October 27, 1999
Marietta, GA - U.S. Technologies Inc., (the "Company") announced that it has been approved by the State of Florida, Pride Enterprises and the Federal Bureau of Justice Assistance to operate a new Prison Industry Enhancement (PIE) Project at the South Bay and Moore Haven Correctional Facilities, managed by Wackenhut Corrections Corporation in south-central Florida.
The "Company" has been approved to manage various aspects of motorcycle production and assembly, including the painting, polishing, fiberglass fabrication and final assembly for American Quantum Cycles, Inc., trading under (AMEX:AFV). American Quantum employees will take direct responsibility for quality control at these facilities.
U.S. Technologies Inc., today further announced that it has entered in separate multi-year contracts with American Quantum Cycles and "Wackenhut Corrections", thus completing the previously announced letter of intent, whereby American Quantum will co-manage with the "Company" certain aspects of its production and assembly operations to take place in two separate Wackenhut correctional facilities in South Bay and Moore Haven, Florida.
The "Company" will, in different phases of development and operation, paint and polish aluminum and stainless steel components, fabricate fiberglass, assemble and ship the motorcycles for American Quantum Cycles. It is expected that this project will employ, when fully operational, in excess of 300 inmates, which will make this PIE project one of the largest PIE operations in the country.
American Quantum Cycles recently went from trading OTC: BB to the AMEX as AFV, after securing $8.5 million in secondary financing. American Quantum Cycles is a new entrant into the world-wide motorcycle industry with a state-of-the-art engine, utilizing a patented four-valve head for greater torque and acceleration and producing lower pollutant emissions. Their dealer and Internet strategy for marketing and sales allows them to fully leverage cutting-edge information technology and the Internet to provide them with a competitive advantage in the worldwide motorcycle marketplace.
"This endeavor is a major undertaking between the 'Company,' American Quantum Cycles and 'Wackenhut Corrections.' All parties realize the tremendous benefits this project will provide all of the participants, especially the inmates who will learn marketable skills and work habits," commented Greg Earls, CEO of U.S. Technologies.
"We are excited about this new venture and look forward to replicating this labor model in future prison industries established by the 'Company.' Further, we are pleased with the support and enthusiasm the 'Company' has received from American Quantum and 'Wackenhut Corrections' concerning this new venture, recognizing that all parties will be contributing to the success of this project," added John P. Brocard, Executive Vice President of the "Company."
U.S. Technologies Inc., now based in Washington, DC, is a national outsourcing company, which solicits labor-intensive work from Fortune 1000 and other select companies, to be performed by its manufacturing subsidiary, Labor-to-Industry Inc. (LTI) or by its service subsidiary, Service-to-Industry Inc. (STI). The Company performs its work utilizing prison inmates under the guidelines of the Prison Industry Enhancement Program (PIE Program). The PIE Program, a federal program created by Congress in 1979, is designed to rehabilitate, educate and train inmates, and thereby provide them with marketable skills, through their employment with private sector industry.
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