Optima Batteries in a long-term agreement with GNB Technologiesnet turnover to increase by 25-30 % within 1 year
OPTIMA BATTERIES IN A LONG-TERM AGREEMENT WITH GNB TECHNOLOGIESNET TURNOVER TO INCREASE BY 25-30 % WITHIN 1 YEAR Optima Batteries has reached a long-term agreement for the important US market with GNB Technologies Inc., one of the world's largest battery producers. The agreement is both a distribution and a technology development agreement and will run initially for 5 years. This definitive agreement ensures considerably greater sales volume for Optima in the retail segment in the USA. The retail segment is a completely new distribution channel for Optima. This segment, in the US, turns over 35 million batteries a year, of which GNB has significant market share and is comprised of nation-wide and regional auto parts chains, discount retailers, and department stores. GNB has unique knowledge in the field of lead-acid technology, from lead-alloy development to battery production and battery recycling. Furthermore, the company owns several patents in the field of lead-acid technology by virtue of its own research, which will now benefit Optima through joint product development. Under this agreement GNB will sell Optima's new battery, Red Top 925, under the "Champion®" brand which is one of the most recognized automotive brands in the US. GNB will have exclusive rights to this battery in the retail segment and will also market this battery through its company-owned branch network.This battery was developed by Optima to meet the growing demand for high-performance batteries for the US car market. Optima estimates that, under this agreement, net turnover will increase by 25-30%, or about US$10 million, during the first year of the agreement and will then continue to increase progressively. The agreement is a consequence of the high level of acceptance achieved by Optima's Spiral Cell Technology® in the lead-acid battery market. GNB Technologies is a wholly owned subsidiary of Pacific Dunlop Ltd of Australia. The parent company is listed on the NASDAQ in the USA. Further information about GNB can be obtained from the company's website (www.gnb.com) More information is available from company lawyer Lars Burström, Gylling Optima Batteries AB telephone number 08-622 32 52 or 070-420 11 86. E-mail: l.burstrom@optimabatteries.se Optima's website: http://www.optimabatteries.se ® Champion is a registered trademark of Federal-Mogul Corporation ® Optima Batteries and Optima SpiralCell Technology® are registered trademarks owned by Gylling Optima Batteries AB This text is available on the Internet at www.optimabatteries.se ------------------------------------------------------------ Please visit http://www.bit.se for further information The following files are available for download: http://www.bit.se/bitonline/1999/10/04/19991005BIT00350/bit0001.doc http://www.bit.se/bitonline/1999/10/04/19991005BIT00350/bit0002.pdf