20 Sep Magplane & Inner Mongolia Partners Execute Formal JV Agreement
MAGPLANE & INNER MONGOLIA PARTNERS EXECUTE FORMAL JOINT VENTURE AGREEMENT
Bedford, MA – 20 September 2007 – (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.”
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 operations.For more information on the Company, visit http://www.magplane.com.
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.
CONTACT: Jason Mill
Magplane Technology, Inc.
SOURCE: Magplane Technology, Inc.