| Jincheng Power Machinery Co. announced today that | | | | electric powertrain for the Chinese market. As part of |
| it has signed a memo of cooperation with Mission | | | | this ongoing discussion, Jincheng Power is also |
| Motors, which could see the Chinese company link up | | | | considering a strategic investment in Mission Motors, |
| with the San Francisco firm to develop electric drive | | | | but nothing has been finalized." It is our understanding |
| systems for the emerging market and in other | | | | that this is a custom in Chinese business culture where |
| markets throughout the world. In the memo, Jincheng | | | | companies sign a document which explains that they |
| outlines its intent to become a major shareholder in | | | | are considering a business transaction. While nothing is |
| Mission Motors, and to also inject capital into the small | | | | final yet, and we should be point out that other reports |
| startup after it presents a three year plan to the | | | | appear to over-state the current situation, suggesting |
| Chinese company. For Mission Motors the move would | | | | that Jincheng has already acquired a majority interest |
| be valuable strategic partnership to gain a foothold in | | | | in Mission Motors, while in fact Jincheng merely hopes |
| China, which already has a booming two-wheeled | | | | to complete an investment in the San Franciscan |
| market and need for reduced CO2 emissions. "Mission | | | | company by the end of June this year. Jincheng is one |
| Motors has identified Jincheng Power as a potential | | | | of China's largest motorcycle engine manufacturers, |
| partner in the Chinese electric motorcycle market," | | | | and marks yet another series of moves by American |
| says Mission Motors' Jit Bhattacharya. "China is an | | | | electric motorcycle companies looking not only for |
| enormous market for electric two-wheelers with a | | | | funding, but also looking abroad for business |
| number of Chinese cities having banned | | | | opportunities. Just last month we reported that Zero |
| gasoline-powered china motorcycles and scooters. | | | | china Motorcycles closed a $5.5 million round of |
| We are exploring how we can leverage Mission | | | | investment, and Brammo also recently announced a |
| Motors' technology with Jincheng's strengths in high | | | | partnership with Jackie Chan's JCAM to distribute |
| volume, low-cost manufacturing to create a lower cost | | | | bikes in Asia. |