 619/409-9598, or email bat@baat.com. Information about trading prices and volume can be obtained at several Internet sites including http://www.bloomberg.com under the ticker symbol "BAAT."
Forward-looking statements in the release are made pursuant to the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995. Investors are cautioned that such forward-looking statements involve risks and uncertainties, including without limitation, continued acceptance of the Company's products, increased levels of competition for the Company, new products and technological changes, the Company's dependence on third-party suppliers, and other risks detailed from time to time in the Company's periodic filings with the Securities and Exchange Commission.