MOU executed with Malaysian automotive parts manufacturer Mon, 14 Feb 2011 09:13:00 +1000       1 year, 3 months ago

14th February 2011 ASX ANNOUNCEMENT MOU WITH MALAYSIAN AUTO PARTS MANUFACTURER TO ESTABLISH JV SPRINTEX SUPERCHARGER MANUFACTURING FACILITY Key points • MOU executed with Malaysian Tier 1 automotive parts manufacturer Proreka for a Feasibility Study to determine potential to develop a large scale JV Sprintex® Supercharger manufacturing facility in Malaysia Potential JV with Proreka represents an outstanding opportunity for ATG to expand its Sprintex® Supercharger business on a commercial scale into the global automotive market On successful completion of Feasibility Study, parties will use best commercial endeavors to enter into a detailed agreement to: o o • establish the JV manufacturing facility, and to market and distribute ATG’s Sprintex® supercharger product range in the ASEAN region and Japan • • Establishment of JV with Proreka would reduce ATG’s supercharger costs by approx 50% & provide a competitive cost basis for supply of the Sprintex range to the OEM market Proreka is a Tier 1 Malaysian supplier to a number of mainstream automotive manufacturers and vehicle enhancement companies in the ASEAN region and Japan • ATG is pleased to announce that it has executed a Memorandum of Understanding (MOU) with Tier 1 automotive component manufacturer Proreka to carry out a full Feasibility Study on the potential for Joint Venture, volume production of ATG’s Sprintex® Supercharger range in Malaysia. Proreka is a Tier 1 Malaysian manufacturer to a number of vehicle manufacturers and vehicle enhancement companies across the ASEAN region and Japan, and would bring both volume manufacturing expertise and a considerable network of OEM links to the proposed JV. ATG has recently confirmed the world leading efficiency of its Series 5 Supercharger range, and would benefit considerably from the ability to supply its product range in large volumes at a low base cost.

ATG’s superchargers are currently cost competitive in the after sales market and establishment of the proposed JV with Proreka would reduce cost by approximately 50% and offer a competitive cost basis for supply of the Sprintex range into the OEM market. The MOU contemplates both volume production and an arrangement for OEM marketing and distribution rights for the ASEAN region and Japan. ATG would retain distribution rights for Sprintex Superchargers manufactured by the joint venture for the remainder of the global market.

1 Malaysia as a location provides a number of advantages to ATG. It offers a low cost manufacturing base that has the benefits of an established ....