CSY cmc power systems limited

CMC Power backing Ann.

  1. 613 Posts.


    CMC POWER SYSTEMS LIMITED 2002-06-06 ASX-SIGNAL-G


    +++++++++++++++++++++++++
    * Consortium backs Australian challenge for share of the automotive
    world change to 42-volt systems


    * 9 million vehicle market over next five years


    * Funding for completion of production prototypes of CMC's Sytec
    42-volt Auxiliary Power Unit (APU) - a "category killer"



    Australian listed company CMC Power Systems Limited (ASX: CSY) has
    arranged an $8.8 million commitment from an investor consortium which
    will enable completion of production prototypes of its Sytec 42-volt
    Auxiliary Power Unit (APU) - a power pack critical for the global
    change to 42-volt systems for vehicles.



    CMC Power Systems Limited is one of two or three potential key
    power pack providers in the evolution to 42-volt systems which is now
    beginning among leading automotive manufacturers to meet the higher
    electric requirements of modern vehicles. Nine million vehicles are
    expected to be manufactured with 42-volt systems during the next five
    years as the system is gradually introduced.



    CMC Power Systems Limited has arranged the funds from a private
    consortium and with the signing of Heads of Agreement has received
    the first tranche of $1.1 million from MeesPierson Asia Limited, the
    worldwide Private Bankers of Fortis.



    Fortis ranks among the 20 largest financial institutions in Europe
    and MeesPierson is one of Europe's top ten private banks.



    The balance of the funding is to be provided by the private
    consortium in several tranches linked to the achievement of technical
    milestones in the APU development project.



    CMC Power Systems Limited CEO Steve Arblaster said today that the
    funding would take the company through to the point where the first
    sales orders are secured.



    "CMC Power Systems Limited has already reached the point where it has
    a low cost commercial power pack and has global strategic alliance
    partners in place to bring the unit to market," he said.



    42-VOLT EVOLUTION STARTS THIS YEAR



    Mr Arblaster said that: "In a virtually unheralded 'sea change' that
    will impact all cars and trucks, the automotive industry is beginning
    a rapid move to 42-volt electric systems to handle the power
    requirements of this next generation of vehicles.



    "Systems are being introduced this year to a few top marque models
    and nine million vehicles will be produced with 42-volt power packs
    over the next five years. Before the end of the decade, production of
    42-volt equipped vehicles will have risen to over ten million a year.



    "In the same way that all vehicles moved from 6-volt systems to
    12-volt systems back in the early 1950s, now the industry is about to
    move to 42-volt systems, where power output requirements will be
    beyond the capacity of current alternators/ generators to provide.



    "A race existsbetween automotive designers globally to provide a low
    cost power pack for a commercially viable 42-volt generating system -
    and CMC Power Systems Limited is ahead in terms of its development
    schedule and ability to provide a low cost solution.



    "CMC Power Systems Limited, which has an established track record of
    designing and engineering highly efficient, lightweight engines
    through unique patented innovations, eight months ago began
    developing its APU in response to the automotive industry's migration
    to 42-volt technology. This is being developed in conjunction with a
    world renowned UK-based engine development house.



    The APU power pack is a small "drop-in" unit which incorporates an
    ultra-light, ultra-compact, advanced design four-stroke 500cc Sytec
    engine, a generator and an engine management system."



    Early this year CMC Power Systems Limited, which is headquartered
    in Sydney and has its research and development facilities in
    Melbourne, formed a strategic alliance with the Aria Group, a leading
    California-based automotive design house, to form Aria Power
    Products, which will secure strategic partnerships with world class
    engine manufacturers and suppliers to ensure successful product
    acceptance by customers.



    Aria is one of the largest independent and progressive automotive
    design houses in the US, whose clients include Toyota, Nissan,
    DaimlerChrysler, Bentley/Rolls Royce, and BMW.



    CMC Power Systems Limited'sdevelopment schedule is to have a
    working prototype APU manufactured and commissioned for testing by
    the end of September this year and by the end of December initiate
    design and production tooling.



    SHARES AND OPTIONS



    Under the agreement, the investment consortium may contribute up to
    $8.8million to subscribe for 80 million ordinary shares at $0.11
    cents each.



    In addition, as part of the agreement CMC Power Systems Limited
    will grant 50 million options exerciseable on orbefore 31 May 2006
    at $0.40 cents per share.



    Tony Tang
    Company Secretary
    CMC Power Systems Limited
    (02) 9699 9000



    For further information
    Steve Arblaster
    CEO CMC Power Systems Limited
    (02) 9699 9000



    Doug Macdonald
    Capital Group
    0408 143 404









 
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