SOURCE: Novation Holdings, Inc.

October 23, 2013 08:45 ET

Novation Holdings' Subsidiary Signs Factory Direct Representative Agreement

BOCA RATON, FL--(Marketwired - Oct 23, 2013) - Novation Holdings, Inc. (OTCQB: NOHO), today announced that StarPoint USA, Inc., a wholly owned subsidiary of Crown City Pictures, Inc. which is in turn controlled 60 percent by NOHO, has executed a Factory Direct Representative Agreement with GP GreenPower Industries ("GPI"). The Agreement also appoints StarPoint USA as GP GreenPower's Exclusive Authorized Factory Direct Representative for the sale of GP GreenPower's EV350 and EV350-MC buses and other future models, currently for the States of Texas, Oklahoma, New Mexico, Louisiana, Mississippi and Puerto Rico. Additionally, StarPoint USA plans to obtain approval from the U.S. Government Services Administration ("GSA") to sell GPI buses to a wide range of GSA accounts. GPI's EV350-MC is an all-electric 48 passenger bus. GPI's EV350 is an all-electric transit bus incorporating lightweight battery packs providing for a range in excess of 250 kilometers (155 miles). "We are very excited to be working with GP GreenPower in the transit bus space where our vehicle sales and distribution expertise will align closely with their alternative fuel, eco-friendly transit buses, luxury motor coaches and other alternative fuel models we are cooperating on to have available in the future," said Ben Rainwater, President & CEO of StarPoint USA. 

StarPoint USA is a U.S. based vehicle distribution company that has a proven sales track record but that is not exclusive to any specific vehicle brand. This allows it to distribute a number of different vehicle brands and models in the U.S. market. As part of its ongoing business, StarPoint USA had been the exclusive distributor of Daewoo vehicles and Genuine Daewoo Parts to the U.S. market since 1998 and, today, continues to provide both warranty administration and genuine Daewoo parts to the remaining Daewoo owners in the U.S. StarPoint USA also does business in the alternative fuel vehicles ("AFVs") space. StarPoint USA plans to maximize sales and market share through the near term use and further development of an existing and robust independent retail dealership network. The company will offer unique vehicles of exceptional value at very competitive prices, like the GP GreenPower EV350 and EV350-MC buses, with sales being supported by a seasoned, market savvy management team that is capable of implementing a marketing strategy designed to introduce new vehicle models and brands and to establish it as a leader in the alternative fuel vehicle market niche. "An important aspect of our business strategy is marketing a portfolio of different AFV models that meet the needs of a wide variety of end users including both fleet operators and retail customers and this new relationship with GP GreenPower and their product line-up is a great fit for us," added Rainwater. 

GP GreenPower Industries Inc. is a British Columbia corporation focused on the Public Sector Heavy Duty Transit Bus and Private Sector Motor Coach Transportation Industries and Eco-commercial equipment for the global market place. With 100+ years of management experience, the company is engaged in the design, engineering, manufacturing, sales and aftermarket business of buses, coaches, and select commercial equipment. "We believe that we have created the perfect team by combining GPI's world-class product with StarPoint's expertise in sales and marketing of vehicles in North America," said Phillip Oldridge, CEO of GP GreenPower. "StarPoint's track record speaks for itself and uniquely positions us in a rapidly expanding EV bus market." 

The AFV market is a growth segment that stands to increase market share significantly by 2035 according to projections by the U.S. Energy Information Administration (EIA), which includes a mix of flex-fuel, mild hybrid, hybrid gasoline/diesel, electric, plug-in hybrid electric, gaseous, electric and fuel cell. These AFVs are expected to play a significant role in meeting more stringent Green House Gas ("GHG") emissions and fuel economy standards, as well as offering fuel savings in the face of higher gasoline prices.

FORWARD LOOKING STATEMENT

Certain statements contained herein and subsequent oral statements made by and on behalf of Novation Holdings, Inc. may contain "forward looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward looking statements are identified by words such as "intends", "anticipates", "believes", "expects", and "hopes" and includes, without limitation, statements regarding Novation Holdings, Inc.'s plan of business operations, product research and development activities, anticipated revenues and expenses and potential contractual arrangements and obligations. Also, our management may make forward-looking statements orally to investors, analysts, the media and others. Any statements made in this news release about an action, event or development, are forward-looking statements. Such statements are based upon assumptions that in the future may prove not to have been accurate and are subject to significant risks and uncertainties. Such statements are subject to a number of assumptions, risks and uncertainties, many of which are beyond the control of the Company. These risks and others are included from time to time in documents we file with the Securities and Exchange Commission, including but not limited to, its Form 10-Ks, Form 10-Qs and Form 8-Ks. Other unknown or unpredictable factors also could have material adverse effects on our future results. Accordingly, you should not place undue reliance on these forward-looking statements. Although the Company believes that the expectations reflected in the forward-looking statements are reasonable, it can give no assurance that its forward-looking statements will prove to be correct. Investors are cautioned that any forward-looking statements are not guarantees of future performance and actual results or developments may differ materially from those projected. The forward-looking statements in this press release are made as of the date hereof. The Company undertakes no obligation to update or correct its own forward-looking statements, except as required by law or those prepared by third parties that are not paid by the Company. The Company's SEC filings are available at http://www.sec.gov.

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