China TMK Battery Systems Inc. Signs Distribution Agreement with US based Alexis Power Supply, Inc.
SHENZHEN, China, July 1 /PRNewswire-Asia-FirstCall/ --
-- Marks major milestone in TMK's strategy to become a premier supplier of
Ni-MH based "intelligent battery," back-up power supply systems
-- Applications include telecommunications, solar, railroad and traffic
control systems
-- Market opportunity driven by need for new and replacement installations
of more reliable, less-toxic alternative to conventional lead-acid
batteries
-- Shipment of initial order expected to commence by October 2010
China TMK Battery Systems Inc. (OTC Bulletin Board: DFEL) ("TMK" or the "Company") (formerly, Deerfield Resources, Ltd.), a China-based manufacturer and distributor of customized rechargeable battery solutions to global consumer product companies, announced today that it has signed a 5-year, exclusive distribution agreement with Nevada-based Alexis Power Supply, Inc. ("Alexis Power") and has commenced commercial production of proprietary, rechargeable Nickel Metal Hydride (Ni-MH) battery packs to be used as back-up power supply sources for multiple industrial applications. Alexis Power will market and distribute the batteries in the US and other targeted international markets. Shipment of the initial order under the agreement is expected to commence by October 2010.
TMK and Alexis Power will focus initially on the telecommunications market, by introducing large-frame NiMH-based back-up power solutions to replace existing lead-acid battery products, in addition to targeting new installations at both remote and central telecommunications facilities. Alexis Power, which was founded by industry veterans, maintains existing relationships with AT&T, Verizon, Frontier and other major telecommunication-focused distributors in the US and abroad. The management team has worked with TMK during the past two years to design and develop products focused on meeting specific customer applications. Alexis will leverage its distribution warehouse and service facility in Reno to sell TMK products directly and through a network of established dealers and distributors. TMK and Alexis Power are also collaborating to introduce new back-up power solutions to the solar, railroad and traffic control industries, where Alexis maintains existing relationships, in addition to performing market analysis on other synergistic verticals.
"We believe that this agreement with Alexis Power Supply marks a key inflection point in our business and is a critical step in our strategy to become a leader in the market for innovative new back-up supply solutions," stated Henian Wu, Chairman and President of TMK. "While we continue to witness increased demand for our environmentally friendly rechargeable batteries used in consumer products, this agreement represents our move to aggressively capitalize on large growth opportunities in the $5 billion global Ni-MH market. We expect that our new offerings, such as our intelligent, back-up battery solutions, which address new market verticals such as the telecommunication infrastructure grid, will meet a significant market need."
Alexis Power plans to price TMK's proprietary Ni-MH batteries at approximately 20% higher than lead-acid batteries and offer an eight-year warranty on them, based on the known benefits of Ni-MH batteries and additional benefits offered by TMK. Ni-MH batteries provide a superior return on investment, due to less maintenance costs and a significantly longer lifespan, for the Ni-MH end-user. Current industrial lead-acid batteries used for back-up storage are environmentally hazardous, have a relatively short life span ranging from 1.5 to 3.5 years, have high failure rates, especially in extreme temperature climates, and are a challenge to test and maintain. The need for alternative power solutions is significant due to the limitations of traditional power sources, ongoing cost to maintain and replace, and the mounting government pressure globally to address the issue of toxic waste disposal. Ni-MH batteries are non-toxic and have a life span of up to 10 years, making them an ideal replacement solution for a variety of mission critical applications. Furthermore, TMK's proprietary remote monitoring system will provide users with real-time access to power levels, thus improving the quality of maintenance and decreasing on-going service costs. The batteries will also be equipped with emergency shut-down during critical periods, which will protect the cells and increase life-span.
"We are pleased to have the opportunity to team up with China TMK Battery Systems, Inc. to deliver a superior, rechargeable Nickel Metal Hydride battery pack that we expect will establish the benchmark of back-up power solutions for multiple industries," commented Rex Dawson, Chief Executive Officer of Alexis Power Supply, Inc. "We believe that Ni-MH battery packs for the telecommunications industry, solar, railroad and now traffic control industries will help lead the revolution toward mass deployment of environmentally-friendly and longer lasting power solutions in the United States and other international markets."
As a result of the agreement, TMK plans to increase its maximum production capacity from 200,000 battery cells per day to 300,000 battery cells per day, with the addition of two Ni-MH production lines with operations starting in July 2010. Upon commencement of the two additional Ni-MH production lines, the Company expects to reduce the utilization rate of the current production lines from 90% to 75% in order to increase efficiency in its aggregate production.
About China TMK Battery Systems Inc.
Based in Shenzhen, PRC and founded in 1999, TMK manufactures and distributes high rate discharge Nickel Metal Hydride ("Ni-MH") multi-cell batteries in its manufacturing facility located in Shenzhen, China. TMK maintains a diverse roster of large, consumer-focused clients with major production facilities in China. TMK works with its clients throughout the product design cycle to develop and integrate reliable and long-lasting rechargeable power solutions for widely used consumer products, which include home appliances, cordless power tools, medical devices, multiple personal communication devices and electric bicycles segments. TMK is also leveraging its capabilities and experience to become a supplier of back-up power solutions to the telecommunications industry and for traffic lighting applications.
Cautionary Statement Regarding Forward-Looking Information
This press release may contain certain "forward-looking statements" relating to the business of China TMK Battery Systems Inc. and its subsidiary companies. All statements, other than statements of historical fact included herein are "forward-looking statements" including statements regarding: the impact of the Alexis Power agreement on TMK's business and operations; TMK's ability to fulfill its obligations under the agreement, including its ability to significantly increase its Ni-MH battery manufacturing capacity and quality control procedures in a timely manner to deliver products under the Alexis agreement; the general ability of the Company to achieve its commercial objectives, including the ability of the Company to become a leader in the market for innovative new back-up supply solutions; the business strategy, plans and objectives of the Company and its subsidiaries; and any other statements of non-historical information. These forward-looking statements are often identified by the use of forward-looking terminology such as "believes," "expects" or similar expressions, involve known and unknown risks and uncertainties. The Company's actual results could differ materially from those anticipated in these forward-looking statements as a result of a variety of factors, including those discussed in the Company's periodic reports that are filed with the Securities and Exchange Commission and available on its website (http://www.sec.gov )
For more information, please contact:
Company:
Toby Tu, Secretary
Phone: +86-755-2810-9908
Email: [email protected]
Simon Zhang
Email: [email protected]
Investor Relations:
HC International, Inc.
Ted Haberfield, Executive VP
Tel: +1-760-755-2716
Email: [email protected]
SOURCE China TMK Battery Systems Inc.
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