SDC Takes Next Step Toward TATRA Acquisition

23 March 1999

SDC Takes Next Step Toward TATRA Acquisition

    PALM BEACH, Fla.--March 23, 1999--SDC International, Inc. (OTC BB:SDCN) today announced that Komercni Banka, the Czech bank in charge of selling the Skoda truck making subsidiary, TATRA, a.s., sent its letter to SDC informing SDC that its offer for Tatra has been evaluated and that, based upon the offer, it has been agreed that SDC may update and finalize its due diligence, a step which was one of SDC's conditions in its offer of March 8th.
    Based upon its findings, SDC can then confirm or amend its final offer by April 7th. The results of negotiations will be made known no later than April 16th, and, assuming them to be positive, "the Purchase Agreement should be executed not later than May 7th, according to the bank's letter to SDC. Additionally, an earlier Komercni Banka letter stated that "subject to the selling shareholder's approval, the process might be finalized in a shorter period."
    Just last week, SDC announced that the ex-DaimlerChrysler manufacturing "czar", Dennis Pawley, had joined SDC as a shareholder and Strategic Board Advisor. The week prior to that announcement, SDC had announced that the Detroit-based automotive manufacturing and management firm, Harbour and Associates, had become a SDC strategic partner. Harbour's client list includes such companies as General Motors, Ford, and BMW.
    SDC is currently in what it hopes to be the final leg of negotiations with Komercni Banka and Skoda, a.s., both of the Czech Republic, to take over controlling interest and to acquire all bank debt of Tatra, a.s., one of the leading specialty truck manufacturers in Europe. Founded in 1850 and currently a producer of over 2,000 trucks annually, Tatra's revenues in 1998 were almost US$240 million, with assets exceeding US$190 million. Tatra employs about 6,000 workers.
    SDC International is a publicly-traded U.S.-based company founded to manufacture, finance and globally distribute high-quality industrial and transportation products manufactured in former Communist countries. Upon the acquisition closing and consolidation of financial statements, SDC would be one of the few Bulletin Board stocks to rapidly qualify for the larger U.S. exchanges.