Turbine Truck Engines Signs Letter of Intent to Purchase Controlling Interest in Chinese Corporation
Deland, Florida | April 20, 2010
Turbine Truck Engines, Inc. (TTE) (OTCBB: TTEG) TTE has signed a Letter of Intent to purchase a controlling interest in the business and equity of GuangDong Kingtec Electrical Co., Ltd. (Kingtec). The Letter of Intent states that a definitive stock exchange agreement is to be signed by the two companies with TTE emerging as the beneficial owner of 80% of the outstanding shares of the combined entity.
Kingtec is a division of Hua Tec Enterprise Co., Ltd. and is a leading developer and manufacturer of heavy-duty starter motors and alternators for trucks, passenger vehicles, construction equipment, military equipment, gensets and marine transportation devices. Located in Zhuanshui Town, Wuhua County, Guangdong Province, Kingtec is a National Top-Five Heavy-duty Starter Manufacturer, a National Class II Metrology Enterprise, and a member company of the China Heavy-duty Truck Group.
Kingtec employs over 800 people, and is a designated ISO/TS16949: 2002 approved enterprise. Manufacturing operations are housed in state-of-the-art facilities where the company is currently producing 500,000 of its highly respected 'Lotus' motors per year, featuring more than 100 models, many of which have been awarded a 'National Important Product' designation. Kingtec's products are supplied to China's major engine manufacturers such as Shanghai Diesel Engine Co., Ltd., Hebei North China Diesel Engine Co., Nantong Diesel Engine Co., Ltd., Hangzhou Engine Co., Ltd., Cummins Engine Co., Ltd., Luoyang Hechai Engine Co., Ltd., Chongqing China National Heavy Duty Truck Group Ltd., as well as Weichai Power Co., Ltd., and Wuxi Power Engineering Co., Ltd. Kingtec products are also exported to more than 20 countries around the world.
The proposed acquisition will advance the strategic interests of both companies. Kingtec has been seeking an alliance that could afford the company additional technological capabilities and opportunities. The company also desires to gain entrance into new markets, particularly the North American trucking industry and, more broadly, the U.S. transportation market. TTE will enjoy access to Kingtec's manufacturing capabilities for the production of prototypes of its Detonation Cycle Gas Turbine (DCGT) engine. Kingtec will also provide engineering and manufacturing capabilities for the production of heads for gensets, another target application utilizing the unique capabilities of TTE's proprietary DCGT engine.
TTE's Founder and President, Michael Rouse, who has orchestrated TTE's efforts in China, stated, "Over the last two years, we have been developing relationships inside China which we believe will enable us to accomplish our ultimate objective of introducing a commercially viable, industry altering technology. Kingtec is a remarkable company whose capabilities and business model represent an excellent fit for Turbine Truck. The acquisition will immediately and dramatically improve our financial position while building momentum in our quest to finalize the development and production of the DCGT in China and around the world."
About GuangDong Kingtec Electrical Co., Ltd.
To learn more about GuangDong Kingtec Electrical Co., Ltd., visit http://www.kingtecgroup.com/wuhua/enwuhua.asp
About Turbine Truck Engines, Inc.
Turbine Truck Engines, Inc. is a technology company focused on the development, manufacture and testing of its New Energy and Environmentally Efficient Truck Engine intended for mass market distribution in the United States and abroad. The new engine can utilize any known fuel source (gasoline, diesel, propane, natural gas, hydrogen, methanol, ethanol or LPG) or fuel mixture, yet needs little or no coolant, lube oil, filters, or pumps. Its unique, lightweight turbine design has few moving parts, significantly reducing maintenance costs. The innovative cyclic detonation process produces a complete combustion of fuel-oxidizer mixtures, resulting in greater fuel economy and fewer harmful exhaust emissions. For more information concerning Turbine Truck Engines, Inc., visit www.ttengines.com.
Safe Harbor: This release may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. The risks and uncertainties that may affect the operations, performance, development and results of the company's business include, but are not limited to, fluctuations in financial results, availability and customer acceptance of our products and services, the impact of competitive products, services, and pricing, general market trends and conditions, and other risks detailed in the company's SEC reports.