Orbit Technologies Inc. signs $18.4 million joint venture agreement with Chinese government investment firm

Business Wire, June 22, 1995

RANCHO SANTA FE, Calif.--(BUSINESS WIRE)--June 22, 1995--Orbit Technologies Inc. (Symbol:OBTI), has signed a $18.4 million Joint Venture Agreement and Equipment Service and Supply Agreement for its Titanium Processing Technology with GTI Cooperative Development Corp., a jointly managed company of the China Huizhou Advanced Technology City Development Corp. and the China Guangxi Yulin District Economic and Trade Development Corp. This signing represents the formalization of contract negotiations announced March 14, 1995.

In accordance with these agreements, Orbit, a 35% equity participant in technology and equipment, is the turnkey contractor and operator of its patent-pending Low-Cost Titanium Refining System. This agreement represents the first construction phase of a contemplated $65 million titanium processing plant.

The first payment of $6 million plus $6 million in Letters of Credit will be advanced to Orbit by the Joint Venture. Design and construction of the first of two Mini-processing Lines (Phase One) is currently scheduled to commence on or before August 28, 1995.

The Agreement calls for exclusive equipment production granted to Orbit for the 25-year life of the joint venture. Additionally, Orbit will be the exclusive worldwide licensee for the marketing of the titanium ingots and alloys produced by the joint venture.

In addition to substantial profits in equipment supply and services, operating profit contribution to Orbit could be as much as $3 million per annum beginning in 1996 based on Phase One design production budget levels. This could rise to more than $40 million per annum based on full plant construction and equivalent production targets.

Prior to the closing date, Orbit will complete all formal documentation and regulatory requirements in conformance with Chinese business practice. Orbit will comply with all U.S. government regulations as they may apply to technology export and product marketing as defined by this contract.

DISCLAIMER: The application of new and revolutionary technologies is frequently subject to industrial acceptance and governmental regulations and there is no guarantee products will attain market recognition.

CONTACT: Orbit Technologies Inc., Rancho Santa Fe

Ian C. Gent, 716/592-2688, fax: 716/592-2576