Bolder Technologies Announces a Strategic Relationship with GP Batteries
12 January 2001
Bolder Technologies Announces a Strategic Relationship with GP Batteries
GOLDEN, Colo., Jan. 12 Bolder Technologies Corporation
announced today a preliminary understanding in the formation of
a broad strategic relationship with GP Batteries International Limited. The
initial focus of the strategic relationship will be to leverage GP Batteries'
proven expertise in very high volume/low cost battery production to
significantly reduce the cost of Bolder's patented Thin Metal Film (TMF(R))
batteries. GP Batteries is one of the world's major battery manufacturers and
a market leader in Asia. GP Batteries produces more than two billion
batteries per year of which more than 300 million are spiral wound. Bolder
would potentially move the bulk of its TMF(R) battery production to GP
Batteries' manufacturing facilities in China. In addition, the partners are
exploring other areas of cooperation, including the potential for developing
Far East markets for both Bolder's TMF(R) batteries and current and future
end-use products based on TMF(R) batteries, according to Roger F. Warren,
chairman, president and CEO.
"We are extremely pleased to be working with GP Batteries, one of the
world's leading battery manufacturers," Warren stated. "Shipments of our
SecureStart(TM) Portable Jump Starter continue to grow, and we have received
good indications of interest in our upcoming Mini Max 900 Portable Jump
Starter. We have already had great success in cost reducing these products by
outsourcing plastic and electronic components in China. With the potential
transfer of TMF(R) cell production to GP Batteries' facilities, we could
achieve very significant additional cost savings, while increasing our
flexibility. We will be able to improve our ability to respond to growing
demand by increasing production quickly and economically. When you combine
these advantages with the opportunity to develop one of the world's largest
markets, you can see why we are so excited," concluded Warren.
Bolder's ability to realize significant TMF(R) cell manufacturing cost
savings through outsourcing to GP Batteries is dependent on the Company's
ability to raise new capital to fund operations over the next 12-15 months
prior to an eventual transfer of manufacturing operation to GP Batteries.
Additionally, a decision to transfer manufacturing operations to GP Batteries
may result in substantial charges to revalue Bolder's manufacturing related
assets as a result of the new operating model.
"We are very excited to be working with Bolder Tech," said Andrew Ng,
Chairman and Chief Executive of GP Batteries. "The Bolder TMF(R) battery is
one of the most exciting technologies emerging in the battery market. We
expect to provide a very high quality, cost competitive as well as flexible
manufacturing capability for Bolder. In addition, we see significant market
opportunities for both the battery and products such as SecureStart(TM) in the
Far East."
GP Batteries, which is listed on the main board of the Singapore Stock
Exchange, is a major manufacturer of spiral wound rechargeable and other
batteries with annual sales in excess of U.S. $300 million. It is a member of
Hong Kong-listed Gold Peak Industries (Holdings) Limited, which operates
manufacturing and direct distribution facilities in 15 countries. Websites of
the two companies are http://www.gpbatteries.com.sg and http://www.goldpeak.com .
SecureStart(TM) is a small, lightweight, rechargeable device that can
provide an instant engine start on a dead battery in a car, truck, tractor or
boat. It features a built-in flashlight and cable clamps for jump starting,
weighs less than five pounds, can be easily stored in any vehicle and
recharges in minutes.
Bolder Technologies Corporation, headquartered in Golden, Colorado,
manufactures and markets advanced, high-power spiral wound rechargeable
batteries based on its patented Thin Metal Film ("TMF(R)") technology. The
Company is developing and commercializing consumer and OEM battery products
with the TMF(R) technology, including the SecureStart(TM) Portable Jump
Starter, that use proven lead-acid electrochemistry in a proprietary
configuration with a higher power density than any commercially available
rechargeable battery. The TMF(R) technology offers numerous advantages over
existing batteries for current and future applications, including near-term
opportunities in the marine and auto after markets for 12V primary starting
batteries. Bolder's website is http://www.boldertech.com .
Bolder's TMF(R) technology also has possible future applications in the
pending auto industry conversion from 12V to 36V and Hybrid Electric Vehicle
systems, both directly through vendor sales and indirectly through a license
agreement with Johnson Controls, Inc. (JCI).
This announcement contains forward-looking statements that involve risks
and uncertainties, including statements that are preceded by, followed by or
include the words "believes," "plans," "intends," "expects," "anticipates,"
"will," "should" or similar expressions. For such statements, Bolder claims
the protection of the safe harbor for forward-looking statements contained in
the Private Securities Litigation Reform Act of 1995. Actual results may
differ materially from the results predicted, and reported results should not
be considered as an indication of future performance. Factors that could
cause actual results to differ from those contained in the forward-looking
statements include potential difficulties in raising additional capital on
terms acceptable to the Company and in achieving market acceptance for the
Company's present and future products, and whether and how Bolder's proposed
strategic alliance with GP Batteries is implemented, as well as those factors
set forth in Bolder's registration statement on Form S-3 filed on August 16,
2000, the Annual Report on Form 10-K for the year ended December 31, 1999 and
the Quarterly Report on Form 10-Q for the quarter ended September 30, 2000,
each of which has been filed with the SEC. Bolder undertakes no
responsibility to publicly update or revise any of the forward-looking
statements that may be in this release.
CONTACT: Paul C. Kelly, CFO of Bolder Technologies Corporation,
303-215-7290; or Philip L. Thomas of The P. L. Thomas Group for Bolder
Technologies Corporation, 312-704-1800.