Is it me, or are these press releases sounding familiar to the ones that got us into this mess. I pose this question to you Barkley because I remember you from the initial VIKG catastrophe.
>>>Company Press Release
Viking Resources Announces Initial 49.9% Acquisition
of Executive Jetport of New Jersey
TAMPA, Fla.--(BUSINESS WIRE)--Feb. 23, 1999--Viking Resources International, Inc. (OTC BB:VIKG - news) Viking
Resources announced today that it has signed and closed on a definitive stock purchase agreement with Executive JetPort of NJ,
Inc. (EJP). Located at New Jersey's Trenton-Mercer Airport, EJP (or ''the JetPort'') holds a 30-year lease for 27 acres of land
and buildings providing Fixed Base Operation (FBO) services to the commercial and corporate aviation industry. A former US
Naval jet propulsion base, the property is on the site of the former General Motors factory where Grumman TBM torpedo
bombers were built under license during World War II. EJP was the successful bidder for the property, which includes two
ten-year extensions on the lease. The land and facilities are estimated to be valued at a replacement cost of over $20.0M.
Under the terms of the agreement, Viking has structured a stock purchase of 49.9% of EJP with an option to increase its
ownership to 80.1% within 90 days. The initial purchase requires Viking to pay $500,000 to EJP in a combination of cash and a
promissory note due in 45 days. Viking has a 90-day option to purchase 30.2% additional stock ownership for cash and restricted
Viking shares totaling $300,000 as well as providing a one year Letter of Credit of $350,000 for additional working capital, as and
if needed.
With Viking's 80.1% portion of anticipated first year revenue conservatively estimated at $10,000,000, the first 12-month net profit
is projected at $3,000,000. The EJP profit centers will include fueling with gross margins of between $.60 to $1.00 per gallon on
300,00 to 400,000 per month, aircraft storage, de-icing, maintenance and repair, avionics, aircraft sales, charter services and 15,000
SF of office space at triple net of $17.00 per SF. EJP is expected to generate revenue upwards of $36,000,000 annually by its fifth
year. Under the agreement, EJP's President/CEO, Thomas E. Patterson, will have a seat on the Viking Board of Directors and
Viking will have equal representation with EJP on its Board of Directors.
According to data from a 1996 study completed by the National Business Aircraft Association, 94% of the Forbes ''Top 50''
corporations operated general aviation aircraft at that time. Since the New Jersey aviation market approaches $36 Billion annually,
EJP offers the opportunity for an attractive alternative to the crowded airport conditions in the tri-state area. Situated midway
between Philadelphia and New York City, EJP owns the largest FBO fuel farm in the United States with eighteen 25,000-gallon
fuel tanks. EJP has entered into a contract with Exxon Oil Company to supply jet fuel to the tank farm and Exxon has also provide
three fuel trucks -two 3,000 gallon and one 1,000 gallon to EJP for use in fueling aircraft. EJP has contracts to provide ground
services, fueling and office leasing to EastWind Airlines of Greensboro, NC with service to Boston CT, Trenton NJ, Washington
D.C., Greensboro NC, Orlando and Fort Lauderdale; and with SkyTrek International Airlines. The JetPort is currently in
negotiations with New England-based Business Express Airlines, a commuter service feeding into Delta, American and Northwest
Airlines; with Southwest Airlines; and with Houston-based Shuttle America Airlines to provide ground service, fueling and possible
leasing of office space.
In addition to fueling services, the JetPort will provide service, maintenance and storage facilities to its customers, including the
installation of aircraft engine ''hush kits'' required by federal noise pollution regulations with time-limited mandates. The net
revenue estimated for these installations is approximately $350,000 per aircraft at the rate of four installations per month. The
JetPort has plans in place to build two additional 100,000 square foot hangars dedicated to the service and maintenance of jet
aircraft. These new hangars will be entirely subsidized by the airlines whose equipment will be maintained. The maintenance
center at EJP will be FAR Part 145 licensed and certified in FAR Part 121 Commercial Aircraft Operations. Federal Aviation
Regulations or ''FAR'' are the governing rules of the Federal Aviation Authority in licensing FBOs.
Currently housed in a 100,000 square foot office/hangar facility, EJP will soon complete the initial renovation in preparation to full
operation of the FBO. On EJP's drawing boards within 24 months, is a major renovation of the office and terminal building which
will include the JetPort's corporate headquarters, a customer/passenger terminal consisting of a three-story open atrium with glass
elevator and fourth floor enclosed observation deck with outside access as well as a fifth floor conference center with a
panoramic view of the airport facility. This new complex with 24-hour access will provide office space for aviation-related
businesses and will include state- of-the-art pilots' lounge and quarters, briefing rooms, weather rooms, an exercise center with
sauna, a casual-dining restaurant, duty-free and customs services allowing for international travel, and aircraft storage. The ramp
area will cover over 650,000 square feet of ground with parking for over 50 aircraft. Through FAR Part 135, EJP plans to add
charter services, aircraft sales, and avionics sales and service.
According to Thomas E. Patterson, President/CEO of Executive JetPort of NJ, Inc., ''The use of business aircraft by smaller
companies has escalated as various chartering, leasing, time-sharing, interchange agreements, partnerships and management
contracts have emerged. It is a rare opportunity that acreage, buildings and location form such a perfect setting for the
development of an FBO. With a minimum twenty-year growth rate anticipated for this type of business, we believe we are
uniquely positioned to capture multiple streams of revenue related to the aviation industry. We are excited about our involvement
with Viking and look forward to a long and successful relationship.'' Viking's President/CEO, Dan O. Erickson stated, ''Viking will
benefit considerably from the breadth of business and positive cashflow that this ownership in EJP will provide through this solid,
high-profile and exciting business. EJP and Viking have the shared vision of building a strong national Aviation Group through
aggressive development and acquisition of other FBOs with excellent potential for growth and profitability. EJP is just the
beginning of this plan.''
Viking Resources International, Inc. is a diversified holding company with a strategy of expansion through acquisition and
development in five industry Groups; Aviation, Environmental, Manufacturing, Services/Technology and Real Estate.
President/CEO/Chrmn, Dan O. Erickson, issued a statement of clarification as well, concerning the status of former
Chairman/CEO, Gerald L. Kuhr. In his statement, Mr. Erickson, referred to the press release which was issued on August 25,
1998 in stating that Mr. Kuhr is no longer involved in Viking Resources in any way. Viking has cancelled all of Mr. Kuhr's
restricted common stock by Board of Director's Resolution which is a matter of record with its stock transfer agent.
Except for any historical information presented, the matters discussed in this release are forward looking statements and are
subject to risks and uncertainties that could cause actual results to differ materially.<<<<<
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