BAT Prepares for Shareholder Meeting with
Discussion of Company Mission and Operations
As BAT International begins what will be its most exciting business year at the end of the millennium, the company is initiating several programs to further enhance communication with its investors and onlookers. Toward this end, BAT has identified a number of business concepts that its shareholders have either directly or indirectly asked about. The following is a brief discussion of those concepts, including BAT's mission and objectives for 1999.
BAT is organized as a "holding company", not as an "operating company". This distinction is very important. A "holding company" derives its net worth from the stock equity that it holds in its subsidiary companies including dividends from equity holdings and royalties from licensing agreements. On the other hand, an "operating company" derives its net worth from the equity that it obtains from sale of its own products and services. Thus, as a holding company, BAT's value increases as the value of its subsidiaries increases. BAT provides the startup technologies and in some instances the startup funding along with the overall business coordination to launch high technology companies.
From the outset, our mission has been to develop and bring to market many advanced technologies that help improve the world's physical and social environments. As BAT enters the 21st century, it continues to use its international name to attract talented engineers, corporate managers and forward-looking companies to partner with BAT in developing innovative solutions to environmental problems.
To achieve its mission, BAT continues to adhere to the basic operating methodology that it has used since its inception. This methodology is based upon:
· Evaluating new technology proposals that conform with BAT's environmental mission.
· Contracting with technology partners to form a solid business relationship.
· Assisting in the startup business funding in many cases.
· Providing business management consulting as needed.
· Assisting in research and development programs.
· Providing resources for marketing of new technologies after R&D is completed.
· Directing initial marketing and distribution efforts.
· Assisting new business entity in becoming self-reliant, independent and profitable for BAT.
For example, in 1998 BAT facilitated the formation of two new companies -- SuperBAT, Inc. and Southern States Power Company. Both of these companies have received assistance and direction from BAT, although each has had a different growth rate and development.
Today, SuperBAT is primarily concerned with marketing its lubricants and expanding its business operations. To assist SuperBAT in these efforts, BAT International invested $5,000,000 of its stock equity holdings in several companies in order to purchase $5,000,000 in national TV advertising for SuperBAT to market its lubricant products. Super BAT could not have launched this important marketing program without a substantial television advertising campaign. That was essential for distributing its products into the retail channel, including major chain stores. In return for the BAT investment in SuperBAT, BAT continues to have a substantial investment in its SuperBAT subsidiary, retaining a significant ownership position of approximately 90%. SuperBAT represents one of the few situations wherein BAT provided substantial financial assistance to one of its subsidiaries.
Unlike SuperBAT Inc., Southern States Power Company (SSPC) received no financial support from BAT International. SSPC raised its own funding, attracted professional industry management, and negotiated several joint ventures in the areas of automobile production, fuel cell technology research and development, and electric power generation and distribution. SSPC has also become a publicly traded company and was approved by NASD to trade publicly in February of this year.
BAT's relationship with Southern States Power Company is completely independent, with BAT holding a stock equity position. BAT's contribution to SSPC was a license for the use of BAT's pulse charge technology in the power generation industry. However, BAT does support SSPC with technical and marketing assistance as required. Today (2-23,99) BAT owns 4,100,000 shares of SSPC stock (total issued stock in SSPC is approximately 10,200,000 shares) with SSPC recently trading in the $4.50 to $5.25 range. This amounts to BAT holding approximately $20,000,000 in SPC shares. (BAT's accountants will probably carry this at a reduced rate on BAT's balance sheet for the first quarter 1999).
Both SuperBAT, Inc. and Southern States Power Company are examples of BAT's ability to take environmentally important technologies and turn them into promising business entities. In addition to these companies, BAT's other active subsidiaries are busy finishing research and development, building manufacturing facilities, preparing products for manufacturing, and implementing national and international marketing campaigns. For other subsidiary information, please read BAT's Technology for the 21st Century at baat.com on BAT's web site, as well as subsidiary web sites including pulsecharge.com, superbat.com, sspowerco.com, and electrobike.com.
The information provided addresses the concerns of investors and BAT onlookers alike. It is provided only at BAT's official corporate web site (http://www.baat.com) and is the property of BAT International. As many have observed, a lot has been said about BAT in both national and international media and much more will be in the future. With the explosion of the Internet and BAT's technological and business successes, the amount of both accurate and inaccurate information that will be available is increasing. For this reason, BAT strongly recommends that both investors and onlookers refer to BAT's corporate web site for the most up-to-date and reliable information about BAT's technologies, products, plans and related information.
Best regards,
Billwason |
