Angola Signs On With WTA

9 May 2000

Angola Signs On With WTA

    EL CAJON, Calif.--May 9, 2000--Composite Automobile Research Ltd. (OTCBB:CARH) (POH:Frankfurt), through its wholly owned subsidiary World Transport Authority (WTA), Tuesday announced that it has signed an agreement for the purchase of the Master License for the country of Angola with Servauto Comercio e Servicos Industrials (SARL), of Luanda, Angola.
    In addition to purchasing the Master License, Servauto Comercio e Servicos Industrials has paid WTA a significant cash deposit toward the purchase of its first factory and the components necessary to build its initial 50 vehicles. Total purchase price for this portion of the contract is US$647,000, with the factory to be located in suburban Luanda. The outstanding balance will be paid within 30 business days from the signing of the agreement. Servauto will produce the WorldStar vehicle in Angola with Fiat or Volkswagen engines to begin with and diesel engines, as they become available.
    WTA President Lyle Wardrop voiced excitement over the circumstances under which this agreement was signed. "Our new Angolan partners recognize the opportunity our product represents. They moved with impressive speed to be one of the first in Africa to be able to produce and sell the WorldStar utility vehicle. This shows the level of enthusiasm we are encountering as we begin to introduce the WorldStar vehicle, as well as the WorldStar marketing plan, across the African continent."
    Servauto Director, Lal Karsanbhai agreed. "I am confident the WorldStar utility vehicle will dramatically effect the transportation industry in Angola. At long last we can locally manufacture a vehicle that is rugged and practical, and that has appeal as a consumer-oriented vehicle as well as being a reliable workhorse for industrial purposes. The WorldStar vehicle can be produced inexpensively and at the same time can be sold at a price, which achieves a very attractive profit for all concerned. The WorldStar factory system is so portable it will allow us to assemble and sell vehicles in parts of the country that were previously inaccessible."
    WTA's Washington D.C., Sales and Marketing office estimates the initial value of this contract to be US $1,000,000 and estimates its five year value should exceed $8,000,000, including factories, vehicles and royalties.
    Servauto has extensive experience in Angola's automotive industry. For more than 3 years, Servauto has assembled vehicles for Nissan Motor Company. It is also a distributor for Chevy, Opel, and Cadillac. Servauto's network of showrooms and service will provide outlets for WTA vehicle sales throughout Angola.
    The population of Angola is approximately 12,000,000. In addition, Angola is one of the largest oil and diamond exporting countries in Africa. Most oil companies are expected to quadruple their investments there within the next five years.