United States, Ca... "Overview The goal of Freedom Motors is to manufacture and distribute compact, lightweight, low emissions, highly efficient rotary engines using new technology and patented designs. These engines specifically address the increased air and water pollution regulations and will contribute to a cleaner environment The Company's production ready 530 cc rotary engine is a low cost, low emission replacement for two-stroke engines in a $2 billion / yr. recreational engine market. The 530 series engine can also replace four-stroke engines where compact power, emissions, fuel consumption, and multi-fuel capabilities are important. Initial applications include personal watercraft, auxiliary power units and hybrid electric vehicles. Recent tests by the California Air Resources Board confirm that the Rotapower engine operating with gasoline produces less than 1% of the emissions of comparable two-stroke piston engines. The Rotapower engine uses a fuel delivery system that eliminates the highly carcinogenic particulates produced by direct fuel injected diesel engines and even the new lower emissions two-stroke engines. Manufacturers have ordered engines for testing in watercraft, hybrid vehicles, auxiliary power units, and co-generation applications. The Company has received letters of intent to purchase 575,000 Rotapower engines. The real problem that Freedom Motors is addressing with its new engine is actually a health issue. It is now well known that increased air and water pollution is contributing to serious health problems (respiratory and other). This has spurred the passage of more stringent regulations and restrictions regarding air and water quality throughout the world. The engine developed by Freedom Motors has proven itself to meet or exceed the environmental requirements of new legislation and will prove to be an answer to key health issues in the future. Since June 1,1999, the Tahoe Regional Planning Agency (TRPA) has banned most two-stroke engines in Lake Tahoe, California due to concerns of water pollution. In New Delhi, India, the Supreme Court has banned over 70,000 two-stroke powered motor scooters because they cause 75% of that city's health-threatening emissions. These moves are unprecedented; as they do not limit the amount of emissions a source can produce but rather eliminate the source. The EPA estimates that two-stroke engines in the marine market generate the equivalent of forty times the pollution of the Alaskan Valdez oil spill on the waterways of America every year. Environmental agencies worldwide are demanding drastic reductions in two-stroke emissions Soon, the $10B annual world market utilizing two-stroke engines will be faced with the decision of extinction or the incorporation of a different, cleaner source of power. In July 1998, the California Air Resources Board held the first public hearings on the impact of the carcinogens and harmful particulates in diesel emissions. Hong Kong also determined that in several high traffic areas, diesel emissions are responsible for over 70% of the respiratory problems. The concern in the area of diesel engine emissions is becoming as stringent as those concerning the two-stroke engine. However, the weight of the diesel engine has eliminated its use in portable or recreational applications. Two-stroke piston engines were attractive because they offered a simple, compact, inexpensive source of power. The current commercial alternative to a two-stroke engine is a four-stroke piston engine. Marine four stroke piston engines weigh 35% more than their two-stroke counterpart, employ four times the moving parts and cost 25 to 30% more to produce. Diesel engines are often used where diesel fuel is preferred for safety or availability. The Freedom Motors Rotapower engine is designed to meet any two or four stroke-cycle engine requirements. Market Entry FREEDOM MOTORS acquired the exclusive rights to the Rotapower engine, an existing alternative that is ready for commercialization. This engine is: Based on proven, inexpensive technology - the core technology was acquired from Outboard Marine Corporation which produced the only Wankel rotary engine ever manufactured in volume in the US. OMC developed this technology and produced 15,000 engines in the 1970's in anticipation of stricter emission standards. These engines collectively accumulated millions of hours in operation. Manufacturing cost comparisons performed by OMC proved that the rotary engine was cost competitive with their simplest two-stroke engine. Patented Technology - advanced proprietary improvements to the core technology, included in the rights acquired by the Company, have enhanced reliability, improved fuel consumption and dramatically lowered emissions. This combination of solid historical development coupled with recent technical innovation has resulted in an engine, which has demonstrated superior emissions performance in recent tests verified by the California Air Resources Board (CARB). Exit Strategy The Freedom Motors exit strategy is to initiate a public offering of Freedom Motors stock before the end of 1999 and thus provide investors the opportunity to see their stock value increase substantially concurrent with the opportunity to sell stock into the public market. Capital Use Once funding is received, Freedom Motors will enter into volume production and marketing of its 530cc series engines. The Company will also begin production of the multi-rotor models and develop a 150cc displacement prototype engine that has been identified as the ideal size for auxiliary power units (APU's), by a major supplier in the telecommunications industry. Management Dr. Paul Moller - Chairman of the Board - Dr. Moller founded the Company and has served as the company's President since it's formation. He holds a Masters in Engineering and Ph.D., from McGill University. Dr. Moller was a professor of Mechanical and? Aeronautical Engineering at the University of California, Davis, From 1963 to 1975, where he developed the Aeronautical Engineering program. In 1972 he founded SuperTrapp Industries and was CEO as SuperTrapp became the most recognized international name in high-performance engine silencing systems. SuperTrapp Indus...
Chief Executive Officer