Grande West Transportation Group Inc.

Grande West Transportation Group Inc.

February 04, 2015 09:30 ET

Grande West Wins Tender and Announces Orders

VANCOUVER, BRITISH COLUMBIA--(Marketwired - Feb. 4, 2015) - Grande West Transportation Group Inc. (TSX VENTURE:BUS) ("Grande West" or the "Company") is pleased to announce the Company won a competitive public Tender Bid Contract for a 30' model Vicinity bus for Cape Breton Regional Municipality.

The Company secured additional orders with two new customers in the province of Quebec. Jean-Jacques Campeau Inc. of Brownsburg-Chatham and Fiducie Galland of Laval who have placed initial orders for a total of three 30' model Vicinity buses.

In the fall of 2014, the Company undertook to build seven buses for inventory to shorten the sales cycle. When the production run commenced in November, there was an order from Transdev for one bus. As previously announced, Transdev of Montreal then placed a repeat order, its fourth purchase order, for an additional two buses.

All of these orders resulted in the inventory being sold before the current production run reached completion. All seven buses will be delivered in April and May, 2015.

The total sale value for these seven sold buses equals $1,960,000 which will be received in April and May net of prepaid deposits when the buses are delivered to the four customers. The four most recent bus sales were priced at $290,000 each which is an increase of $48,000 per bus over the initial average sales price for the first 31 buses sold. The initial lower prices were set to gain sales awareness and transit system acceptance which has now been achieved.

By May 31st, there will be 38 Vicinity buses in commercial operation with six customers in three provinces. The Company currently has three buses for demonstration and commercial trials by potential customers across Canada. These units will be released for sale in the near future and will enable customers to have an opportunity for quick delivery now that the inventory buses have sold out.

About Grande West Transportation Group

Grande West was formed in 2008 to design and develop a 27.5 foot bus, known as the "Vicinity." With little competition in the "mid-size" bus range, Grande West has set itself apart from others with the Vicinity bus - a heavy duty mid-size, true community transit bus.

The Vicinity is designed with affordability, accessibility and global responsibility in mind. It costs 40% less than a regular 40 foot transit bus, burns less fuel, emits less harmful emissions and has lower maintenance costs. The Vicinity achieves a life span twice as long as the cut-away buses which are based on a truck chassis and are currently used by many transit operators. The Vicinity also has materially lower maintenance costs than a cut-away bus.

In a large and unsaturated market segment, Grande West is poised to capture sales growth from both the replacement of cut-away buses and the right sizing of larger buses for better utilization of transit fleets across Canada and the United States.

The future sales pipeline funnel is constantly growing. As the Vicinity is introduced to transit systems across Canada, a strong interest in the Vicinity is being generated.

Neither the TSX-V nor its Regulation Service Provider (as that term is defined in the policies of the TSX-V) accepts responsibility for the adequacy or accuracy of this release.

Cautionary Note Regarding Forward-Looking Statements

This press release includes certain "forward-looking information" and "forward-looking statements" (collectively "forward-looking statements") within the meaning of applicable Canadian securities legislation. All statements, other than statements of historical fact, included herein, including without limitation, statements regarding the completion of the Private Placement and the use of proceeds from the Private Placement, are forward-looking statements. Forward-looking statements are frequently, but not always, identified by words such as "expects", "anticipates", "believes", "intends", "estimates", "potential", "possible", and similar expressions, or statements that events, conditions, or results "will", "may", "could", or "should" occur or be achieved. Forward-looking statements involve various risks and uncertainties. There can be no assurance that such statements will prove to be accurate, and actual results and future events could differ materially from those anticipated in such statements.

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