DUBAI, United Arab Emirates, Feb. 28 /PRNewswire-FirstCall/ -- Axial Vector Engine Corporation
today announced that its project finance agreement with a Dubai Consortium has now been set at an initial investment of forty five million USD for its new "ultra efficient multi-fuel GENSETS." This long-term construction commitment is payable at LIBOR plus 6%. Payments are interest-only for one year after facility completion and may be prepaid against a 4% penalty after two years.
Other major points updated by management include:
-- One mega-watt price set at $274,500, which is 25% less than the current
market leaders.
-- "Carbon Credits" for each megawatt of power produced per year equals
$127,000. This added value has been packaged by Emirates International
Capital Advisory, "EICA" (http://www.emiratescapital.net), to provide
customers and government entities wishing to purchase AVEC GENSETS the
opportunity to do so by signing "power purchase" agreements.
-- Income streams will then be hedged and guaranteed by third party
agencies and institutions currently affiliated with EICA. Income from
these power sales will be divided 60% to EICA and 40% to AVEC during
the first five years. The remaining fifteen years of the agreement, net
profits shall be distributed 50% percent EICA and 50% AVEC.
-- With the completion of the production model of the AVEC GENSET now
finished, final due diligence is being completed quickly by EICA
concerning its purchase of Adaptive Propulsion Systems in Detroit,
Michigan USA. Plans call for a March 2008 closing and a substantial
expansion of these facilities to enhance other products to market using
the family of AVEC. Site reviews for additional engineering and factory
space are also being studied in Jebel Ali Free Zone in Dubai as well as
an expansion of the Detroit, USA facilities.
Ahmed Khalifa, Chairman of AVEC, stated, "On Monday, March 3rd we will post on our website a transcript of yesterday's conference call, as well as pictures and photo history of our newly completed GENSET as it is shipped to Dubai for our Global premier March 11-13 at WETEX in Dubai." Axial Vector(TM) Engine Corporation is a publicly traded company
that owns, develops and licenses proprietary intellectual property regarding unique internal combustion engine technologies. AVEC is applying these technologies to develop an exciting, new, smaller and lighter internal combustion engine that produces significantly greater horsepower and three times more torque on less fuel than conventional engines of similar size. Forward-Looking Statements This press release may be deemed to contain forward-looking information. Any forward-looking statements are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements, including statements as to industry trends, future economic performance, anticipated profitability, anticipated revenues and expenses, and products or service line growth, may be significantly and materially impacted by certain risks and uncertainties, including, but not limited to, failure to meet operating objectives or to execute the operating plan, completion, and other economic factors. Additional risks and uncertainties are described in the Company's public filings with the Securities and Exchange Commission.
CONTACT:
Axial Vector Engine Corporation
503-471-1348
avec@emiratescapital.net
One World Trade Center
121 SW Salmon Street, Suite 1100
Portland, Oregon USA
(503) 471 1348
www.axialvectorengine.com
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