Freedom Motors Signs Contract to Develop Small Rotapower Engine

DAVIS, Calif., Sept. 10 -- Freedom Motors (www.Freedom-Motors.com) has signed a contract with a multi-billion dollar company to develop rotary engines using its licensed Rotapower(R) engine technology. The contracting company expects to sell over 10 million engines per year. Freedom Motors will receive a royalty per engine and be paid engineering services to develop the initial prototype engines. The license granted under this contract includes exclusive rights during the first 10 years and non-exclusive rights thereafter. Freedom Motors will also have an opportunity to purchase engines for use in all applications not covered under this contract.

"This is a major milestone for the rotary engine as it has the potential to become the largest implementation of rotary engine technology to date, even surpassing the millions of engines produced by Mazda," said Jim Toreson, Freedom Motor's CEO. He went on to say, "Freedom Motors is recognized today for its leadership in the design of new rotary engines and is now working with multiple manufacturing firms with the expertise to bring the rotary into a wide variety of applications."

Freedom Motors has licensed the Rotapower(R) engine technology from Moller International (Pink Sheets: MLER), the developer of the M400 Skycar(TM) aircraft. The engines were originally developed for use in Moller's unique vertical takeoff and landing (VTOL) aircraft, but have been licensed to Freedom Motors for manufacturing and distribution for all other non-aviation related applications. Under its license agreement with Moller International, Freedom Motors is required to pass through 15% of any sub-license royalties to Moller International. Rotapower(R) is the trademark of Moller International (www.moller.com) in the USA and other countries.

"The rotary engine is the perfect engine for a great number of high-density power applications where life-cycle cost is a concern," said Paul Moller, President of Moller International. "Our application in the Skycar(TM) is weight and performance critical, just as it is in many other uses. Small size, fuel flexibility, ultra-low hazardous emissions and overall durability are other key advantages the Rotapower(R) engine has over most other choices," he concluded.