Axial Vector™ Engine Corporation Signs Preliminary License Agreement With Major India Based Engine Manufacturing Company
Axial Vector™ Teams Up With Kirloskar Oil Engines Ltd, Part of an Engineering Conglomerate Based in India With Over $600 Million in Annual Sales Primarily Derived From the Engine and Power Transmission Industries. A One Million Dollar Deposit Is Made.
Sep 12, 2005
PORTLAND, Ore., Sept. 12 — Axial Vector™ Engine Corporation (OTC Bulletin Board: AXVC) announced today the signing of a preliminary license agreement with Kirloskar Oil Engines Ltd, a 107 year old well known and 'venerable' engine manufacturing company that is publicly traded. Kirloskar is an India based engineering conglomerate with over $600 million in annual sales, consisting mostly of engines, power generation equipment, and related services. The agreement requires Kirloskar to put up a good faith deposit of one million dollars while conducting a technical due diligence on the Engine Technology and Generator Set. The Company will grant Kirloskar first right of refusal to license the Axial Vector Engine Technology in India for non automotive uses including, but not limited to, electrical generators, tractor engines, excavators, loaders, and fork lifts truck engines along with engines for farm and forestry applications. As part of the due diligence Kirloskar will be considering the manufacture of Axial Vector™ Engines under license from Axial. It is expected that the technical due diligence will be completed by January 2006.
Royalty fees for engines are to be based on a per horsepower fee structure while royalty payments on electrical power generation stations that resell power shall be based on a per kW hour of electrical power sold.
'One of the primary ways we expect to exploit our patented technology and intellectual capital is through the sale of Exclusive License to Market Leading firms thus allowing the rapid introduction of our unique engine through firms that have existing access to markets and have the necessary experience and infrastructure to do a great job in sales of which we receive a royalty.' said Dr. Raymond Brouzes, Axial Vector's President. 'Not only is Kirloskar a world class engineering firm and engine manufacturer, but with over a 50% share of the Indian power generation segment Kirloskar leads the world's major players generator manufacturers such as Perkins, Cummins, Iveco, and Caterpillar by a substantial margin in India. We see Kirloskar as an engine of growth in the India Sub-Continent. The fruition of the first non- military license will allow us to forecast significant royalty income in 2006'.
About Axial Vector™ Engine Corporation
Axial Vector Engine Corporation is a publicly traded company (OTC Bulletin Board: AXVC) that owns, develops and licenses proprietary intellectual property regarding unique internal combustion engine technologies.
We believe the fundamental economic conditions that ruled since the development of the internal combustion engine over 100 years ago no longer exist. In today's world of high fuel and oil costs, energy efficiency, weight, and space are the only things that count.
We are developing and commercializing an exciting and potentially revolutionary internal combustion engine that converts combustion energy into rotational energy without the use of a traditional crankshaft. The engine is lighter, smaller, and has less moving parts than a traditional engine. Our engine is able to run on multiple fuels, while making more power at lower RPMs than traditional engines. These innovative engines will be suitable replacements for existing engines in a number of industrial categories.
Key entry markets for the Axial Vector™ Engine include a number of specific military and industrial applications. Additionally, we are developing a family of electric power generators (GENSETS) incorporating our unique Axial Vector™ technology. The GENSETS will consume less fuel per unit of electrical power output and are considerably smaller than any known internal combustion engine generators.
About Kirloskar Oil Engines Ltd
Kirloskar is a 116-year-old multi-product, multi-location Engineering Conglomerate with annual sales exceeding US$600 million. They are the leader of the Indian power generation sector.
With annual volume exceeding 200,000 engines, Kirloskar is India's largest manufacturer of diesel engines, both air and liquid cooled, covering a power range of 3hp to 11,000hp. These engines power 80 different applications in nine distinct segments such as: agriculture, power generation, construction, material handling, earth moving, mining, offshore, fluid handling, agro industrial and defense automotive retrofits.
For further information; Dr. Raymond Brouzes, President Axial Vector™ Engine Corporation 503-471-1348 info@axialvectorengine.com http://www.axialvectorengine.com
Forward-Looking Statements
This press release may be deemed to contain forward-looking information. Any forward-looking statements are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements, including statements as to industry trends, future economic performance, anticipated profitability, anticipated revenues and expenses, and products or service line growth, may be significantly and materially impacted by certain risks and uncertainties, including, but not limited to, failure to meet operating objectives or to execute the operating plan, competition, and other economic factors. Additional risks and uncertainties are described in the Company's public filings with the Securities and Exchange Commission.
SOURCE Axial Vector Engine Corporation
Source: PR Newswire (September 12, 2005 - 9:01 AM EDT)
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