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April 01, 2009

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Detroit Electric And Proton Announce Strategic Partnership To Produce Affordable And Practical Pure Electric Vehicles

Detroit Electric to produce and market full line of innovative Pure Electric vehicles in US, UK, EU and China beginning 2010

KUALA LUMPUR - Detroit Electric Holdings Ltd and PROTON Holdings Berhad today announced a strategic partnership to mass produce Pure Electric Vehicles. Detroit Electric will integrate its patented electric drive systems into the vehicles.

Under the agreement, Detroit Electric will license two Proton vehicle platforms and contract the company to assemble the electric vehicles that will be marketed under Detroit Electric’s brand. This agreement will provide Detroit Electric with its first manufacturing base. The announcement came at a signing ceremony officiated by Malaysian Prime Minister Datuk Seri Abdullah Ahmad Badawi.

“Today’s agreement with Proton will put Detroit Electric on the fast track to bring a full line of innovative, practical and affordable pure electric vehicles to the global market,” said Albert Lam, Detroit Electric’s Chairman and Chief Executive Officer. “We chose Proton due to its state-of-the-art production facility, commitment to research and development, cost efficiency, and stable, high-quality workforce.”

By 2012, Detroit Electric plans to sell more than 270,000 Pure Electric Vehicles in Europe, UK, China and the United States. The vehicles will be priced between USD 23,000 and USD 26,000 for the city range model and between USD 28,000 and USD 33,000 for the extended range model. Styling changes will distinguish Detroit Electric’s vehicles from Proton’s existing line-up.

The vehicles will be based on Detroit Electric’s unique, patented electric drive system that greatly reduces the electric motor’s size and weight. The underlying Magnetic Flux Motor Technology and well-proven Lithium Polymer Battery Technology allow pure electric vehicles to achieve a single-charge range of 180km (111 miles) for the city range model and 325km (200 miles) for the extended range model.

Detroit Electric is in the final stage of setting up two subsidiaries: Detroit Electric Energy, which will produce the battery technology, and Detroit Electric Advanced Propulsion Lab, which will manufacture the motor and controller.

The Detroit Electric Advanced Propulsion Lab and Manufacturing Plant is targeted to be in Malaysia close to the vehicle assembly facilities of Proton. By 2012, the two production plants will produce more than 400,000 electric drive systems, creating thousands of jobs and supporting Detroit Electric’s internal demands as well as third-party OEM’s needs.

Proton, which currently produces a total of 270,000 vehicles of various models in Malaysia, edged out a host of international brands when its popular Persona was named Malaysia’s Best Model of the Year in the 2008 Frost & Sullivan ASEAN Automotive Awards. The company is also Malaysia’s largest investor in research and development, spending USD 1.2 billion (RM4.6 billion) between 1993 and 2003.

Detroit Electric will be responsible for the homologation of the vehicles and for vehicle certification in the U.S. and European markets, where models are targeted to be sold in the first quarter of 2010 EU, UK, China and closely followed the US. Detroit Electric will assume all warranty and liabilities for the Electric Vehicles, while Proton will warranty the vehicle’s build and standard components.

Electric Cars Europe (ECE) will distribute Detroit Electric vehicles in Europe The signing of the strategic partnership between Detroit Electric Holdings Ltd and PROTON Holdings Berhad today at the same time results in the establishment of a new European distributor for Detroit Electric Pure Electric Vehicles. Electric Cars Europe (ECE), a strategic and EV technology partner of Detroit Electric in Europe headed by CEO’s Willem van der Kooi and Hjalmar Engel, will start distributing Detroit Electric cars in Europe as of 2010.

Last year Detroit Electric and ECE already founded a solid partnership as part of which ECE acts as a supplier of EV technology to Detroit Electric. Detroit Electric will combine this technology in its future Pure Electric Vehicle platforms. Furthermore Detroit Electric will import ECE built electric vehicles to the US market as part of this mutual cooperation. In return Detroit Electric has selected ECE as its European distribution partner for the import of Detroit Electric Pure Electric Vehicles to the European continent as of 2010. ECE is currently exploring the European market place for potential distribution partners to establish a solid European wide network of local Detroit Electric distributors, to be operative beginning of 2010.

(March 30, 2009)

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