|Bedford, MA ¨C 20 September
2007 ¨C (PRNewswire) Magplane Technology, Inc. (OTC: MAGP)
announces today that it has executed formal joint venture agreements
with its partners in Inner Mongolia. The parties to the agreement
are Magplane¡¯s wholly owned subsidiary, Magplane Pipeline
Technology, Inc., Beijing Farthest Technology, Co. and Inner
Mongolia Maglev Investment and Development Co., Ltd., a consortium
of a government investment agency and several industrial companies.
After continued negotiation, Magplane Pipeline
Technology, Inc. has now become the majority partner holding 51% of
the JV, Inner Mongolia Maglev Investment and Development, Co. holds
39%, and Beijing Farthest Technology, Co. holds 10%.
In a related agreement, the JV partners
have agreed that the Joint Venture Company will pay a one-time
Intellectual Property Compensation fee of US$8 million (net) to
Magplane Pipeline Technology, Inc. for the transfer of all
intellectual property required to manufacture MagPipes. The IP fees
will be paid in installments over a
12-month period as the demonstration project is completed and the IP
is transferred to the JV.
|The demonstration project is expected to be
complete within 12 months after which construction of the first
commercial MagPipe will begin. Preliminary agreements with coal and
power companies have been reached for the first two commercial lines
totaling over 40km that will generate substantial revenue.
Dr. Bruce Montgomery, President & CTO of
Magplane, said ¡°The Inner Mongolia coal industry has expressed
significant need for an alternative to typical truck transportation.
Rising trucking costs and the difficult terrain in the region make
MagPipe an attractive solution. Mining companies world-wide face
similar challenges so we look forward to demonstrating the strength
and value of MagPipe in Inner Mongolia.¡±
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|About Magplane Technology, Inc.
Founded by a group of MIT engineers, Magplane Technology, Inc. (MTI)
is the developer of the Magplane system, an innovative magnetic
levitation (maglev) transportation system that offers significant
advancements over other high-speed trains and light-rail transit
systems. Magplanes can achieve speeds up to 500 km/hour for
inter-city travel and nearly silent operation for urban mass transit
systems. The Magplane system has also been adapted for use in a
unique pipeline application that can reduce the cost and pollution
from diesel trucks used in transporting material from mining
For more information on the Company, visit
Statements regarding financial matters in
this press release other than historical facts are "forward-looking
statements" within the meaning of section 27A of the Securities Act
of 1933, Section 21E of the Securities Exchange Act of 1934, and as
that term is defined in the Private Securities Litigation Reform Act
of 1995. The company intends that such proclamations about the
Company's future expectations, including future revenues and
earnings, technology effectiveness and all other forward-looking
statements be subject to the safe harbors created thereby. Since
these statements involve risks and uncertainties and are subject to
change at any time, the Company's actual results may differ
materially from expected results.
Magplane Technology, Inc.
SOURCE: Magplane Technology, Inc.