HONG KONG, Sept. 2, 2008 (GLOBE NEWSWIRE) -- Highway Holdings Limited (Nasdaq:HIHO) today announced an expansion of its existing original equipment manufacturing business from Tridonic.ATCO, with six new tooling orders to produce electronic ballast casings utilized in fluorescent lighting products. Terms were not disclosed.
"The new order from Tridonic's United Kingdom division expands Highway Holdings' current OEM relationship with this company's operations in China and Austria -- representing an aggregate annual potential production value of approximately $2.0 million from existing and new business," said Roland Kohl, president and chief executive officer of Highway Holdings.
Tridonic.ATCO, based in Dornbirn, Austria, is one of the leading manufacturers and suppliers of lighting control equipment in the world with strategic manufacturing operations located on three continents.
Kohl also said the company has received new tooling orders from two other leading European lighting manufacturers, one of whom is a current customer and the other a new OEM relationship. He indicated that all of these new tooling orders should lead to additional business which could potentially generate combined annual sales of more than $20 million.
Separately, the company said it has signed a three-year extension of the company's lease of 450,000 square feet for its headquarters and production facilities located in Long Hua, China. The lease, at which more than 70 percent of the company's operations are conducted, was scheduled to expire in February 2009.
About Highway Holdings
Highway Holdings produces a wide variety of high-quality products for blue chip original equipment manufacturers -- from simple parts and components to sub-assemblies. It also manufactures finished products, such as light fixtures, LED lights, radio chimes and other electronic products. Highway Holdings is headquartered in Hong Kong and operates four manufacturing facilities in the People's Republic of China.
Except for the historical information contained herein, the matters discussed in this press release are forward-looking statements which involve risks and uncertainties, including but not limited to economic, competitive, governmental, political and technological factors affecting the company's revenues, operations, markets, products and prices, and other factors discussed in the company's various filings with the Securities and Exchange Commission, including without limitation, the company's annual reports on Form 20-F.