EL CAJON, Calif.--(BUSINESS WIRE)--June 22, 2000--Composite Automobile Research Ltd. (OTCBB:CARH)(POH:Frankfurt), through it's wholly owned subsidiary World Transport Authority Inc. (WTA) is pleased to announce the following update regarding the purchase of the Master License for the country of Nigeria. Please note the company news release of May 25, 2000.
Executives from SIGWA Motors Ltd. have concluded their period of due diligence. As of today's date, WTA is in receipt of a cash deposit regarding this transaction. SIGWA Motors Ltd., and its affiliates have agreed to purchase the Master and initial Site Licenses for the sum of $3,000,000 USD, this amount to be paid over time as factories are established.
Initially, SIGWA will purchase two (2) factories for a total of $744,000 USD. Of this, an amount will be credited to the purchase of the Master License. Subsequent payments towards the purchase of the Master License will be realized to WTA in a similar manner as determined in the final license agreement.
Both WTA and SIGWA are presently completing final documentation for the close of this transaction. The expected date of completion is June 30, 2000. WTA will, when prudent, release additional details regarding this transaction.
WTA is also pleased to announce that all regulatory issues regarding the company's name change the World Transport Authority Inc., as well as the scheduled 4 for 1 stock split, are proceeding as planned. All previous announcements regarding these matters are confirmed. Composite Automobile Research Ltd. and World Transport Authority Inc. serve the emerging world's transportation needs through in country manufacturing facilities, utilizing local semi-skilled labor to produce the WorldStar line of utility vehicles.
This press release contains forward-looking statements within the definition of Section 27A of the Securities Act of 1933, as amended and such section 21E of the Securities Act of 1934, amended. These forward-looking statements should not be used to make an investment decision. Please refer to the WTA Web site WWW.WTAWorldstar.com and other sources for more detailed information. Investor Relations is at 619/387-8888. --30--ts/sd*
CONTACT: World Transport Authority Inc.
Lyle A. Wardrop, 619/444-7254, Fax 619/444-9026
Renmark Financial Communications
Henri Perron, 514/939-3989, Fax 514/939-3717 info@renmarkfinancial.com renmarkfinancial.com
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