Aero Marine Engine, Inc. & Trans Max Technologies, Inc. Investor Update
RONKONKOMA, N.Y., Apr 2, 2004 (BUSINESS WIRE) -- The following is a joint announcement
by Aero Marine Engine, Inc. (OTCBB: ARMR) and Trans Max Technologies, Inc. (OTCBB: TMXT):
Aero Marine Engine, Inc. Chairman and President Richard "Richie" Powers has
provided the following open letter to all shareholders and the investment
community outlining the Company's plan of action for the coming year. Aero
Marine is a developmental Company engaged in the automotive and marine engine
industry and has several cutting edge products that were recently introduced at
the Miami International Boat Show.
As part of the collaboration between Aero Marine Engine, Inc. & Perma-Tune
Electronics, Inc., a wholly owned subsidiary of Trans Max Technologies, Inc.,
Trans Max Technologies, Inc., as announced in a press release (August 28, 2003),
has extended a $1,500,000.00 credit line to Aero Marine for design and
engineering services to support the development and manufacture of its
revolutionary Axial Vector Engine. Perma-Tune's plasma ignition technology is
extremely advanced and complements the new Axial Vector Motor very well,
maximizing the engine's performance by boosting its combustion efficiency. This
results in more torque and horsepower, improved fuel economy, the ability to use
alternative fuels and lowered emissions.
Perma-Tune's executive and scientific team has seamlessly integrated its efforts
with Aero Marine's new executives in a unified, synergistic and collaborative
manner to fine-tune the Axial Vector Engine and bring it to market as quickly as
possible. Aero Marine's new CEO, Richie Powers, and Executive VP of Marketing
and Sales, Alan Cohen together bring decades of experience and industry
connections to the team. This highly professional joint effort is being fully
supported by Trans Max through the dedication of engineering personnel, manpower
and financial backing to ensure its complete success.
It has become evident that our association with Trans Max has and will be
extremely important to our Company's growth. To date, Trans Max has agreed to
construct a state of the art facility at their headquarters in Ronkonkoma, NY.
This facility will encompass all phases of research and development, testing and
analysis for the Axial Vector Engine. This facility will have the latest
technology in dynamometers and computerized testing. Additional space has been
provided and equipment has been purchased by Trans Max to facilitate the initial
manufacturing of the Axial Vector Engine.
It is estimated that this facility will cost in excess of $750,000. It is
projected that the final engineering and design, testing and initial
manufacturing, advertising, trade shows and general and administrative expenses
will cost in excess of $8,000,000. Our management team is exploring the options
to finance this task. Trans Max has been entirely supportive of the plans and is
working diligently to assist us in our endeavor to reach the necessary financing
needs. As of this date, it appears to the management of both Companies that a
more formal association is to our mutual best interest.
Peter Mergenthaler Chairman and CEO of Trans Max states: "I believe in the Aero
Marine project and since there is such synergies it may be in our best interest
to either have Trans Max acquire a substantial interest in Aero Marine or to
consolidate both Companies. Either scenario is feasible. Consolidation would
appear to be the most beneficial. Just to maintain two public entities requires
a substantial cost. We could potentially reduce our overhead per year by
approximately $1,000,000 on a going forward basis. Capital funding might be
easier to acquire if we were consolidated. We project that we will have the
final, tested Axial Vector Engine ready for initial deliveries by the end of the
first quarter 2005. Final re-engineering and upgrading of components including
Perma Tune's "state of the art" engine ignition and fuel management system is
proceeding to the point that longevity testing can begin in the near future."
Aero Marine has been notified by the editors of Power Boat Magazine that the
Axial Vector Engine will have a feature article in the July issue of the
publication. When the article is published we will have the right to include it
on our web page. ESPN's Speed Week TV will have a story featuring the Axial
Vector Engine. Richie Powers and Alan Cohen will be interviewed. The story will
be aired numerous times over the 4th of July weekend.
We believe in our products and have taken the position that they require either
patent or intellectual property protection to secure our long term rights to
these wonderful products. To further this goal we are pleased to announce that
we have retained the services of Michelle Kallenbach Esq. as our counsel for
intellectual property and patents.
SOURCE: Aero Marine Engine, Inc. and Trans Max Technologies, Inc.
CONTACT:
Aero Marine Engine, Inc.
Richie Powers, President, 631-285-7101
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