Another news report:
Tuesday December 30, 2:12 pm Eastern Time
Company Press Release
Penn Octane Corporation Announces Order for CNG
Powered Vehicles
REDWOOD CITY, Calif.--(BUSINESS WIRE)--Dec. 30, 1997--J.B. Richter, President and
CEO of Penn Octane Corporation (NASDAQ SmallCap:POCC - news) today announced that
the Company has received orders to provide 450 compressed natural gas (CNG) powered
vehicles, subject to acceptable financing terms, from the Union De Credito Industrial, Comercial
Y De Servicios Del Estado De Mexico, S.A. De C.V., the credit union for one of the largest
public transportation companies in the State of Mexico.
''The demand for CNG powered vehicles in Mexico stems from the need to replace older fleets
which are inefficient, unsafe, expensive to operate and very pollutant.'' Furthermore Richter
commented, ''CNG powered vehicles have been proven to lower annual maintenance and overall
operating costs and increase the vehicles engine life by as much as 50%.''
The Company intends to provide these CNG powered vehicles through a previously announced
private placement for a minimum of $30 million, which is being underwritten by Rodman and
Renshaw, Inc. of New York City. The placement is expected to be completed in January 1998.
Penn Octane is a leading supplier of liquefied petroleum gas to Mexico and propylene to the
petrochemical industry in Texas. Penn Octane operates a 132-mile, six-inch pipeline from a
pipeline in Kleberg County, Texas to its terminal in Brownsville, Texas, which acts as a
trans-shipment point for delivery to Mexico. In addition, the Company owns and operates
PennWilson CNG, Inc., located in Santa Fe Springs, CA, a leader in compressed natural gas
station design, engineering, manufacturing and safety. |
