East European Imports to Purchase the ARO Factory
28 January 1999
Worldwide Equipment Corp. Announces the Intent of its Partially Owned Subsidiary, East European Imports, to Purchase the ARO Factory
ARDSLEY, N.Y.--Jan. 28, 1999--Worldwide Equipment Corp. (OTC BB:WWDE) announced Thursday that East European Imports Inc., its partially owned subsidiary received official acceptance from Romania's State Ownership Fund ("SOF"), of its privatization bid to acquire majority ownership of the ARO, S.A. factory.
Final purchase negotiations between East European Imports and the State Ownership Fund will begin on Monday, Feb. 1, and should conclude by Feb. 17, 1999.
"We were very pleased when we received the SOF's acceptance announcement this morning," said John Perez, president and CEO of East European Imports Inc. "We believe that the SOF has made the right choice and we look forward to a successful negotiation."
The SOF opened the auction to sell its 70% shares of ARO Campulung on Dec. 9, 1998. All privatization bids were due Jan. 26, 1999. East European Imports Inc. ("EEI") was the sole bidder.
Today, both EEI and SOF representatives signed the minutes of the meeting where EEI's bid was accepted, confirming the negotiations would begin on Monday.
ARO, S.A. Campulung has been building ARO vehicles for over 35 years. The factory has had declining production ever since 1989, when it last reached the factory's highest production year of 20,000 units. For the last decade, ARO has produced approximately 6,000 vehicles per year, with 50% being exported.
As a potential factory owner, EEI believes that if critical equipment and labor conditions are improved, not only could the demand in the United States be fulfilled, but also current European markets, such as France can be expanded.
EEI believes that with its acquisition of the factory it can reestablish the production to full capacity and serve its current distribution markets. EEI currently has over 150 automotive dealers in the United States with orders for ARO 244 vehicles that exceed the current output of the factory.
Perez explained, "With the plan we've prepared, and the continued support of our investors, it is only a matter of time before ARO is a competitor in the 4 X 4 automotive marketplace."
Mitchell Hymowitz, interim president of Worldwide Equipment Corp. stated, "We are a step closer in the success of the ARO project. The ownership of the factory gives EEI the best chance to control its destiny."
Safe Harbor Statement
Except for the historical information contained herein, certain of the matters discussed in this press release are "forward looking statements" as defined in the Private Securities Litigation Reform Act of 1995, which involve certain risks and uncertainties, including but not limited to, changes in general economic conditions, material prices, labor costs, interest rates, consumer confidence, competition, environmental factors and governmental regulations affecting the company's operations.