BTO Offered $53 Million Incentive Package From California and Hillwood

LOS ANGELES, Aug. 27 -- Build-To-Order, Inc. (BTO), a new American car company, has been offered $53 million in incentives from the state of California and Hillwood to locate its vehicle assembly center at AllianceCalifornia in San Bernardino. The facility would produce automobiles using leading edge techniques in lower-volume capability and modularity driven directly by consumer demand, effectively eliminating finished goods inventory.

BTO would also intend to make the center a destination point for retail consumers and a tourist attraction, contributing to the overall automotive experience. BTO's total economic impact on California could include 1,000 high-paying jobs and a more than $1 billion enhancement to the state and local tax base.

"California is the fifth largest economy in the world and it is quite logical that it should have its own car company -- products designed and built by Californians for Californians. Recently, I signed Assembly Bill No. 1493, which calls on automotive manufacturers to begin to cut tail pipe emissions of green house gases beginning with the 2009 model year. I am pleased to say that BTO has agreed to support this policy and will work with my agencies to see that it is successful," said Governor Gray Davis.

Secretary of the California Technology, Trade & Commerce Agency, Lon Hatamiya said, "BTO may qualify for more than $23 million in tax and training incentives because we believe this company could be an important catalyst in stimulating a significant number of new manufacturing jobs in the region."

"AllianceCalifornia is quickly becoming a hotbed of economic development activity in my district and steady growth in California, and is one of the big reasons that a new car company would seriously consider locating here," said State Senator Nell Soto. "The positive economic impact on the region and this district would be substantial and I know BTO will be a good corporate citizen that will work hard to balance consumer, shareholder, and regional needs. Their track record to date has been one of collaboration, which is quite refreshing."

AllianceCalifornia is a 2,000-acre commercial development project located at the former Norton Air Force Base in San Bernardino. Judith Valles, Mayor of San Bernardino, echoed her support for the project, "San Bernardino is about a strong workforce, it's about manufacturing and location, it's about a good quality of life, good jobs, a safe environment and a love affair with the automobile; evidenced by our annual classic car event, Route 66 Rendezvous® -- named California's best special event. I want to send a strong signal of support to BTO that we want them to make our wonderful city their home."

Hillwood is in the final stages of being selected as the master developer for the project and has offered BTO a $30 million financing package for the construction of the company's first vehicle assembly center. AllianceCalifornia is modeled after Hillwood's flagship 15,000-acre AllianceTexas project that has attracted more than 110 companies and created 20,000 fulltime jobs in North Texas.

"Hillwood believes that the many advantages of locating at AllianceCalifornia, which combines air, rail, and highway transportation, would provide a unique value proposition to BTO, " said Ross Perot Jr., chairman of Hillwood, one of the country's largest commercial developers. "We are excited about having an extremely progressive and cutting-edge company like BTO establish itself here. We look forward to working with the state and local agencies to make this happen," said John Magness, senior vice president of Hillwood, and AllianceCalifornia's project leader.

BTO continues to assess a number of locations throughout the United States and is pleased by the overwhelming level of support California has given the company. "The possibility that one day we will be able to say that Build-To- Order is a new American car company located on a former American Air Force base, alongside the famous Route 66, in California, is very compelling. The BTO Board of Directors must continue to weigh all of its options and in due time, will make the final decision. With these recent commitments, California will certainly be among the top candidates," said William Santana Li, BTO President and CEO.

About Build-To-Order Incorporated (BTO)

Build-To-Order, Inc. (BTO) is a new American car company that is developing an innovative portfolio of vehicles, built off the same platform, sharing major parts and components and individualized to consumer specifications. BTO is focused on offering customers up-front pricing and a better car buying and ownership experience. The first portfolio of vehicles will be distributed under an American heritage brand of yesteryear and will be built in response to a direct customer order so consumers never have to settle for what is in stock. BTO has partnered with AK Steel ( www.aksteel.com ), Deloitte Consulting ( www.dc.com ), TWR Group Limited ( www.twr.co.uk ), and SHR Perceptual Management ( www.shr.com ) among others to execute its compelling business model. BTO is headquartered in Los Angeles, California and can be reached at www.btoauto.com .

About California

California is the fifth largest economy in the world and produces more than $1 trillion worth of goods and services each year with a population of 33 million people. California continues to lead in technology development, business innovation, cultural diversity, thought leadership, and automotive design. The state capital of California is Sacramento and can be reached at www.ca.gov .

About Hillwood

Hillwood, a Perot company, is ranked as one of the top 10 developers in the country by Commercial Property News and National Real Estate Investor magazine. Hillwood is recognized for its high-profile projects and public-private ventures that bring tremendous value to its customers and partners. Hillwood is best known for its development of the 15,000-acre AllianceTexas, located 15 miles northwest of Dallas-Fort Worth International Airport, and the $420-million American Airlines Center and Victory district in downtown Dallas. The company's projects have received numerous awards, including the Award for Excellence from the Urban Land Institute, the Development of the Decade by the Dallas Business Journal and the prestigious Phoenix Award for remediation. Hillwood is headquartered in Dallas, Texas and can be reached at www.hillwood.com .