Amerityre's Chinese OTR retread partner ahead of schedule

Jan. 31, 2007

Amerityre Corp. reports its Chinese licensee, Qingdao Qizhou Rubber Co. LTD, estimates it is approximately two months ahead of schedule in the construction of its OTR polyurethane elastomer retread facility in Shandong Province.

The construction project, started in September 2006, was originally targeted for completion in September 2007.

Qingdao has signed a license agreement to initially manufacture polyurethane elastomer retreads for three large-size tires used in mining operations, using Amerityre's retreading process.

The retread facility will have an estimated maximum production capacity of approximately 10,000 units and use between 7.7 million and 16.5 million pounds of polyurethane elastomer tread material based on the production mix.

Amerityre reports Qingdao also has expressed interest in entering into discussions to further expand its license agreement with the company to include complete pneumatic tire manufacturing using the company's patented manufacturing technology and proprietary chemical formulations.

Amerityre is assisting Qingdao with the design and purchase of the necessary manufacturing equipment and also is providing engineering and technical support to Qingdao to build and launch the facility consistent with the company's manufacturing processes.

Amerityre will be the exclusive supplier of polyurethane chemical materials to Qingdao for manufacture of products specified by the license agreements.