Top Source Announces Strategic Alliance
18 November 1998
Top Source Announces Strategic Alliance and Largest Ever OSA Purchase Order
PALM BEACH GARDENS, Fla.--Nov. 17, 1998--Top Source Technologies, Inc. (AMEX: TPS) announced today that it has entered into a strategic alliance with Flying J Inc., a $3 billion national firm engaged in all facets of highway-related products and services. Flying J will purchase and market the MotorCheckT on-site used oil analyzer ("OSA-II") in up to 100 of their truck stop service centers across the country. The potential multi-million dollar agreement contains an initial purchase order for 10 MotorCheckT analyzers, which is the single largest OSA-II sale in Top Source history. Although the specific terms of the strategic alliance agreement are confidential, the agreement covers the potential purchase of up to 100 OSA-IIs, payment of a per sample technology licensing fee, and joint development and marketing of product enhancements to assist in the further commercialization of the OSA-IIs within the truck stop industry.
Will Willis, Chairman and CEO stated, "We are very excited about the opportunity to work with a company of the size, quality, and reputation of Flying J. They are the nations' premier truck stop operator and are an excellent strategic partner to help accelerate the market awareness and acceptance of our used oil analysis technology. Additionally, with their assistance, we will implement a number of technology modifications that should radically increase truck driver acceptance and use of our instrument. This initial 10 unit sale will result in revenue recognition that nearly equals all previously combined OSA revenue, since inception, as well as providing for continuing, on-going revenue generation via a per `click' technology licensing fee."
J Phillip Adams, President of Flying J, stated, "The MotorCheck(TM) analyzer provides us with a new way to expand the breath and depth of the services we provide to our trucking customers. We intend to aggressively market this innovative service to the thousands of truckers who visit our truck service centers. We are optimistic that this new alliance with Top Source will result in a series of future trucking industry innovations."
Top Source Technologies, Inc. develops, assembles, and markets sophisticated technologies including the patented MotorCheckT On-Site Analyzer, "an oil analysis mini-lab in a box," and proprietary Overhead Sound Systems.
Forward-Looking Statements
The statements discussed in the press release relating to the Company's expectations that it will place up to 100 OSA-IIs in Flying J centers and statements relating to Flying J's expectations are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. The results anticipated by some or all of these forward- looking statements may not occur.
Important factors that could cause actual results to differ materially from the forward-looking statements include the following: (1) unexpected manufacturing problems or technical difficulties with the OSA-II, and (2) Flying J's decision not to purchase additional OSA-II units after their initial 10 unit purchase.