Laforza Completes Acquisition of Magnum Operations in Italy

28 September 2000

Laforza Automobiles Completes Acquisition of Magnum Manufacturing and Automobile Operations in Italy; New Personal Security Vehicles to Be Available in 2001

    ESCONDIDO, Calif.--Sept. 27, 2000--Laforza Automobiles Inc. (Pink Sheets:LFZA) announced today that it has completed its acquisition of all of the assets, including tooling, inventory, and intellectual property, from Magnum Industriale s.r.l., in Italy.
    Magnum has, to date, been Laforza's source of supply for Laforza bodies, frames, and accessories.
    Laforza has, for the past several years manufactured and distributed, primarily in the United States, a well-regarded luxury sport utility vehicle under the Laforza name-plate.
    "We are now prepared to go full-speed ahead with our plans to additionally manufacture and market the Laforza Magnum PSV (personal security vehicle), and the Laforza VAV, a military personnel vehicle," said David Hops, president and chief executive officer of Laforza.
    "The world has become an increasingly dangerous place for wealthy individuals, business executives, and law enforcement and government officials," said Hops. "Our objective is to provide a new class of vehicle for personal security that looks and performs like a luxury SUV."
    Laforza management is currently working on the integration of the Italian factory operations with its worldwide sales and marketing team. New models are expected to be introduced in a number of markets, including the United States, South America, Europe, Africa, and the Middle East in early 2001.
    Typical armored vehicles are custom made, adding an average of $40,000 to $100,000 to the base price of an automobile. The Laforza Magnum PSV is projected to have a base sticker price of $100,000. Laforza anticipates Italian plant manufacturing capacity to be 200 vehicles for the next year, with expansion of the company's production capacity in the future.