BAT Forms Joint Venture with Chinese Co.
15 January 1999
BAT Forms Joint Venture with Chinese Co. to Manufacture Electric Bikes & Scooters
First Two Containers of Electric Bicycles Have Now Arrived in U.S.
CHULA VISTA, Calif., Jan. 15 -- BAT International's
(OTC Bulletin Board: BAAT) has formed a joint venture company with Suzhou
Machinery Holding in Mainland China to manufacture electric bicycles, mopeds
and scooters. Suzhou Machinery Holding is a large holding company that has
set up a subsidiary company, SMA, that is already manufacturing an electric
bicycle in Suzhou, China. The new Chinese joint venture company, SABAT, has
been formed to take electric bicycle and scooter technology provided by BAT
and its subsidiary Electrobike, and produce a whole line of advanced
technology electric bicycles and scooters for world markets. Production costs
are very low and will allow sale of electric 2 & 3 wheeled transportation at
very competitive prices.
A total of $4 million in capital has been allocated to the Joint Venture
to meet Chinese government capitalization requirements, including $2 million
dollars in cash. BAT is a 25% owner of the joint venture and is putting in
both technology and $200,000 in cash. The Chinese plant now manufacturing
electric bicycles will expand production to include several new product lines
now under development and testing including scooters, young adult cycles and
additional electric bicycles. BAT has exclusive world wide marketing rights
for all production of the joint venture outside of the People's Republic of
China. BAT will retain 25% of the profits from production of electric bikes
and scooters and will retain 100% of the profits from marketing and
distribution outside of China.
Electrobike is already initiating distribution of the first electric
bicycle, the "Jazz" in U.S. markets. A U.S. distribution center has been set
up at Electrobike headquarters at the "Brewery Complex" in LA. Two container
loads of electric bicycles are being off-loaded and inspected at the
warehouse. Several bicycle retailers have already agreed to feature the
Electrobike "Jazz" in their stores and a very positive initial response to the
product has occurred in test market locations such as Palm Springs, CA.
The Jazz electric bicycle has superior performance. This includes very
long range (20-25 miles), a top speed of 17 miles per hour and very quick
acceleration. At the same time, pricing is below almost all other electric
bicycles in the market, with a target retail price of $749. The "Jazz" has
some unique features that make it very practical and fun to ride including
easy step-through frame, throttle take-off, quiet hub motor, and battery box
placed low in the frame for better balance. This contrasts with other
competing electric bicycles that use noisy friction drive or cumbersome pedal
assist motors and have limited range (some competing electric bicycles have as
little as a 5-8 mile real riding range on one charge). The Jazz has an easy
to disconnect battery box with a carrying handle that can be recharged in any
wall outlet.
A point of purchase display that includes signs, collateral materials and
accessories is provided to dealers that includes batteries, electric bicycles,
t-shirts, hats, etc. A videotape will also be distributed with an overview of
the entire Electrobike product line, including the Miripolski Motorcanvas (see
press release 10/28/98) and other electric bicycles & scooters to be released
in 1999. A gala grand opening celebration is planned at Electrobike's Brewery
Complex in February. Various prototype models now under development including
the next generation electric bicycle, electric scooter and "Miripolsky
Motorcanvas" will be on display. Plans for U.S. production of the Motorcanvas
and other special marketing announcements are planned as a part of this event.
The Motorcanvas will also be part of a gala art opening of the artist
Miripolski in San Francisco on February 5th. Further announcements providing
details about these products & events will be coming out soon.
Electrobike is currently seeking distributors and retailers for the Jazz
Electrobike. One distributor in Hawaii has already been signed up and
numerous other companies are in discussions with Electrobike about possible
distribution in other U.S. locations. Market support for product line
introduction will include an Electrobike show tour, media and ad materials,
competitive presence in national and international events & other activities.
If you're interested in being a dealer or distributor or want more
information, please contact Marcus Hays (818) 763-0385, cell (619) 954-5025 or
fax (818) 763-5964 or visit the Electrobike web site at http://www.ride1.com.
BAT International is organized as a holding company with major ownership
position in a set of subsidiary companies now commercializing advanced
automotive and energy technology products developed by BAT over the last six
years, including SuperBAT's anti-friction metal treatment. Other products
include electric vehicles, super-efficient or high power engines, advanced
batteries and power electronics, lubricant additives, and electric power
generation, (for information, see BAT web site at http://www.baat.com).
This press release contains forward-looking statements that should not be
used to make an investment decision. Please refer to our web site and other
sources for more detailed Company information (Investor Relations,
(619) 409-8977).