SOURCE: Axial Vector Energy Corp.

October 18, 2010 05:51 ET

Axial Vector Rejects Buy Out Offer For Its Rare Earth Permanent Magnet Generator Division As Insufficient

VIRGINIA BEACH, VA--(Marketwire - October 18, 2010) -  Axial Vector Energy Corporation ("AVEC") (PINKSHEETS: AXVC), a developer of state-of-the-art green technologies, announced today it has rejected the offer to purchase its rare earth permanent magnet generator division as insufficient. The offer asked for all finished and under development generators, level two engineering drawings and intellectual property including patents and proprietary information.

The offer was for five million dollars in cash. AVEC has capital invested in excess of $4.3 million in this product.

As a result, the company has now received additional inquiries for buying or Joint Ventures with our generator division. Two additional NDAs (non disclosure agreements) have been signed for technical reviews.

The modern world hungers for electricity. Traditionally, this hunger was sated with predominantly constant-speed-regulated, synchronous generators. However, new demands require the stable, quick, lightweight and efficient delivery and control offered by new technology. AVEC permanent magnet generators are part of the next generation answer to that hunger.

The AVEC board did vote and agree to interview and retain an investment banking firm with regional China expertise to facilitate a road show for seeking stronger buy out offers or Joint Ventures which could allow rapid deployment and commercialization of the company's "Ultra High Efficient" generators. The generators have been tested at 98.4% plus efficiency.

The market for wind generators alone exceeds $10.8 billion and the total generator market is several times that. All investment banks interviewed to date agree that AVEC should consider partnering with one of the Chinese Special Economic Zones.

Special Economic Zones of the People's Republic of China are Special Economic Zones (SEZs) located in mainland China. The government of the People's Republic of China gives SEZs special economic policies and flexible governmental measures. This allows SEZs to utilize an economic management system that is especially conducive to doing business that does not exist in the rest of mainland China. The Government of the Peoples Republic of China has provided $34.6 billion for "Green Energy Investing" (more than twice that of the United States).

The most important component in AVEC generators is the rare earth permanent magnets. China is currently in control of a large majority of the permanent magnet supply both in ground and finished products. AVEC believes this provides a huge economic incentive to China for accessing rights to AVEC ultra efficient generator systems.

The Board has instructed management to work aggressively on getting the generators in commercial production in whatever manner will return maximum value to the shareholders.

About Axial Vector Energy Corporation
Axial Vector Energy Corporation (AVEC) is a global solutions provider that owns, develops, invests in and licenses revolutionary technologies including internal combustion engine and electric power generator technologies that have unlimited potential in military, industrial and commercial applications. AVEC and its partners are positioned to become unrivalled leaders in international engine and energy markets with technologies that produce more efficient, cost effective, environmentally sensitive and versatile solutions for use in a wide variety of important applications around the world.

Safe Harbor Statement
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements include, among others, all assumptions, expectations, predictions, intentions or beliefs about future events. You are cautioned that any such forward- looking statements are not guarantees of future performance and that a number of risks and uncertainties could cause actual results of the Company to differ materially from those anticipated, expressed or implied in the forward-looking statements. The words "believe," "expect," "anticipate," "project," "targets," "optimistic," "intend," "aim," "will" or similar expressions are intended to identify forward-looking statements. All statements other than statements of historical fact are statements that could be deemed forward-looking statements. Risks and uncertainties that could cause actual results to differ materially from those anticipated include risks related to new and existing products, product defects and any related product recall; any projections of sales, earnings, revenue, margins or other financial items; any statements of the plans, strategies and objectives of management for future operations; any statements regarding future economic conditions or performance; uncertainties related to conducting business in China; any statements of belief or intention; any of the factors and risks mentioned in the "Risk Factors" section of our Annual Report on Form 10-K for the year ended December 31, 2007 and any subsequent SEC filings. The Company assumes no obligation and does not intend to update any forward-looking statements, except as required by law.

Contact Information

  • For further information, please contact:
    Investor Relations
    Redwood Consultants
    415 884 0348

    Samuel Higgins, Chairman
    Axial Vector Energy Corporation
    Telephone: +(757) 301 0557

    Building #1, 1397 Taylor Farm Road
    Virginia Beach, VA 23453
    United States
    T: +(757) 301 0557