ASHA Corporation Completes Technology Transfer to Taisun Automotive Group.SANTA BARBARA Santa Barbara (săn'tə bär`brə, –bərə), city (1990 pop. 85,571), seat of Santa Barbara co., S Calif., on the Pacific Ocean; inc. 1850. , Calif.--(BUSINESS WIRE)--July 22, 1998--ASHA Corporation has completed the initial phase of its joint venture for the production of the ASHA Body Concept (ABC ABC in full American Broadcasting Co. Major U.S. television network. It began when the expanding national radio network NBC split into the separate Red and Blue networks in 1928. ) vehicle. ASHA, having completed its task of development and technology transfer will now assist Taisun Automotive Group to take over the responsibility and direction for the production and sales of vehicles in the far east. Taisun is a manufacturer of vehicles, ships, electrical motors, fiber glass products, and chemicals. ASHA Corporation and Taisun Automotive, in a joint venture, own 85% of Jiaxing Independence Automotive Design and Development Automotive Design and Development Ltd (ADD) was an English company that was responsible for the creation of the futuristic-looking Nova kit car. The company was based in Southampton from 1971 to 1973 after which it moved to Accrington, Lancashire until 1975. , Co. Ltd. (JIAD&D). JIAD&D is expected to produce up to 10,000 complete vehicles annually at the facility in Jiaxing. It also is expected to produce additional complete knock down Complete knock down (CKD), is a complete kit needed to assemble a vehicle. It is a common practice among automakers, as well as bus and rail vehicle manufacturers, to sell knocked down kits to their foreign affiliates in order to avoid high import taxes and/or receive tax kits at the same facility. A knock down kit includes all of the components for one vehicle. ASHA Corporation will retain its royalty position in each vehicle manufactured under agreement with JIAD&D. The amount of the royalty has not been disclosed. Engineering staff, formerly working on the ABC project, are being reassigned to support ASHA's increased contract engineering services. The savings of approximately $55,000 per month will serve to reduce ASHA's operating expenses Operating expenses The amount paid for asset maintenance or the cost of doing business, excluding depreciation. Earnings are distributed after operating expenses are deducted. and increase bottom line profitability. According to according to prep. 1. As stated or indicated by; on the authority of: according to historians. 2. In keeping with: according to instructions. 3. Jack McCormack, ASHA Chairman and C.E.O., " This successful transfer of technology on the ABC vehicle to our China partners now frees ASHA to examine other global markets in which our proven ABC technology may be sold." ASHA Corporation, headquartered in Santa Barbara, develops advanced technology products, automotive design and manufacturing techniques for the global automotive industry. The stock is traded on the NASDAQ NASDAQ in full National Association of Securities Dealers Automated Quotations U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on SmallCAP Market (Symbol ASHA). Visit ASHA's Website at www.ashacorp.com for further information.
CONTACT: ASHA Investor Relations
Elliott Goldberg, 888/345-ASHA
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