LOS ANGELES, Jan. 3, 2007 (PRIME NEWSWIRE) -- Tank Sports (OTCBB:TNSP) today announced that it has signed a definitive agreement with Darin and Michelle Oreman of Hexagon Financial, LLC to acquire LowPrice.com, Inc., an Arizona corporation d/b/a Redcat Motors, a power-sports equipment importer and distributor headquartered in Phoenix, Arizona whose business mainly focuses on off-road power-sports equipment.
Through the acquisition of Redcat, Tank will be able to strengthen off-road vehicle sales and increase market share. After the acquisition, Tank can fully utilize its manufacturing resources to improve the product cost, quality, and research ability of Redcat, as well as to support sales and service of its market, which includes more than 300 dealers nationwide. This acquisition will combine Tank's product supply chain and on-road sales network with Redcat's efficient management system and off-road sales network. This will improve both companies' competitiveness in the market.
The acquisition is an important part of Tank's "World Class Brand, Made in China" strategy, providing a combined dealer base of more than 500 dealers nationwide and a broader product offering. This acquisition will ensure continued progress towards Tank's goal of continuing to lead in the power-sports industry.
About Tank Sports, Inc.
Tank Sports is a leading company that develops, engineers, and markets high performance on-road motorcycles and scooters, off-road all-terrain vehicles (ATVs), dirt bikes and Go Karts through OEMs in China. It utilizes the so-called "China Concept" to participate in the $31.5 billion annually (data: Motor Industry Council) motorcycle/ATV market.
The Tank Sports, Inc. logo is available at http://www.primezone.com/newsroom/prs/?pkgid=3000
About Redcat Motors
Established in 2001, Redcat Motors is an importer and distributor of off-road power-sports products from China. The company has 5 regional warehouse locations and a dealership network of over 300 dealers. Important operational procedures are conducted online using a tier 1 ERP system, which includes ordering inventory from China, arranging ocean freights and shipments to U.S. contract warehouses. Redcat Dealers also place orders through the Company's website, and access availability of product and monitor inventory levels. Product offering includes ATV's & off-road motorcycles. Redcat has a revenue of $70,000 per month for parts, and in 2005 the company had a revenue of $19,000,000. With gross profit of $1.34 million, the company realized a net earning of approximately $643,000 in 2005.
About Hexagon Financial, LLC
Hexagon Financial is based in Phoenix, Arizona and was established in 2003 to provide venture capital and management support for high growth companies in niche markets nationwide.
Safe Harbor Statement
The foregoing news release includes numerous forward-looking statements concerning the company's business and future prospects and other similar statements that do not concern matters of historical fact. The federal securities laws provide a limited "safe harbor" for certain forward-looking statements. Forward-looking statements in this news release relating to business developments are based on the company's current expectations. The company's current expectations are subject to all of the uncertainties and risks customarily associated with a small business venture including, but not limited to, market conditions, successful product development and acceptance, competition and overall economic conditions, as well as the risk of adverse regulatory actions. The company's actual results may differ materially from current expectations. Readers are cautioned not to put undue reliance on forward-looking statements. The company disclaims any intent or obligation to update publicly these forward-looking statements, whether as a result of new information, future events or for any other reason.