SOURCE: Tank Sports, Inc.

October 31, 2007 08:30 ET

Tank Guangzhou Proposed to Purchase Assets and Technology From National Motor

GUANGZHOU, CHINA--(Marketwire - October 31, 2007) - Tank Guangzhou, the manufacturer of on-road motorcycles & scooters as well as recreational off-road motorcycles, all-terrain vehicles (ATVs), dirt bikes and Go Karts for Tank Sports, Inc. (OTCBB: TNSP), announced today that the board has recommended signing a Letter of Intent to acquire certain assets of National Motor Inc. (

National was founded in Taiwan and its major products are ATVs, Dirt Bikes, Motorcycles and Personal Water Crafts. This deal will enhance Tank's technological content; extend their high quality product lines. It also enables them to generate more revenues and profits for Tank's U.S. and European dealers. This will also be a bridge for Tank to penetrate the European market. Terms of the deal were approximately $1 million US.

The theme of the agreement contains four technical collaborations:

1) To develop long term technical collaboration and manufacturing with Suzuki engine technology;

2) To develop a PWC technical collaboration and manufacturing;

3) To develop a left hand multi-function switch technical collaboration and manufacturing;

4) Six cylinder engine research and development,

There are total of six additional product technology transfers and one shock technology transfer which have reached the highest international quality standards in effect. In addition to assets and technology collaboration that will be proposed for transaction, the European dealership that National Motor has been built up throughout years will also be included in the proposed deal.

This is another major move for both Tank Sports and Tank Guangzhou. Tank recently signed a Letter of Intent to acquire Dazon/PMI. Dazon's Buggy has one of the leading technologies amongst Chinese manufacturers. With the development of the 1100cc Kart leading the line, Dazon is already receiving very high praise in both the European and American markets. After the completion of the PMI/Dazon Shanghai acquisition, Tank Sports, Inc. expects to sign a technical collaboration agreement with another well known Japanese manufacturer. Tank's strategic plan is to collaborate with leading transportation manufacturing companies.

Industry Background

The $14.6 billion U.S. market for motorcycles is set to see its 13th consecutive growth year with the support of a key consumer bloc. Baby boomers are heading out on the highway in droves. Motorcycles, including cruisers, sport bikes, touring and dirt bikes accounted for nearly 91% of motorcycle sales in 2004 and scooters, standard bikes and dual-purpose bikes accounted for the rest of the market. All segments have experienced a boost in 2005 and through 2007, due to skyrocketing gas prices, bringing more cycle devotees into the core user group and further changing the face of the motorcycle consumer. In 2003, there were 8.8 million motorcycles in operation in the United States, or 3 motorcycles for every 100 persons. Of those, 6.9 million were used on public roads and highways, and 2.4 million were used off-road, these figures also include 500,000 dual-bikes, which are designed for use on public roads and for off-highway recreational purposes.*

China has recently emerged as a major player on the world motorcycle market. Throughout more than two decades in manufacturing, the entire motorcycle industry in China has managed to produce over 12 million units aggregately in annual output capacity by 2002 already.** This number is more than 60% of entire world output of motorcycle units by the year. As the quality of Chinese made motorcycles improves, the American consumers are buying more motorcycles other than big names. The units sold in the US market alone from Tank jumped 1,900% from year 2003 to 2005.

About Tank Sports, Inc.

Tank Sports is a leading company that develops, engineers, and markets high performance on-road motorcycles and scooters, as well as off-road all-terrain vehicles (ATVs), dirt bikes and Go Karts in China. It utilizes the so-called "China Concept'' to participate in the $31.5 billion annual (data: Motor Industry Council) motorcycle/ATV market. Tank Sports primary advantage is its efficient distribution network in the U.S.

About PMI, LTD.

People's Motor International Group (PMI) was started in 2001 by a team of experienced professionals to produce quality motorcycles, on/off-road buggies and engines at affordable prices to consumers of all countries. PMI has become a well-recognized manufacturer and exporter of their trademark brand, Dazon. Products included under this brand are engines, leisure vehicles and motorcycles and scooters of various engine sizes.

Safe Harbor

The foregoing news release includes numerous forward-looking statements concerning the company's business and future prospects and other similar statements that do not concern matters of historical fact. The federal securities laws provide a limited "safe harbor'' for certain forward-looking statements. Forward-looking statements in this news release relating to business developments are based on the company's current expectations. The company's current expectations are subject to all of the uncertainties and risks customarily associated with a small business ventures including, but not limited to, market conditions, successful product development and acceptance, competition and overall economic conditions, as well as the risk of adverse regulatory actions. The company's actual results may differ materially from current expectations. Readers are cautioned not to put undue reliance on these statements. The company disclaims any intent or obligation to update publicly these forward-looking statements, whether as a result of new information, future events or for any other reason.

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