REGI U.S., Inc. Announces That Rand Cam Power Generation License Agreement Extended
VANCOUVER, British Columbia--June 9, 2003--REGI U.S., Inc. (OTCBB:RGUS), U.S. subsidiary of Reg Technologies, Inc. (TSX VENTURE:RRE), wishes to announce that REGI has agreed to extend the power generation license to Rotary Power Generation, Incorporated (RPGI) until December 31, 2003.REGI agrees to grant an exclusive worldwide license to Rotary Power Generation for the manufacture and sale of Power Generation equipment utilizing the Rand Cam(TM) technology.
| -- | RPGI agrees to complete the study of the design, analysis, manufacturing costs, risk assessment and marketing analysis of the Rand Cam(TM) technology for the power generation application. |
| -- | RPGI agrees to pay REGI US$100,000 on or before December 31, 2003, in order to own the exclusive worldwide license for the manufacturing and sale of the Power Generation Rand Cam(TM) application. |
| -- | RPGI will pay REGI a six (6) percent royalty on the sales of engines, parts and service and fifty (50) percent of sublicense fees and royalties utilizing Rand Cam(TM) technology used in electrical power generation equipment. |
| -- | Five (5) years from the date of the Agreement the minimum annual royalty and/or sublicensing fees payment shall be US$500,000. If REGI does not receive this minimum payment on an annual basis, REGI shall have the right to revoke the REGI license. |
RPGI has been able to identify and quantify the deployable and portable power generation needs of the U.S. Department of Defense (DOD). This extension of the study period will allow potential sublicenses to validate the value of the Rand Cam(TM) technology and further increase the value to REGI in the form of higher and larger sublicense fees and royalties.
About REGI U.S., Inc./REG Technologies, Inc.
Reg Technologies, Inc. jointly owns the worldwide rights to the Rand Cam(TM) rotary technology with its U.S. subsidiary REGI U.S., Inc. and is currently incorporating its latest winged rotor technology to dramatically improve sealing and reduce friction in the diesel Rand Cam(TM) engine. The Company has designed and built an air pump for fuel cell applications as well as an air pump for the lumbar seats in automobiles. The Company has also built a compressor for air conditioning units for buses. Currently, our joint venture partner Radian Milparts is developing a diesel engine 42 H.P. engine for unmanned helicopter applications. Reg Technologies, Inc.'s goal is to license the Rand Cam(TM) technology and/or to participate in joint ventures to manufacture specific Rand Cam(TM) applications.
ON BEHALF OF THE BOARD OF DIRECTORS
"John Robertson"
John Robertson
President
Statements in this press release regarding REGI's business which are not historical facts are "forward-looking statements" that involve risks and uncertainties, including the impact of competitive products and pricing, the need to raise additional capital, uncertain markets for the company's products and services, the company's dependence on third parties and licensing/service supply agreements, and the ability of competitors to license the same technologies as the Company or develop or license other functionally equivalent technologies.