BlueStar Systems Announces Major Reorganization
9 February 2000
BlueStar Systems Announces Major Reorganization and Executive Headquarters Relocation, Leading Automotive Aftermarket Company Turns Focus to High-Growth E-Business Opportunity
VANCOUVER, British Columbia--Feb. 9, 2000-- BlueStar Battery(CDNX:BHW.) BlueStar Battery Systems International ("BlueStar"), (hereinafter referred to as the "Company"), today announced a major reorganization aimed at the acceleration and implementation of its business-to-business, E-Commerce distribution model, Pano8(SM).Darwin Sauer, BlueStar founder and former President and Chief Executive Officer, stated, "Over the past several months, we have closely analyzed the Company's primary businesses, the management team and core competencies. The result of this work is a strategic plan that integrates these core competencies with our E-Commerce vision, Pano8(SM). To achieve this vision, I am excited to have the talents of a new and experienced management team for BlueStar Systems".
According to James Risher, Chairman of the Board and Chief Executive Officer, BlueStar Systems, "We are fortunate to have several exciting opportunities available to us that will improve both our current and long-term financial performance and strategically reposition the company for the future. New Management Team
Changes in the management team will primarily affect BlueStar Battery Systems Canada and USA, the marketing and distribution arms of BlueStar Battery Systems International Corporation. With operations throughout Canada and major distribution centers in Indianapolis and Los Angeles, these companies have been primarily responsible for the rapid growth in the company's annual revenues from CND$3.3 million in 1996 to CND$157 million in 1999.
As part of the reorganization, Darwin Sauer, will assume a new position as Chief Strategic Officer. Mr. Sauer was instrumental in leading a consolidation of the power and charging systems industry by acquiring 20 companies in two years. "In his new role, Darwin will be able to focus his tremendous energies on those activities so essential to achieving the strategic vision he set forth, including expanding our distribution reach and attracting key suppliers to our E- Commerce network," according to Mr. Risher.
James Risher, in addition to his current responsibility as Chairman of the Board, will assume the additional role of Chief Executive Officer. Prior to becoming Chairman of BlueStar, Mr. Risher was President and Chief Executive Officer of Exide Electronics Group, a world leader in the manufacture and marketing of uninterruptible power supplies. Mr. Risher successfully defended a hostile takeover attempt of Exide Electronics in 1997 by selling the company to BTR, Plc., a British conglomerate for US$584 million.
The company also named Alden R. Schnaidt, President and Chief Operating Officer. Mr. Schnaidt has nearly 30 years of diversified business experience with companies such as General Electric. Most recently he was President of Cherokee Finishing International. Mr. Schnaidt was formerly Group Vice President of Exide Electronics Group. "Al and I worked together for nearly 13 years. He is a hands-on executive who is extremely qualified to manage the Company's operations and implement its overall business strategies. He is results-oriented and has excellent teambuilding and interpersonal skills", according to Mr. Risher.
In addition, the company has named Kevin P. Meagher, as Vice President of E-Business. Mr. Meagher has nearly 20 years experience in marketing, strategic planning and operations. As a leading architect in network management systems design and development, Mr. Meagher has received design awards from software vendors including IBM, Santa Cruz Operations and Computer Associates.
Mikel Rhodes, Chief Financial Officer and Treasurer, has announced that he will resign his position at the end of February. Mr. Risher stated that, "Mikel has been an important contributor to BlueStar's success. However, he has decided that his long-term personal and career goals will best be served by an advisory role during the transition." Mr. Rhodes will continue to work with the company as a consultant after February. New Headquarters Location
With the expansion of the management team, the Company's executive headquarters location is being moved to Raleigh, North Carolina. According to Mr. Risher, "the Research Triangle area has a business environment uniquely suited for emerging growth companies, providing access to capital and a large pool of resources for our E-Commerce strategy. North Carolina is also home to major automotive aftermarket companies and related businesses that are so important to our current and future customers."
The Company's other businesses, the BlueStar Advanced Technology Center and BlueStar Battery Systems Corporation, located in Vancouver, are focused on the development and manufacture of high performance batteries for mission critical applications. Recognized as an industry leader, the company has recently signed contracts with NASA to develop large retractable lithium cells for the Mars 2001 and 2003 space flight programs and further contracts with the United States Army, Boeing and Hughes Space and Communications for rechargeable cells. Dr. Lynn Marcoux will remain as President of the BlueStar Advanced Technology Corporation.
BlueStar is one of North America's largest integrated sourcing networks for power and charging systems, providing supplier and customer participants with sales, marketing, distribution and support capabilities. The Company, through its electronic commerce network, will market over 11,000 different battery products and automotive electric components, from many of the world's finest manufacturers. BlueStar continues to enhance its product lines through strategic alliances with the world's leading manufacturers, along with the strengthening of the BlueStar participant network throughout North America.