RONKONKOMA, N.Y., April 1, 2004 (PRIMEZONE) -- The following is a joint announcement by Aero Marine Engine, Inc. (OTCBB:ARMR) and Trans Max Technologies, Inc. (OTCBB:TMXT):
Aero Marine Engine, Inc. Chairman and President Richard "Richie" Powers has provided the following open letter to all shareholders and the investment community outlining the Company's plan of action for the coming year. Aero Marine is a developmental Company engaged in the automotive and marine engine industry and has several cutting edge products that were recently introduced at the Miami International Boat Show.
As part of the collaboration between Aero Marine Engine, Inc. & Perma-Tune Electronics, Inc., a wholly owned subsidiary of Trans Max Technologies, Inc., Trans Max Technologies, Inc., as announced in a press release (August 28, 2003), has extended a $1,500,000.00 credit line to Aero Marine for design and engineering services to support the development and manufacture of its revolutionary Axial Vector Engine. Perma-Tune's plasma ignition technology is extremely advanced and complements the new Axial Vector Motor very well, maximizing the engine's performance by boosting its combustion efficiency. This results in more torque and horsepower, improved fuel economy, the ability to use alternative fuels and lowered emissions.
Perma-Tune's executive and scientific team has seamlessly integrated its efforts with Aero Marine's new executives in a unified, synergistic and collaborative manner to fine-tune the Axial Vector Engine and bring it to market as quickly as possible. Aero Marine's new CEO, Richie Powers, and Executive VP of Marketing and Sales, Alan Cohen together bring decades of experience and industry connections to the team. This highly professional joint effort is being fully supported by Trans Max through the dedication of engineering personnel, manpower and financial backing to ensure its complete success.
It has become evident that our association with Trans Max has and will be extremely important to our Company's growth. To date, Trans Max has agreed to construct a state of the art facility at their headquarters in Ronkonkoma, NY. This facility will encompass all phases of research and development, testing and analysis for the Axial Vector Engine. This facility will have the latest technology in dynamometers and computerized testing. Additional space has been provided and equipment has been purchased by Trans Max to facilitate the initial manufacturing of the Axial Vector Engine.
It is estimated that this facility will cost in excess of $750,000. It is projected that the final engineering and design, testing and initial manufacturing, advertising, trade shows and general and administrative expenses will cost in excess of $8,000,000. Our management team is exploring the options to finance this task. Trans Max has been entirely supportive of the plans and is working diligently to assist us in our endeavor to reach the necessary financing needs. As of this date, it appears to the management of both Companies that a more formal association is to our mutual best interest.
Peter Mergenthaler, Chairman and CEO of Trans Max states: "I believe in the Aero Marine project and since there is such synergies, it may be in our best interest to either have Trans Max acquire a substantial interest in Aero Marine or to consolidate both Companies. Either scenario is feasible. Consolidation would appear to be the most beneficial. Just to maintain two public entities requires a substantial cost. We could potentially reduce our overhead per year by approximately $1,000,000 on a going forward basis. Capital funding might be easier to acquire if we were consolidated. We project that we will have the final, tested Axial Vector Engine ready for initial deliveries by the end of the first quarter 2005. Final re-engineering and upgrading of components including Perma Tune's "state of the art" engine ignition and fuel management system is proceeding to the point that longevity testing can begin in the near future.
"Aero Marine has been notified by the editors of Power Boat Magazine that the Axial Vector Engine will have a feature article in the July issue of the publication. When the article is published we will have the right to include it on our web page. ESPN's Speed Week TV will have a story featuring the Axial Vector Engine. Richie Powers and Alan Cohen will be interviewed. The story will be aired numerous times over the 4th of July weekend.
"We believe in our products and have taken the position that they require either patent or intellectual property protection to secure our long term rights to these wonderful products. To further this goal we are pleased to announce that we have retained the services of Michelle Kallenbach Esq. as our counsel for intellectual property and patents."
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. In particular, when used in the preceding discussion, the words "believes," "expects," "intends," "will," "anticipated," or "may," and similar conditional expressions are intended to identify forward-looking statements within the meaning of the Act and are subject to the safe harbor created by the Act. Except for historical information, all of the statements, expectations and assumptions contained in the foregoing are forward-looking statements that involve a number of risks and uncertainties. It is possible that the assumptions made by management are not necessarily the most likely and may not materialize. In addition, other important factors that could cause actual results to differ materially include the following: business conditions and the amount of growth in the company's industry and general economy; competitive factors; ability to attract and retain personnel; the price of the Company's stock; and the risk factors set forth from time to time in the Company's SEC reports, including but not limited to its annual report on Form 10-KSB; its quarterly reports on Forms 10-QSB; and any reports on Form 8-K. Neither Aero Marine Engine Inc. nor Trans Max Technologies Inc take any obligation to update or correct forward-looking statements and also they do not take any obligation to update or correct information prepared by third parties which is not paid for by the Company.