Transnational Automotive Group Expands Its Cameroon Operations Through Partnership With Group Siantou
Partnership will accelerate TAUG's Cameroon operations with facilities, buses and training.
LOS ANGELES, Feb. 22 -- Transnational Automotive Group, Inc. (TAUG) (BULLETIN BOARD: TAMG) , a global leader in transportation services and sustainable energy development, today announced that in February 2007, the company entered a multifaceted partnership with Group Siantou, a major diversified Cameroon company that operates training institutes, inter-urban bus operations and broadcasting interests.
According to Don Durand, TAUG's president of African Operations, the agreement between TAUG and Group Siantou fulfills three primary immediate objectives: 1 -- acquisition of land and facilities for TAUG's expanding bus operations; 2 -- acquisition of Stella Voyage, an inter-urban bus company owned by Group Siantou that offers services to Cameroon's western provinces; and 3 -- leveraging Group Siantou's training expertise and infrastructure to help recruit and develop thousands of employees that TAUG anticipates hiring in the next several years.
An additional long-term objective of the partnership is to use Group Siantou land for developing a semi-knockdown (SKD) bus assembly plant for deployment to African markets.
TAUG signed a 20-year lease agreement with Group Siantou for a centrally located bus operations facility near Omnisport in Yaounde, with an option to purchase title to the property for USD $450,000. The property has an estimated value of USD $2.4 million. LeCar, TAUG's inter-urban bus company, assumed possession of the property and began operations on 29 January 2007. The new site affords LeCar an ideal location, with space for planned future expansion. Ultimately, LeCar plans to move its headquarters to this site.
TAUG has also agreed to acquire Stella Voyage from Group Siantou by issuing stock and warrants in Transnational Automotive Group Inc. Ultimate valuation and approval are pending, subject to final due diligence. Stella Voyage represents a strategic addition for LeCar, with instant access to the western provinces and other major towns in Cameroon. Stella Voyage continues to operate from the Omnisport site.
Group Siantou will develop and deliver the driver, mechanic, administrative, management and other support training for TAUG's LeBus and LeCar divisions. TAUG intends to employ three to five thousand people in the next several years.
"The partnership with Group Siantou is highly strategic for our work in Cameroon and our expansion throughout Africa," said Dr. Ralph Thomson, TAUG's chairman and CEO. "The new Omnisport LeCar site strengthens TAUG's balance sheet and future expansion plans, Stella Voyage gives LeCar instant access to important markets, and the Siantou Training Institutes enable us to effectively develop the large staff we need to rapidly scale our operations."
About Transnational Automotive Group
Transnational Automotive Group, Inc. (TAUG), a Nevada corporation that trades under the symbol (BULLETIN BOARD: TAMG) , is a transportation and sustainable energy company headquartered in Los Angeles, CA, with operating entities in Cameroon and early-stage operations in Ethiopia, Nigeria and Mozambique. TAUG's vision is to become the leading transportation and sustainable energy company on the African continent, and to establish key infrastructure and workforce development that dramatically accelerates Africa's economy and quality of life. TAUG is currently establishing and operating mass transit systems in leading African commercial and population centers, and preparing for expansion into additional industries, including manufacturing and marketing sustainable bio-diesel fuels.
This news release contains certain "Forward-Looking Statements" within the meaning of Section 21E of the United States Security Exchange Act of 1934. All statements, other than of historical fact, included herein are forward-looking statements that involve various risks and uncertainties. There can be no assurance that such statements will prove to be accurate, and actual results and future events could differ materially from those anticipated in such statements. Important factors that could cause actual results to differ materially from the Company's expectations are disclosed in the Company's documents files from time to time with the Securities Exchange Commission.
Press Contact: Kimball Thomson Next Phase Communications (for Transnational Automotive Group) kthomson@npcomm.com 801.918.3637
FCMN Contact: mld@mgis.com