2006-04-03
Madison Bay Holdings Inc. Signs Agreement with Alaskan Campers, Inc. to Acquire the Assets of Wheat Motor Coach
Contact: Ricardo Ruelos, CEO
206-932-9488
FOR IMMEDIATE RELEASE
Madison Bay Holdings Inc. Signs Agreement with Alaskan Campers, Inc. to Acquire the Assets of Wheat Motor Coach
SEATTLE, April 3 /PRNewswire-FirstCall/ -- Madison Bay Holdings Inc. (Pink Sheets: MDBY - News) announces they have signed an agreement with Alaskan Campers Inc., granting an exclusive option for Madison Bay to acquire all the assets, trademarks, and all proprietary rights to manufacture and market the Wheat Motor Coach. (Also known as the WMC)
The WMC is a 26 foot and 23 foot motorized Recreational Vehicle. The assets, molds, and tooling to be acquired are the original molds and tooling that were developed by General Motors Corporation to manufacture the General Motors 26 foot and 23 foot GMC Motor Home (www.gmcmotorhome.com ). These assets were purchased from General Motors Corporation by WMC, and will now be acquired by Madison Bay Holdings.
Upon acquisition of the molds and equipment Madison Bay Holdings, will combine the manufacturing, sales and marketing of the WMC, with the operations of the Summit Coach division of Madison Bay Holdings.
It is understood that General Motors has spent over $15 million dollars to develop the molds and tooling for the Wheat Motor Coach. This is an advanced technology that allows for efficient high volume production identical to manufacture the entire Corvette automobile and many of the parts, such as hoods and trunks, on many of the cars being produced today.
Ricardo Ruelos, Chairman and CEO, commented "I believe the WMC can be an amazing opportunity for Madison Bay Holdings. When General Motors introduced the original GMC Motor Home, it was a futuristic product and is currently a very marketable product. If you go to General Motor Corporation's website, you will see that this is a vintage product with a cult following and existing, passionate customer base.
Our plan is to engineer the drive train and chassis with modern day technology and market the WMC Motor Homes in conjunction with the Summit Coach Stiletto and other products. The GMC styling is timeless, and with updated engineering of the drive train, chassis, and interior, the WMC could generate over 1,500-2,000 units in annual sales with in two years. The initial plan is to introduce a fifth wheel trailer first year and engineer the Motor Home for introduction in year two or three.
With the ability to purchase drive trains and chassis in China this presents some very unique growth opportunities due to the advance manufacturing process and the ability to reach high volume levels with low production costs. As a result of this, sales potential can accelerate as high as $20 million in year two to three, and exceed $100 million in the following two to three years with the shipments of the motorized version of the WMC Motor Coach."
Don Wheat, owner of Alaskan Campers, added "This is a great opportunity for both the Wheat Motor Coach and Madison Bay Holdings. The WMC represents potential for $22 million in pre tax earnings, and is an extremely viable product. We feel Madison Bay Holdings, and Ricardo Ruelos is going to be the man to get the WMC Motor Home project to the sales and profit levels that can be achieved."
About Madison Bay Holdings, Inc.
Madison Bay Holdings, Inc. is a marketer and distributor of Recreational Vehicles, Powerboats and Leisure Watercraft. The Company owns all equipment, designs and trademarks of Summit Coaches, the Recreational Vehicle (RV) division that specializes in manufacturing, marketing and selling upscale and feature-oriented RV trailers, including a flagship 38-foot RV, the "Stiletto." Madison Bay Holdings' marine division is involved in boutique leisure product distribution. Madison Bay Holdings also provides a variety of financial, marketing, and sales consulting services to boat manufacturers, dealers, distributors and leisure product/water sport companies.
For more information on the company and its newly appointed advisory board please visit the website http://www.madisonbayholdings.com.
Safe Harbor statement under the private Securities Litigation reform Act of 1995
This news release contains forward-looking statements, including statements regarding the Company's expectations about successfully selling its products and about the positive effects of the acquisition described herein. Such forward-looking statements involve known and unknown risks, uncertainties, and other factors that may cause actual results to differ materially from future results expressed or implied in such statements. These risks and uncertainties include the inability to manage expected growth, the failure to realize the increased revenues and improved operating margins that the Company has associated with sales of our products, the loss of any key personnel, our inability to introduce new products that are accepted by the market, the loss or non-performance of our sales representatives, unfavorable results of potential litigation, and the possibility that competitors could develop or acquire technology that could erode the Company's technical advantages. The Company disclaims any obligation to update any such factors or to announce publicly the results of any revisions to any of the forward-looking statements contained in this news release.
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