WTA Updates On $1.1 Billion India Contract

8 January 2001

WTA Updates On $1.1 Billion India Contract

    EL CAJON, Calif.--Jan. 8, 2001--World Transport Authority Inc. (WTA) (OTCBB:WTAI)(POH:Frankfurt) today updated stockholders on the $1.1B contract with the Premier Skimmer Group Ltd. (PSG) for the manufacture, assembly and sale of the WorldStar vehicle in India.
    The Manufacturing and Distribution License (MDL), signed in September, specifies the purchase of 315 WorldStar assembly lines, and vehicle components for an estimated 200,000 vehicles. The implementation of these factories is projected over a five-year period.
    According to Premier Skimmer Group's Chairman E. Skimmer Alexander in Chennai, India, PSG is making significant progress toward the project's implementation. "We have finished our detailed business market studies. Consequently, we have asked WTA to increase assembly line purchases over the five-year period from 315 to 486. In addition, we feel our initial startup requirements were underestimated, and we plan to order more assembly lines during the first year than we had originally anticipated. First year orders were increased from three lines to 18 lines. We have identified and procured the first three factory sites in Chennai, Bangalore, and Mumbai. Our first three WorldStar assembly lines, have been ordered, and each facility is large enough to expand to a minimum of nine WorldStar assembly lines." Finally, Alexander added, "WTA is reviewing the possibility of sourcing certain WorldStar components in India for worldwide export to their other facilities. We are pleased that our participation with WTA could expand to include export."
    In addition, the Government of India has engineering and technical regulations regarding automotive vehicles, referred to as homologation. Homologation for India is a variant of the European Community (EC) right hand drive. WTA is well into the process of comparing the Indian homologation with the WorldStar technical specifications. WTA's Indian MDL ordered 18 vehicles for testing and marketing, and those units will be built in the next few weeks.
    Alexander also noted that they are moving as quickly as possible to initiate WorldStar production and sales. "The plan is to start technical training of our people at the WTA facility in the Phillipines sometime during the first quarter of 2001. We hope to have the first vehicles off the lines sometime in the second quarter of 2001. We have had excellent support from WTA, and I am confident that sales demand will be impressive."
    World Transport Authority Inc. serves the emerging world's transportation needs through in country manufacturing facilities, using local semi-skilled labor to produce the WorldStar 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 Act of 1934, 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.