LOS ANGELES, March 5, 2007 (PRIME NEWSWIRE) -- Tank Sports (OTCBB:TNSP) today announced that it has successfully completed the major processes for its merger with Redcat Motors. Following the legal process of acquiring Redcat, Tank Sports has completed consolidating both companies into its ERP system.
Consolidating both the Tank and Redcat branches into one ERP system merges the vehicle lines, parts availability and accessories, accounting resources, supply chain and customer databases, which now contains approximately 580 dealers nationwide. This has also led to resource sharing of business partners in China and Mexico that will create more efficient business operations in the future. As a result of this consolidation, Tank Sports has successfully established two independent brand names, Tank and Redcat.
Besides the ERP system consolidation, Tank has also completed the merging of its human resources. The company has reduced staff by 10%, cutting its human resource expense by 15%. At the same time, the company has established new operational guidelines for both subsidiaries in order to ensure healthy growth and smooth operations for the future and good of the company.
About Tank Sports, Inc.
Tank Sports is a leading company that develops, engineers, and markets high performance on-road motorcycles and scooters, as well as 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 powersports products from China. The company has 5 regional warehouse locations and a network of more than 300 dealers. Redcat's monthly parts revenue is $70,000 and in 2005 the company's total revenue was $19,000,000. With a gross profit of $3.40 million, the company realized a net earning of approximately $643,000 in 2005.
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 ventures 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.