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Global Technovations has Record Month for OSA-II Orders

28 March 2000

Global Technovations has Record Month for OSA-II Orders

    PALM BEACH GARDENS, Fla.--March 28, 2000--Global Technovations, Inc. (AMEX:GTN) today announced that it has signed agreements with several customers to ship and install a total of 18 OSA-II on-site used oil analysis instruments during the coming weeks. These new placements have made March 2000 a record orders month, and will significantly strengthen OSA-II's presence in the truck service industry given that the majority of these units are going to truck related applications.
    Speedco, an affiliate of Equilon, a Shell/Texaco partnership, has ordered an additional ten OSA-II units during March, which will bring their total number of units being used nationwide to 38. On February 25th, 2000, the Company announced that it had entered into a strategic alliance with two unnamed companies, which was expected to generate between $500,000 and $750,000 in annualized incremental revenue for the Company. Speedco, is one of the previously unnamed customers. Speedco now offers the "VehiCare Program", which provides on-site preventative maintenance and repairs for major fleets of trucks, trailers, forklifts, utility, and construction vehicles. As part of the VehiCare Program, select customers send their oil samples to ten Speedco "hub" locations. After the first week of implementation, it was recognized that high-volume Speedco locations would require two OSA-II units to process the anticipated increase in sample volume. Speedco will place its ten new OSA-II units into those locations.
    Will Willis, Global Technovation's President and CEO, stated, "This new phase of our Speedco relationship builds on the success both organizations have had to date. It marks the beginning of an expanded partnership designed to enhance the quality, timeliness and accessibility of superior preventative maintenance programs for the trucking industry, both for drive-up on-site customers and for customers who previously sent their samples to a laboratory for analysis."
    Mr. Willis, further commented, "The trucking industry has been the most receptive to adopting our technology because they are familiar with oil analysis and recognize the economic advantages of conducting oil analysis on-site to furnish results immediately, rather than waiting days and sometimes weeks later for lab results. Our recent trucking industry placements simply demonstrate that our momentum is building and that our accelerated marketing and sales efforts are beginning to have a meaningful impact."
    Additionally, the Company announced that it was beginning to have success penetrating the used auto appraisal market. Two auto appraisal companies are now offering the Company's MotorCheck(TM) oil analysis mail-in kits at major car shows and via the Internet. These sites can be viewed at http://www.carvaluesplus.com and http://www.auctionwatch.com.
    Mr. Willis stated, "Auto appraisers represent a critical link to the Internet used-car market sales development. Individuals purchasing cars from other cities usually contract with an appraiser to inspect the car before transfer of ownership. We see an engine and transmission MotorCheck(TM) analysis as an integral part of any objective, third party evaluation, and a means to provide a consistent assessment of the condition of any used car. Our preliminary success with Auto Appraisal Group and Car Values Plus is a result of our initial and continued efforts to penetrate the Internet used-car market."
    On Tuesday, March 14 and Friday March 17, the Company once again was the subject of major market news stories when NBC in Detroit and ABC in Los Angeles, joined Memphis, Philadelphia, Tampa and Atlanta in airing consumer advocate challenges to the veracity of the MotorCheck(TM) on-site used oil analysis. Mr. Willis commented further, "The OSA-II passed with flying colors, once again, causing our telephone switchboard to light up with calls from people interested in purchasing mail-in kits or seeking information about getting an OSA-II unit for their auto service establishment."
    The Company also announced that its Annual Meeting of Stockholders scheduled for April 3, 2000 is intended to be a "catch-up" meeting necessitated by delays in consummating the TSA transaction. This meeting will not include any new business items or discussion of Company business.
    Mr. Willis concluded, "We are very encouraged by the increase in OSA-II awareness and sales activity. Although the 18 OSA-II units identified in this release do not include the larger, multiple-unit programs on which we are working, they do demonstrate the breadth and depth of our marketing efforts. The continued increase in OSA-II placements; the initial shipments of our MightyClean 2000(TM) fast eating hydrocarbon microbes; the initial sale of the MotorCheck(TM) mail-in kit display shippers; and our continued progress on the acquisition front; are the basis for our confidence that 2000 will mark a major milestone in our turn-around and Company repositioning efforts."
    Global Technovations, Inc. develops, assembles, and markets the sophisticated, patented MotorCheck(TM) and TruckCheck(TM) On-Site Analyzer, "an oil analysis mini-lab in a box", and distributes MightyClean 2000(TM), a proprietary hydrocarbon eating microbe cleaning product.

Forward-Looking Statements

    The forward-looking statements discussed in this press release relating to the Company's expectations that (1) its alliance with Speedco to process VehiCare's oil samples will begin generating between $500,000 to $750,000 in annualized revenues commencing on April 2000, (2) its accelerated marketing and sales efforts are beginning to have a meaningful impact, (3) 2000 will be a major milestone, (4) the continued increase in OSA-II placements, (5) the initial shipments of our MightyClean 2000(TM) fast eating hydrocarbon microbes, (6) the sale of the MotorCheck(TM) mail-in kit display shippers, and (7) the Company's continued progress on the acquisition front, are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995.
    The results anticipated by these forward-looking statements may not occur. These statements are subject to risks and uncertainties that could cause results to differ materially from those contemplated in the above forward-looking statements. Such risks and uncertainties include the following: (1) the volume of samples received from the third party oil analysis program is sufficient to generate $500,000 to $750,000 in annualized revenue, (2) Speedco may decide not to expand to new locations during calendar 2000, or not to use the OSA-II units at new locations if they do open, (3) retailers and potential customers may be reluctant to purchase the Company's new Retail MotorCheck(TM) Display Units or the Company's MightyClean 2000(TM) product, (4) the ability of the Company to reach contractual terms with one or more prospective acquisition targets, (5) the completion of due diligence work for potential acquisition targets, (6) the Company's ability to obtain required financing to complete the acquisitions, (7) the decision by a municipality and/or potential other new or existing customers to place orders for the lease or purchase of multiple OSA-II units despite successful trial evaluation periods, (8) the continued reliability of the OSA technology over an extended period of time, (9) the Company's ability to market OSA-IIs, (10) the acceptance of the OSA-II technology by the marketplace, (11) the general tendency of large corporations to slowly change from known technology to emerging new technology, (12) potential future competition from third parties that may develop proprietary technology, which either does not violate the Company's proprietary rights or is claimed not to violate the Company's proprietary rights, (13) the Company's ability to attract strategic partners for the OSA-II, and (14) the Company's ability to resolve contractual issues with potential strategic partners. Investors should also consider information contained in documents filed by the Company with the Securities and Exchange Commission.