Turbodyne Announces Brazilian Distribution Agreement
30 March 1998
Turbodyne Announces Brazilian Distribution Agreement
WOODLAND HILLS, Ca., March 30 /CNW-PRN/ - Turbodyne Technologies Inc.
announced today that it has signed an exclusive
distribution agreement with Astoria International S.A. (``Astoria''), a
prominent Brazilian business group, for representation and distribution of
Turbodyne's Turbopac(TM) products in Brazil, effective April 1, 1998.
``The agreement provides for a minimum quantity of 1,000 Turbopacs(TM) in
the first year, 5,000 in the second year, and 25,000 in the third year,'' said
Walter Ware, Turbodyne's President & CEO. ``Total sales revenue will be
dependent upon the mix of product models shipped.''
``Astoria has the necessary business expertise, integrity and financial
capability to successfully import, warehouse, market and distribute
Turbopacs(TM) in the heavy-duty commercial vehicle sector in Brazil, which
consists of almost four million trucks and buses'', Ware continued.
Astoria, a 20-year old company, also represents Sumitomo Trading Co.,
Seiko Industries, and Nippon Magnetics, among others. Lner Marangoni, a
principal of the company and a well-respected international banker, is the
past President and CEO of Banco VR S.A., a unit of Vale Refeicao Ltda., one of
the largest conglomerates in Brazil. Marangoni has been a frequent speaker at
conferences promoted by Euromoney, Goldman Sachs, Gazeta Mercantil and
international banks, regarding finance and foreign investments in Brazil and
Latin America.
``This is an extremely well-timed relationship for both companies,'' said
Mr. Marangoni. ``Brazil has made the environment a top priority, recently
enacting new laws that impose enormous fines on businesses that pollute the
air. The government is now equipped with a tough legal weapon that makes it
very costly for companies to pollute, and we believe the Turbopac(TM) is the
answer for potential customers to immediately comply with the law.''
Recently announced (press release-3/24) test results on transit buses,
showing decreased pollutant emissions and fuel consumption, have prompted
Astoria to establish a sales office and showroom in Sao Paulo. This action is
expected to lead to the establishment of a wholly-owned subsidiary, Turbodyne
do Brasil Ltda., before the end of the year, and future plans call for
manufacturing under license in Brazil.
Turbodyne Systems, the high technology division of Turbodyne,
manufactures, designs, markets and develops patented pollution-reduction, fuel
economy and performance enhancing technology for internal combustion engines
in the automotive, transportation, construction, marine, agriculture, mining,
military and power generation industries. Commercial sales have begun.
Turbodyne's light metals division is a manufacturer of machined aluminum
castings and a leading supplier to the automotive industry, providing $39
million in revenues in 1997.
Offices and plants are located in Carpinteria, La Mirada, Encinitas and
Woodland Hills, CA; Ensenada and Mexico City, Mexico; Northants, England;
Frankfurt, Germany; Vancouver, Canada; and Paris, France.
TURBODYNE TECHNOLOGIES INC.
``Walter F. Ware''
-----------------------------------
Walter F. Ware
President & Chief Executive Officer
Turbodyne's world wide web address is: http://www.turbodyne.com
This news release contains forward-looking statements concerning the
future performance of Turbodyne Technologies and its subsidiaries, which are
subject to a number of factors including, but not limited to the fact that
fuel savings will vary depending upon the engine, vehicle and duty, general
economic conditions, conditions within the global automotive market, and
political changes both domestically and overseas.
SOURCE Turbodyne Technologies Inc.