Press Releases

Letter of Intent Signed for Joint Venture in China / UK Update

9th February 2004

Manganese Bronze Holdings Plc the leading manufacturer of the distinctive London black taxi has today signed a Letter of Intent with China National Bluestar (Group) Corporation and the Lanzhou Municipal People's Government for the establishment of a joint venture company to manufacture purpose built taxis in China.

Following the signing of the Letter of Intent, the parties will submit a feasibility study to the Chinese government in support of a license application for the project.

Bluestar is a state-owned enterprise in China, headquartered in Beijing with total assets of over 20 billion Yuan RMB. Bluestar owns 10 specialised companies comprising many enterprises and scientific research institutions, as well as three companies listed on the Chinese stock market. Chonche, a Blustar company, has in excess of 200 automotive repair facilities throughout China. Bluestar has overseas branch offices in USA, Japan, Australia and Ukraine.

Lanzhou is the capital of Gansu Province, a major transport and industrial centre on the Yellow River. Lanzhou is a major communication hub for the North West region of China with a population of 3.1 million, GDP of $5.0billion,industrial output of $2.2billion and fiscal income of $1.0billion It is one of China's leading petrochemical and electricity generating centres.

UK update

The number of taxis sold or registered in the UK during the six months to January 2004 was 1,080 compared to 1,038 in the first half of 2003. Exports in the same period increased to 162 (2003; 8) of which 109 were to the company's US distributor, LTNA.

Manganese Bronze's new mobile phone taxi hailing service, Zingo, now has over 1,100 taxis in service and is making progress towards the group's target of achieving a monthly break-even position. Zingo received almost 100,000 calls in December although the expected slow down in activity over the holiday period lasted longer than anticipated which has temporarily affected hail volumes and driver recruitment in January.

Commenting on the signing of the Chinese Joint Venture Letter of Intent:

Mr Ian Pickering, Chief Executive of Manganese Bronze said;

“I am delighted that we have reached this significant milestone. We are implementing our strategy of growing the group's business outside its traditional home market.

“Bluestar has a proven track record of growing new businesses which, together with the support of the Lanzhou Municipal People's Government, will be central to making a success of the proposed joint venture.”

Mr Zhiyin Zhang, Mayor of Lanzhou City said;

“We welcome LTI to Lanzhou. This cooperation will benefit the Lanzhou economy and LTI. Our partnership will be a vital step propelling LTI forward internationally. ”

Mr Jianxin Ren, President of Bluestar said;

“LTI should be proud of its vehicle – Bluestar is proud to be partnering with LTI.”

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