Professional Auto Racing Teams Endorse and Incorporate Global Technovations' MotorCheck Technology
10 October 2000
Professional Auto Racing Teams Endorse and Incorporate Global Technovations' MotorCheck Technology
PALM BEACH GARDENS, Fla.--Oct. 10, 2000--Company Receives Orders and Expands Into Two New Market Segments
Global Technovations, Inc. ("GTI" or the "Company") (AMEX:GTN) announced today that its patented MotorCheck(TM) On-Site Used Oil Analyzer ("OSA-II") technology has expanded into two significant new market segments -- the professional auto racing and bus fleet maintenance markets. As a result, OSA-II technology is now used in 21 separate industries by some of the largest companies in the United States and internationally, including seven Fortune 500 companies.
Professional Auto Racing
1. The Company has received an endorsement from one of NASCAR's most prominent race teams, Bill Davis Racing of Highpoint, North Carolina, which is using the OSA-II during the 2000 NASCAR Winston Cup race series. Team drivers Ward Burton and Mark Blaney, as well as crew chief Tommy Baldwin, Jr. (one of the sport's most coveted young crew chiefs), comprise a formidable competitive nucleus that has propelled Bill Davis Racing to the upper echelons of professional auto racing.
According to Davis Team Members, "We are tickled to see the OSA-II detect and pinpoint premature wear in our engines. The OSA-II will be a first line of defense when it comes to testing different engine parts to gain that ever-elusive edge. Racing engines are expensive and time consuming to build. Enabling the Bill Davis team to do their own on-site analysis saves time and money, not to mention the security factor. We have to protect our ideas."
During the Winston Cup operation, the team will use the OSA-II in the Dyno room. Team Members further stated, "By establishing a database, we can virtually track an engine from break-in to the racetrack and be able to spot a potential problem before the engine ever leaves the shop. We also plan on doing oil analysis at the track, when we test new engines. Now, the OSA-II will bring racing to a new level of perfection." Entering its 13th NASCAR season this year, the Bill Davis Racing Team continues its preparation for a title effort with three teams, after a strong close to the 1999 season. With the addition of OSA-II to their arsenal, the team expects to increase their competitive edge.
2. The Toyota Racing Development ("TRD") of Torrance, California, has purchased an OSA-II unit. TRD, which specializes in manufacturing high-performance/racing engines, began as the source for development of the many Toyota factory-racing programs, including the CART's All-American Racing Team and Team Toyota. Toyota's MotorCheck(TM) OSA-II includes a customized titanium measurement for racing teams for use in the powertrain development group. This brings the total number to 16 metals that the OSA-II measures.
Private and Transit Bus Fleets
1. GTI has entered into a four-year lease with a Connecticut-based private bus fleet operator. This contract represents the Company's first OSA-II placement in the bus fleet maintenance market, which includes a luxury bus fleet, private branded bus fleets, and school buses.
2. The Commonwealth of Virginia's Greater Richmond Transit Group purchased a MotorCheck(TM) OSA-II for their bus fleet maintenance program. The OSA-II will be incorporated into a program to extend oil drain intervals and reduce hazardous waste for fleet management.
Municipal bus fleets can apply for reimbursement of 80% of the funds used towards maintenance projects and capital equipment from the U.S. Department of Transportation Federal Transit Administration, thus allowing them to have on-site oil analysis for a minimal cost.
GTI Chairman and CEO Will Willis stated, "Our entree into two new market segments is continuing proof of the quality of our technology and its potential across many markets. OSA-II activity and visibility continues to increase on a daily basis. We believe we are closer than ever to a major breakthrough."
Global Technovations, Inc., develops, assembles, and markets the patented MotorCheck(TM) and TruckCheck(TM) On-Site Analyzer, "an oil analysis mini-lab in a box", and manufactures, assembles and distributes audio speakers for the automotive industry through its Onkyo America subsidiary, which is one of the largest manufacturers and distributors of audio speakers in North America.
Forward-Looking Statements
The statement discussed in this press release relating to the Company's expectation that "we are closer than ever to a major break though" is a forward-looking statement within the meaning of the Private Securities Litigation Reform Act of 1995.
Results anticipated by 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 acceptance of the OSA-II technology by the marketplace, (2) the general tendency of large corporations to slowly change from known technology to emerging new technology, (3) 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, (4) the decision by a large company not to enter into or delay entering into a significant OSA-II agreement, (5) the decision by new or existing customers to place orders for the lease or purchase of multiple OSA-II units despite successful trial evaluation periods, (6) the continued reliability of the OSA-II technology over an extended period of time, (7) the Company's ability to market OSA-IIs, (8) 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.