LOS ANGELES, Feb. 2, 2005 (PRIMEZONE) -- Victory Capital Holdings Corporation (OTCBB:VTYC) announced today that it has signed a Letter of Intent for Merger and Acquisition with Magnesium Automotive Group (MAG). The financial specifics of the agreement will be detailed in the Merger and Acquisition Agreement, which is expected to be completed within the next 60 days.
Founded nearly a decade ago, MAG has been privately funded by Mr. Earle Canavan and a small group of investors. Mr. Canavan has spent his entire life in NASCAR and the Hot Rod Industry developing and making lighter, stronger parts, producing lighter faster cars. Over the past five years, MAG has been developing and testing new magnesium alloys and validating those results with one of the Big-3 U.S. automobile manufacturers. His work and success has been recognized by the issuance of thousands of hours in consulting contracts and purchase orders towards production. In addition to the validation of MAG's revolutionary breakthrough in the treatment and stabilization of magnesium for the automotive industry, MAG's research and development has been recognized and promoted through the issuance of Grants from the offices of the Department of Energy (DOE).
MAG has developed an exclusive patent pending stabilization and curing process giving them the only known and documented ability to roll and stamp magnesium. Additionally, a study documented by the Oak Ridge National Laboratory, which is managed by the University of Tennesse-Battelle for the Department of Energy, concluded that when tested against other known Mg alloys, "Canavan's Mg alloy has superior tensile creep properties." MAG's magnesium alloy is the only alloy in the world suitable for structural members and skins.
Magnesium is the lightest of all commonly used metals, being approximately 35% lighter than aluminum and pound-for-pound as strong as steel. It has the best strength-to-weight ratio of any of the commonly used structural metals and its use in automotive applications is poised to increase.
MAG's goal is to position itself to be the first to market and mass produce a revolutionary new magnesium alloy for the multi-billion dollar land and air transportation industries.
"My dream has always been to have the ability to partner with like-minded people and build a great company that will one day rival the largest organizations in the world," stated Mr. Canavan, President of Magnesium Automotive Group.
"This is an extremely valuable relationship for our companies. I am very excited about the technology and opportunities that Magnesium Automotive Group affords us on our path forward," stated Jon Fullenkamp, Chairman and CEO of Victory Capital Holdings Corporation.
Upon signing of the Merger and Acquisition Agreement, MAG shall issue a statement of goals and objectives for their next 12 months of operation. Additional information will be available on the new website to be launched later this week.
Victory Capital Holdings Corporation (VTYC), organized in Nevada, is a publicly traded company. The Company is designed to leverage the assets of existing, proven technology and to infuse those assets with marketing, management and financial support to become the recognized leader in its space. (http://www.vtyc.com).
Certain statements contained herein are "forward-looking" statements (as such term is defined in the Private Securities Litigation Reform Act of 1995). Because such statements include risks and uncertainties, actual results may differ materially from those expressed or implied by such forward-looking statements. Factors that could cause actual results to differ materially from those expressed or implied by such forward-looking statements include, but are not limited to, those discussed in filings made by the Company with the Securities and Exchange Commission.