WTAI - **NEWS** $900mil contract
wtaworldstar.com
EL CAJON, CA, Sep 13, 2000 (INTERNET WIRE via COMTEX) -- World Transport
Authority, Inc. (OTC BB: WTAI) (POH: Frankfurt Stock exchange). World Transport
Authority Inc. (WTA) is pleased to announce that it has entered into a
definitive Master License agreement with WorldStar Auto Utility, Inc. (WSA) of
the Peoples Republic of China. Lyle Wardrop, President and CEO signed the
agreement representing WTA and Dr. Jerry He on behalf of WorldStar Auto Utility,
Inc. WSA is representing several major Chinese investment groups and state owned
companies. It has the full support of a number of government authorities
including the state Ethnic Affairs Commission of the Peoples Republic of China,
China National Automotive Industry Corporation, Industrial and Transportation
Divisions of the Chinese Military Forces and the Agricultural Mechanical
Department of Agricultural Ministry as well as several Beijing Urban City
Governments. Master License agreement terms include a licensing fee of US $40
Million Dollars with installment payments to WTA as factories are built and
production of the WorldStar vehicles commences.
Terms of the agreement call for 358 factories to be built over a three-year
period. Each factory will initially be set up to build one WorldStar vehicle per
day with the capacity to increase production to three vehicles per day upon
completion of on site training.
The 358 factories producing one WorldStar(TM) vehicle per day will use a
straight-line distribution of start up over three years. Based on this rollout,
WTA estimates that gross revenues from the sales of factories, and components to
build the vehicles will exceed US$900 Million Dollars. It is projected that
approximately 175,000 vehicles will be produced, again based on production of
one car per day per factory.
WTA's new corporate office in Beijing, China will manage the China project with
assistance from the WTA Operations Office in Manila, Philippines. The company's
head office in El Cajon, California will provide logistical support. WTA
recently announced that the factory-to-build-factories plant at the former Clark
Air Force base in the Philippines was expanded. This expansion is necessary to
service the China Project.
WTA Company President and CEO Lyle Wardrop is quoted as saying: "We are
obviously very excited that operations are about to commence in China. WTA has
invested more than four years in R&D and just recently moved into the production
and marketing phase of our business plan. We are pleased to enter our largest
target market this early in the plan. We owe a tremendous debt of gratitude to
WTA company director David Yue for his diligent efforts in making this deal a
reality. Through his vast business and political connections in China, WTA
executed the agreement in a minimal amount of time. This project, in my opinion
will have a significant impact for our company and will be extremely beneficial
for our shareholders."
Upon the signing of the agreement WSA company representative Jerry He commented:
"Of all the vehicles made in the world today, the WorldStar(TM) vehicle and
unique manufacturing system is very well suited for the mainstream Chinese fleet
and individual consumer market. The vehicle will be entirely manufactured and
assembled in numerous locations throughout China, providing automotive industry
jobs, where the vehicles are actually produced."
World Transport Authority, Inc. serves the emerging world's transportation needs
through in country manufacturing facilities, utilizing local semi-skilled labor
to produce the WorldStar(TM) 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.
CONTACT: Lyle A. Wardrop
President & CEO
World Transport Authority Inc.
619-444-7254
Renmark Financial Communications
514-939-3989
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