Nigerian Master License Closes

18 July 2000

Nigerian Master License Closes

    EL CAJON, Calif. - Composite Automobile Research Ltd., through its wholly owned subsidiary World Transport Authority Inc., Tuesday announced that pursuant to the company's news release of June 22, 2000, all documentation regarding the purchase of the Master License for the country of Nigeria has been signed by WTA and IMR Motors respectively. Please see WTA news releases of May 25, 2000 and June 22, 2000 regarding Nigeria.

    Upon signing of the Master License, SIGWA Motors Ltd. of Nigeria has agreed to purchase the first factory; scheduled for delivery early in the fourth quarter of 2000. The balance of payment for the purchase of this factory is in process. Production of the first WorldStar(R) vehicles is expected to occur in an expedited manner once the factory and components arrive on site in Nigeria. It is expected that this first factory will be used as a showcase and training facility for rapid expansion throughout Nigeria. Presently, WTA engineers and sales personnel are compiling a Nigerian vehicle specification list for approval and purchase by the Nigerian partners. WTA's Washington D.C. Sales and Marketing office estimates gross revenue to WTA of USD $11 million based on a total of five factory purchases and components for 1,500 vehicles, to be achieved over the first two years of this contract.

    Company spokesman R.S. Redstone released the following statement: "We are pleased to begin WorldStar(R) manufacturing, assembly and sales operations in Nigeria. Our initial license is SIGWA Motors Inc., a known and respected company in Nigeria. The market response for this product has been exceptionally positive and we see great opportunities for this process and product in Nigeria."

    WTA Senior Vice President Joseph W. Parker remarked on the speed of the transaction. "Generally speaking, automotive industry transactions of this scale in the international marketplace are very long and drawn out events. We are quite pleased with the commitment and belief that our new partners have shown WTA by wanting to move this transaction along as rapidly as possible. We are looking forward to a long and quickly expanding relationship with this group. Both parties expect to benefit greatly from this venture."

    Commenting on other African business, Joseph Parker said, "I have recently returned from a very successful three-week business trip to the African continent. I expect that WTA will be able to make additional announcements pertaining to this trip in the near future."

    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 labour to produce the WorldStar(R) line of utility vehicles.