NEW YORK and HARBIN, China, Dec. 11, 2008 (GLOBE NEWSWIRE) -- Advanced Battery Technologies, Inc. (Nasdaq:ABAT), a leading developer, manufacturer and distributor of rechargeable Polymer Lithium-Ion (PLI) batteries, today announced it has entered into a Letter of Intent to acquire 55% of Wuxi Angell Autocycle Co. Ltd. ("Wuxi Angell"). The Letter of Intent contemplates that Advanced Battery Technologies will issue 2 million shares of common stock and pay RMB25 million (approximately $3.64 million) in cash. The Company anticipates that the acquisition will close in the first quarter of 2009. However, completion of the acquisition is subject to execution of a definitive agreement, as well as satisfactory results of due diligence and to delivery of audited financial statements by Wuxi Angell.
Wuxi Angell, founded in 2002, develops and manufactures various types of electric vehicles, including electric bikes, agricultural transport vehicle and electric sports utility vehicles. With annual production of approximately 300,000 vehicles, Wuxi Angell's products are exported to 47 countries in Europe, United States and Asia. Wuxi Angell sold 50,000 and 70,000 electric bikes in 2006 and 2007 respectively.
Hybrid two-wheelers, one of Wuxi Angell's most renowned products, have obtained 13 national patents and are certified by EEC and TUV. Hybrid two-wheelers are powered by electricity at low speeds and by gasoline at high speeds. The lithium-ion battery used is charged when running at high speeds. Compared to traditional E-bikes powered by a lead-acid battery pack with the same level of energy capacity, Lithium-Ion battery packs have a longer lifespan, further continuous range, improved speed and increased uphill climbing capacity.
Mr. Zhiguo Fu, Chairman and CEO of Advanced Battery Technologies, Inc. stated, "We are very excited about this opportunity to welcome Wuxi Angell to our expanding business operations. We are confident that the proposed acquisition will create synergies and bolster R&D capabilities that allow us to further penetrate and capture more e-bike market share in the E.U., U.S. and Asia-Pacific markets.
"We believe the growth of electric bikes will be driven by increasing demand among consumers for environmentally friendly products and by heightened awareness of the benefits of electric vehicles within the Chinese government as well as among governments around the globe."
About Advanced Battery Technologies, Inc
Advanced Battery Technologies, Inc., founded in September 2002, develops, manufactures and distributes rechargeable Polymer Lithium-Ion (PLI) batteries. The Company's products include rechargeable PLI batteries for electric automobiles, motorcycles, mine-use lamps, notebook computers, walkie-talkies and other electronic devices. ABAT's batteries combine high-energy chemistry with state-of-the-art polymer technology to overcome many of the shortcomings associated with other types of rechargeable batteries. The Company has a New York office, with its executive offices and manufacturing facilities in China. For more information about Advanced Battery Technologies, Inc. (ABAT), please visit: http://www.abat.com.cn.
Wuxi Angell Autocycle Co., Ltd
Wuxi Angell Autocycle Co., Ltd, founded in 2002, develops and manufactures various types of electric vehicles, with a production and sales volume of 300,000 vehicles.
Angell owns three types of products listed in the E-Bike directory of more than 20 varieties: electric bikes; agricultural transport vehicles for practical transportation; sport utility e-vehicles such as scooters, off-road vehicles, go-karts, snow scooters, sea scooters, as well as underwater Propeller. Angell products are exported to more than 30 countries and regions in Europe, the United States and Asia. Angell's autocycle export ranked first in China in 2004 and 2005.
By the end of 2005, Angell successfully developed the world's first hybrid two-wheelers and obtained 13 relevant national patents. The hybrid is a low-speed electric-powered, high-speed petrol-powered computer-controlled motorbike. The battery is charged during high-speed running, which greatly increases mileage. The result is pollution-free and noise-free operation at low speeds, with an energy saving of 20% and pollution reduction of 35% compared to standard gas-powered vehicles. The use of lithium-ion battery greatly reduces vehicle weight, which increases acceleration.
Safe Harbor Statement
Certain statements in this release and other written or oral statements made by or on behalf of the Company are "forward looking statements" within the meaning of the federal securities laws. Statements regarding future events and developments and our future performance, as well as management's expectations, beliefs, plans, estimates or projections relating to the future are forward-looking statements within the meaning of these laws. The forward-looking statements are subject to a number of risks and uncertainties including market acceptance of the Company's services and projects and the Company's continued access to capital and other risks and uncertainties. The actual results the Company achieves may differ materially from those contemplated by any forward-looking statements due to such risks and uncertainties. These statements are based on our current expectations and speak only as of the date of such statements.