Bolder Technologies Announces a Strategic Relationship with GP Batteries
GOLDEN, Colo., Jan. 12 /PRNewswire/ -- Bolder Technologies Corporation (Nasdaq: BOLD) 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 www.gpbatteries.com.sg and 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 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.
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