Feel Good Cars Corporation
TSX VENTURE : ZNN
ZENN Motor Company
April 30, 2007 16:42 ET
ZENN Motor Company Makes Equity Investment in Strategic Partner, EEStor, Inc.
TORONTO, ONTARIO--(CCNMatthews - April 30, 2007) - Feel Good Cars Corporation (TSX VENTURE:ZNN), operating as ZENN Motor Company ("ZENN"), announced today that it has made a US $2.5 million equity investment in Austin-based energy storage developer, EEStor, Inc. The negotiated investment terms also grant ZENN an additional investment option of up to US $5 million on the same terms, following EEStor's successful completion of its next major milestone: permittivity testing.
"We are very pleased to strengthen and deepen our strategic relationship with EEStor through this investment," said Ian Clifford, Chief Executive Officer of ZENN Motor Company. "Becoming a shareholder in EEStor at this pivotal point in their development represents an exciting opportunity for ZENN shareholders to benefit from participation in the broader market applications that EEStor will potentially develop for its technology, in addition to our exclusive automotive applications."
Following this initial investment of US $2.5 million, ZENN Motor Company will own approximately 3.8% of the equity of EEStor, Inc. The investment is being made through ZENN Capital Inc., a wholly owned subsidiary of Feel Good Cars Corporation and is subject to applicable regulatory approvals.
Permittivity is a measurement of how much energy can be stored in the EEStor production materials. The requirements of permittivity levels are specified in detail in the existing Technology Agreement between ZENN Motor Company and EEStor, Inc. The verification of permittivity levels will be conducted by an independent 3rd party laboratory. This testing is required to show consistent and replicable results of both the production line and materials produced.
Under its Technology Agreement with EEStor, Inc., ZENN holds certain worldwide exclusive licenses for EEStor's batteries for new small and medium-sized low speed and highway capable vehicles (up to 1,400 kgs curb weight). ZENN also holds worldwide exclusive rights for EEStor's batteries for the conversion of any used internal combustion passenger vehicle to electric drive. The Technology Agreement is in good standing.
While continuing to grow its core business of assembly and distribution of low speed electric vehicles, ZENN Motor Company is actively pursuing the commercialization of EEStor technology for its exclusive worldwide markets.
ABOUT ZENN MOTOR COMPANY www.ZENNcars.com
Headquartered in Toronto, Canada, Feel Good Cars Corporation and its wholly owned subsidiary Feel Good Cars Inc., is dedicated to producing zero-emission transportation solutions for global markets, including the revolutionary ZENN, the perfect vehicle for urban commuters, fleets (such as resorts, gated communities, airports, college and business campuses, municipalities, parks and more), the environmentally conscious driver, and consumers who just want to save money. The ZENN is sold through a growing network of retailers across the United States.
The ZENN is a fully electric low speed vehicle (LSV) with European styling and appointments that offers customers tremendous operational cost savings compared to a vehicle powered by an internal combustion engine. Recently named Best Urban Vehicle at the Michelin Bibendum Challenge, ZENN performed exceptionally well in all categories including excellent overall design, acceleration, braking, lowest power consumption and lowest noise level.
The potential commercialization of EEStor's Electrical Energy Storage Units in future ZENN vehicles will allow them to go as far and as fast as a traditional car at a fraction of the cost. Moreover, the ZENN electric vehicles will have all of the benefits of an internal combustion vehicle without the harmful emissions, sensitivity to escalating gas prices, or noise pollution. This environmentally friendly alternative will help make the widespread concerns about oil dependency a thing of the past.
The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.