PowerSki Signs $44 Million Manufacturing Contract to Begin Production Q1 2004.
TORRANCE, Calif.--(BUSINESS WIRE)--Dec. 9, 2003
Nova Communications Ltd. (OTCBB:NCVM) announced today that its proposed merger candidate, PowerSki International, designer and manufacturer of the PowerSki Jetboard, has signed a mass manufacturing contract with he PATx Division of The Hines Group.
The contract provides 75-day credit term financing and full outsourced manufacturing for 20,000 PowerSki Jetboards, plus an additional 4,000 SuperTorqueXT(TM) engines. The contract is valued at approximately $44 million.
Ken Owen, Nova Communications CEO, commented, "PowerSki has achieved a unique agreement with the PATx group, under which manufacturing financing, logistics, complete production, final assembly, and shipping will be handled to PowerSki's specifications. This is truly a phenomenal day for PowerSki."
The contract covers the current patented two-stroke engine, as well as the future planned fuel injected two-stroke and four stroke engines. The products will be assembled at the PATx Maquiladora operation in Matamoras, Mexico, with warehousing and shipping in its sister city, Brownsville, Texas.
Mr. Jim Abel, President of The Hines Group, stated, "PATx will utilize ISO quality systems and Just In Time manufacturing techniques to deliver the PowerSki Jetboard worldwide. This agreement provides PowerSki value competitive to Asian manufacturing with American components and an American partner."
Company representatives from PATx are visiting PowerSki's San Clemente facility this week to study the Jetboard specifications. Full operations are expected to begin in the first quarter of 2004.
About Nova Communications
Nova Communications recently announced that it has entered into a Memorandum of Understanding to close a merger with PowerSki International, the designer and manufacturer of the patented PowerSki Jetboard, the World's most innovative watercraft.
To learn more about the World's most innovative watercraft and to view behind the scenes footage of the Jetboard in action for Fox Sports' 54321 sports program, please visit http://www.ncvm.net or http://www.powerski.com/home.html.
Cautionary Statement for the Purpose of the Safe Harbor Provisions of the Private Securities Litigation Reform Act of 1995: Forward-looking statements in this news release are made under the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Certain important factors could cause results to differ materially from those anticipated by the forward-looking statements, including the impact of changed economic or business conditions, the impact of competition, the success of existing and new product releases, the management of our growth, other risk factors inherent in the telecommunications industry, and other factors discussed from time to time in reports filed by the company with the Securities and Exchange Commission.
Nova Communications has and continues to institute changes to its strategies, operations and processes to address these risk factors and to mitigate their impact on Nova Communication's results of operations and financial condition. However, no assurances can be given that Nova Communications will be successful in these efforts.
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|Date:||Dec 9, 2003|
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