CARH Opens WorldStar Production in the Far East
26 April 2000
CARH Opens WorldStar Production in the Far East
EL CAJON, Calif.--April 25, 2000--Composite Automobile Research, Ltd. (OTCBB:CARH) through it's wholly owned subsidiary; World Transport Authority Inc., (WTA) is pleased to announce that it has entered into a unique purchase agreement for the Master License in the country of Pakistan.The purchaser of the Master License is Automotive Technology Opportunities Inc., (ATO), a Nevada corporation headquartered in Springfield, Ill. The consideration for the purchase of the Master License is expected to net WTA US$10,000,000 in license fees over the life of the agreement. Unlike previously announced license sales, due to the size of the country (Pakistan) and its immense population WTA has determined that the most viable and profitable deal is to do it on a factory-by-factory basis. This equates to a revenue stream towards the purchase or the Master License in the amount of US$112,500 per factory sold for US$372,500. WTA has concluded that Pakistan can sustain the building of approx. 90 factories, by way of population. In simple terms, instead of the Master License holder receiving the US$112,500 as in a regular license sale, they will be paying WTA installments interest free for the purchase of the Master License, over the life of the agreement.
Automotive Technology Opportunities Inc. plans to order and pay for their first factory no later than May 31, 2000. Once funds are received for the first factory, WTA has agreed to begin training both management and the necessary labor force that will be needed to implement ATO's business plan. It is further anticipated that as each factory is brought on-line in Pakistan that it will be retrofitted to become a 3 car per day facility versus the standard 1 car per day factory. This will obviously accelerate the payment of the fee for the Master License, as well as increase cash flow to WTA by way of royalties (3 cars per day versus 1 car per day per factory). It is anticipated that the first factory will be located in the city of Lahore, one of the most densely populated regions of the country.
Geographically, Pakistan can be divided into three regions: the lowlands along the Indus in the south and east, the arid plateau of Baluchistan in the southwest, and the mountains of the north. The provinces of Punjab and Sindh, in the east and south, are well irrigated by the Indus and its tributaries. The land is fertile and produces most of Pakistan's food.
Pakistan is 803,936 sq. km. in size, has a population of 129,275,660 based upon 1999 statistical data, as well it is rich in natural resources such as natural gas, petroleum and iron ore. WTA chairman Lyle Wardrop commented that, "Pakistan has long been a central piece of the puzzle needed for WTA to fully realize the potential of the WorldStar(R) vehicle and expects this license to be a spring board for the success of WTA and its shareholders."
COMPOSITE AUTOMOBILE RESEARCH LTD AND World Transport Authority Inc., serve the emerging world's transportation needs through in-country manufacturing facilities utilizing local semi-skilled labor to produce the WorldStar((R)) line of utility vehicles.
This press release contains forward-looking statements within the definition of Section 27A of the Securities Act of 1933, as amended and such section 21E of the Securities Exchange Act of 1934, as amended. These forward-looking statements should not be used to make an investment decision. Please refer to the WTA Web site WWW.WTAWorldstar.com and other sources for more detailed information. Investor Relations is at 619/387-8888.