MJXC Majestic Establishes Primary SAFE-T-BAR Manufacturing Source in Canada
SAN DIEGO, Oct. 3 /PRNewswire/ -- Majestic SAFE-T-PRODUCTS, Ltd., a wholly-owned subsidiary of The Majestic Companies, Ltd., (OTC Bulletin Board: MJXC - news) announced today that its has reached an agreement in principle with ARS Networks, Inc., (OTC Bulletin Board: ARSN - news) to establish a manufacturing line for its proprietary SAFE-T-BAR(TM) school bus restraint in Canada. ARS Networks, Incorporated is a publicly traded corporation headquartered in Champlain, NY that designs, develops, and manufactures proprietary railway signaling and control systems. It is contemplated that manufacturing and assembly of the SAFE-T-BAR will take place at T & T Diesel Power Limited, a wholly owned subsidiary of ARS Networks, Incorporated located in Georgetown, Ontario, which manufactures a line of custom diesel power generating equipment for a wide range of industries.
Majestic currently has a manufacturing agreement in place for the SAFE-T-BAR with the Golden Legion Automotive Group, an equipment-manufacturing consortium based in Taipei, Taiwan. Management plans to keep this manufacturing arrangement in place to act as a second source for the product.
The SAFE-T-BAR is a patented and innovative school bus passenger restraint system that closely approximates the type of restraint system most commonly found on amusement park rides. The heavily padded U-shaped bar is designed to lock in place during a sudden stop, collision or bus rollover, thereby controlling and restraining the passenger within the padded seating area. The SAFE-T-BAR has been designed as a passive restraint and requires little or no participation on the part of the occupant to engage. This passive design ensures a compliance rate at, or near 100 percent. In contrast, standard seat belts, which have seen limited use on school buses to date, have compliance rates reported to be less than 15 percent. With over 450,000 school buses in operation in the US, the total potential market for the SAFE-T-BAR exceeds $2 billion.
Mr. Francis Zubrowski, Chairman and CEO for The Majestic Companies, Ltd. stated, ``We are very pleased with our new manufacturing partner. Majestic has been evaluating additional sources for some time now, and the benefits of making the SAFE-T-BAR in Canada are substantial. When you consider the fact that we can dramatically cut lead times, reduce minimum run lots, and maintain much tighter production controls by going to Canada, this collaboration makes great economic as well as logistical sense.
Syd Harland, President and CEO of ARS Networks commented, ``The current economics of manufacturing products in Canada for export to the United States are enhanced through the availability of credit lines and insurance supported by the Export Development Corporation to assist foreign purchasers of Canadian goods and services. This fact will be a key factor in helping Majestic in economically funding the future production of SAFE-T-BARs as orders start coming in on this valuable new safety product. Here at ARS Networks' T & T Division, we have the ability to rapidly gear-up production capacity to meet future SAFE-T-BAR orders, and we look forward to being a part of this worthwhile product that protects school children on their ride to and from school.''
About THE MAJESTIC COMPANIES, LTD.
The Majestic Companies, Ltd. is a holding company that manufactures and markets safety related products, including the SAFE-T-BAR(TM), an innovative school bus occupant restraint system, and the SAFE-T-GARD, an innovative wheel guard/deflector shield for school buses through its wholly-owned subsidiary Majestic SAFE-T-PRODUCTS, Ltd. The Company also manufactures portable modular classrooms and commercial structures through its wholly-owned subsidiary Majestic Modular Buildings, Ltd, located in Modesto, California.
Additional information can be obtained on the Company's websites at www.themcl.com and www.safe-t-bar.com.
Note: Certain statements in this news release may contain forward-looking information within the meaning of Rule 175 under the Securities Act of 1933 and Rule 3b-6 under the Securities Exchange Act of 1934, and are subject to the safe harbor created by those rules. All statements, other than statements of fact, included in this release, including, without limitation, statements regarding potential future plans and objectives of the company, are forward- looking statements that involve risks and uncertainties. There can be no assurance that such statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements. Majestic Modular Buildings, Ltd. and Majestic SAFE-T-PRODUCTS, Ltd., are wholly-owned subsidiaries of The Majestic Companies, Ltd.
For further information, please contact Clayton Chase, Investor Relations, 877-260-5426, info@themcl.com.
SOURCE: Majestic SAFE-T-PRODUCTS, Ltd. |