BAT Acquires 35% Ownership Position In American Bio-Fuels; BAT Changes Name And Trading Symbol To Green Star Products Inc.
SAN DIEGO--July 23, 2002--B.A.T. International Inc. (OTCBB:BAAT) has completed a major acquisition of a 35 percent position in a biodiesel company -- American Bio-Fuels Inc. (ABF) (see Web site at http://www.americanbiofuels.com).The company is currently in production of biodiesel in Adelanto, Calif., and has a contract of $7.5 million with the USDA Commodity Credit Corporation that provides $1.20/gallon in first year production subsidies. The position by BAT in ABF was obtained in exchange for 21 million shares of BAT stock.
The biodiesel plant uses a propriety continuous flow production process licensed from Bio-Clean Fuels that dramatically lowers capital construction cost, labor, and energy costs. American Bio-Fuels (ABF) has the only continuous flow biodiesel commercial production plant in the U.S.A. that produces ASTM and EPA quality fuel. Current production capacity of 2.5 million gallons per year will expand to 5 millions gallons/year by the end of the 3rd quarter and to 10 million gallons/year within 6-8 months. American Bio-Fuels also has exclusive U.S. rights to an additive that improves fuel efficiency by 8-19 percent and lowers all emissions by 10-40 percent including nitrous oxide (NOx) an emission of great concern in many air districts, particularly California and Texas.
Certification testing of the additive is going on in conjunction with the California Air Resources Board that will verify specific emissions reductions and allow ABF to access $67 million in air district funding that will allow for sale of an estimated 100 million gallons of "alternative diesel fuel" (i.e. 20 percent biodiesel blend or B20) at the same price as diesel fuel in two air districts in Sacramento and Central Valley, Calif. Details of the competitive position markets and income potential from American Bio-Fuels biodiesel production and sales will be detailed in a release planned for July 26 and 29, 2002.
In conjunction with this acquisition, BAT is also undergoing a major reorganization that will include management changes, a change in the name and trading symbol and a strategic position of a portfolio of technologies for a co-marketing effort under the Green Star(TM) product label. This will include SuperBAT Anti-Friction Metal Treatment and Dolphin technologies that will be co-marketed to diesel fuel customers in conjunction with market introduction "alternative diesel fuel" in California, and through other national gasoline and diesel market initiatives. The trademark "Green Star(TM)" has been licensed to BAT by American Bio-Fuels in conjunction with this initiative and the acquisition of 35 percent of American Bio-Fuels. Management changes will be announced in a future news release.
To capitalize on name association with the new product line, BAT has changed its name from B.A.T. International Inc. to Green Star Products Inc. and will trade under a new ticker symbol soon.
BAT has also just completed its certified financial statements in conjunction with an audit by it's CPA firm, Stonefield Josephson Inc. The updated financial statements are now posted on its Web site at http://www.baat.com. The substantial investment in research and development has provided a significant tax-loss carry-forward, which will be used to offset tax on profit from future sales.
A companion press release has been issued at the same time today that deals with the political issues surrounding CO2 emission reduction programs of the states that were covered by USA Today and CNN. A series of announcements over the next 15 days will provide further details about the agreements, product line and competitive position of "Green Star Products." A general outline of the announcement schedule is as follows:
| -- | American Bio-Fuels proprietary continuous flow production process, current capacity and construction plans |
| -- | American Bio-Fuels "Green Star Fuel" product launch in California this fall |
| -- | Expanding market opportunities associated with fleet regulations, new air quality rules and emissions trading |
| -- | SuperBAT "Green Star" lubricant products line |
| -- | Dolphin "Green Star" product line and marketing program |
BAT International Inc. 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, 619/409-9598 Fax, or email info@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.