Czech Army to Purchase More Tatra Trucks; Tatra to Invest in Modernization and New Products

    W. PALM BEACH, Fla.--June 12, 2002--SDC International, Inc. ("SDC") (OTC:SDCN) today confirmed two news stories released in the Czech Republic by the official Czech Information Agency (CIA) and the Czech Press Agency (CTK).
    According to both the CIA and CTK releases, the Czech army looks to buy 1,230 trucks from Tatra over the next five years. This will be 650 heavy vehicles worth 5.8 billion Czech crowns (USD 178 million) in the first phase and 580 lighter trucks worth 1.7 billion Czech crowns (USD 52 million) in the second phase, according to Czech Defense Minister Jaroslav Tvrdik in an interview given June 7th. The vehicles should ensure the army's mobility and modernization, Trdvik noted, praising Tatra's excellent reputation in Kuwait, Bosnia and other foreign military sites. The Czech Republic is one of the newer members of NATO. According to the Defense Minister, the funds are now available for the project because the installment payments for the previously purchased L-159 combat fighter jets have been completed.
    In a another story released June 10th by the Czech Information Agency (CIA), Czech truck factory Tatra intends to invest this year USD 12 million into the modernization of its production and preparation of new product lines. The company already this year has invested USD 5 million. The new owner of Tatra, American-based SDC International, "is convinced that the investments will assist in a new prosperity at Tatra and Tatra will again be a renowned brand", Tatra board chairman Milota Srkal said at the Tatra exposition in the AUTOTEC fair in Brno, Czech Republic. The AUTOTEC Fair is attended by more than 560 companies from 17 nations.
    The CIA release continued to report that SDC, which acquired a stake of 91.61% of Tatra shares last year, kept a controlling stake of 51% while selling 40.61% to Terex Corporation , a strategic shareholder of SDC. The remaining eight per cent is held by minority shareholders. SDC, together with Tatra, intends to use the extensive Terex network to distribute Tatra brand vehicles. Tatra intends to protect the current markets in Russia, China, India, Slovakia as well as the Czech Republic. This year, it received a significant contract from India, which guarantees the sales of more than a thousand vehicles. It plans to enter the American market, where it has recently established a joint venture, the American Truck Company.

    About SDC International

    SDC International is a publicly traded U.S.-based company focused on acquiring well-established industrial manufacturers with substantial revenues within Central and Eastern Europe. Tatra was the first acquisition in SDC's plan. Visit the SDC website at www.sdcn.com.