Ajay Sports Commences Manufacturing Joint Venture
5 April 1999
Ajay Sports Commences Manufacturing Joint VentureDELAVAN, Wis., April 2 -- Ajay Sports, Inc. (OTC Bulletin Board: AJAY) announced that the company has reached an agreement with Williams Controls, Inc. to manufacture electronic throttle controls (ETCs) for Williams' truck and diesel engine customers that operate in the rapidly growing Latin and South American markets. This agreement is part of a joint venture, originally signed between Ajay and Williams four years ago, where Ajay's Mexicali, Mexico facility, Ajay Leisure de Mexico, SA de CV, will contract manufacture the ETC systems for Williams. As part of this agreement, Ajay's Mexicali facility has initiated the process of becoming ISO-9001 certified in the manufacture of ETCs. ISO-9001 is the international equivalent of QS-9000, the automotive and truck manufacturing quality standard that has been adopted in the United States by many automotive and truck suppliers. Ajay Sports Chief Operating Officer Clarence H. Yahn stated, "This manufacturing agreement will be a boost to Ajay's operation in Mexicali, in that it provides for sharing of the facility's cost structure and provides a profit opportunity to Ajay based on the efficient manufacturing of the ETC systems for Williams. It also will aid Ajay in dealing with the seasonality of Ajay's golf products business, as there should be a significant amount of manufacturing for Williams Controls in those months when there is normally a reduction in the manufacture of golf bags. Workers in the facility will be cross-trained so they can be transferred from one activity to another." Mr. Yahn further stated, "The ISO 9001 quality standard is not widespread in the manufacturing of soft goods for the sporting goods industry, so this will bring a new quality dimension to our Mexicali facility. Also, now that this manufacturing has begun, it brings the product development personnel of both companies together so that if needs develop for Williams that would lend themselves to Ajay's design and sewing capabilities in Mexicali, Ajay would be able to quickly and thoroughly respond." Ajay Sports, Inc. manufactures and markets leisure living products, including Gary Player(TM), Gary Player Black Knight(TM) and Gary Player Signature golf bags, carts, accessories and gloves; Ajay(TM) and Spalding(TM) bags, gloves and accessories; Dilbert(TM), NFL(TM) and major college-licensed headcovers; Palm Springs Golf(TM) specialty golf clubs, bags and accessories; and In-Motion(TM) casual living furniture, for the United States and select foreign markets. The Company sells golf products through mass merchants, off course pro shops, green grass golf shops, cataloguers and sporting goods stores. The company also sells through its Internet websites, http://www.usgolfshop.com and http://www.leisurelifeinc.com. Forward-looking statements in this news release, if any, are made under the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Certain important factors could cause results to differ materially from those anticipated by the statements, including the impact of changing economic or business conditions, the success of its efforts at Internet commerce, the impact of competition, the availability of financing, the success of products in the marketplace, other factors inherent in the industry and other factors discussed from time to time in reports filed by the company with the Securities and Exchange Commission.