Corporate News
Asian Manufacturing & Distribution Joint Venture
Armor Designs Inc., (AIM: ADID, ADIS), the knowledge-based designer and manufacturer of composite protective products, using its proprietary Volumetrically Controlled Manufacturing ("VCM") process, is pleased to announce that it has entered into a Joint Venture Agreement ("Agreement") with King Castle Holding Ltd. ("King Castle") of Hong Kong, to design, manufacture, and distribute commercial and civilian products in the Asia Pacific region.
Under the terms of the five-year Agreement, King Castle is committed to build a turn-key made-to-order VCM production facility. The VCM production facility will be leased back to the joint venture. The plant is scheduled to go into commercial production in 2011.
It is the intent of the joint venture to be a leading supplier of quality construction and industrial armor materials, playing a significant role in the construction, infrastructure development, and manufacturing industry sectors in Hong Kong and mainland China.
Under the terms of the Agreement:
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Armor Designs Inc. will have a 51% ownership stake with 4 Board seats and King Castle will have 49% ownership stake with 3 Board seats.
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Armor Designs Inc. will manage the design, manufacture, and distribution of VCM products, while King Castle will develop the regional sales & marketing team in the region.
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Armor Designs Inc., will receive a royalty of 5% of gross sales for all VCM products produced at the new facility.
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For the next two-years, while the VCM facility is being constructed and the capital equipment being manufactured, all purchase orders originating from the King Castle sales team will be fulfilled by Armor's existing production facilities in Phoenix, Arizona.
Dr. James A. St. Ville, Executive Chairman of the Company, commented: "Armor Designs is excited to team with King Castle to improve our ability to meet the increasing needs for next-generation civilian and commercial composite armor of the future".
For further information please contact:
| Armor Designs, Inc. | |
| Phil Clement, Interim CEO | Tel: +1 602 275 4633 |
| Phil.Clement@armordesigns.com | www.armordesigns.com |
| ZAI Corporate Limited | |
| Graeme Thom / Thilo Hoffman | Tel: +44 (0) 20 7398 2900 |
| thiloh@zimmint.com | www.zimmint.com |
Media enquiries:
| Brunswick Group LLP | |
| Michael Harrison / Chris Blundell / Camilla Gore | Tel: +44 20 7404 5959 |
| adi@brunswickgroup.com | www.brunswickgroup.com |
Notes to editors:
Armor Designs, Inc. ("ADI") is a knowledge-based company specializing in next-generation composite material design, manufacture, prototyping and testing for applications and products for the armor industry. ADI uses a proprietary design and manufacturing process called VCM to rapidly develop new composite armor products of superior ballistic, weight and flexibility. The VCM process is protected by patents and trade secrets licensed to ADI in perpetuity for use in field of armor.
For more information on Armor Designs, Inc., please go to www.armordesigns.com
King Castle Holding Ltd. is a holding company created by a group of investors in ADI to undertake the rollout of VCM production in the Asia Pacific region.
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