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Euro Group of Companies, Inc.: Eurospeed, Inc. Signs Exclusive Distributor for Colombia

^{Published on 2009-02-12 11:20:13, Last Modified on 2009-02-12 11:21:02 - Market Wire}
 

PORT CHESTER, NY--(Marketwire - February 12, 2009) - Euro Group of Companies, Inc. (PINKSHEETS: [ EGCO ]), announced today that Eurospeed, Inc., the Company's transportation products subsidiary, has entered a five year exclusive distribution agreement with LGTI, Inc. for the sale of Eurospeed products in Colombia. Under the terms of the agreement, Baldwin Park, California-based LGTI will make a non-refundable payment of $150,000 for the exclusive right to market Eurospeed products in Colombia, and is contractually obligated to purchase a minimum of 24,400 Eurospeed scooters and motorcycles over the term of the agreement. LGTI has placed its initial order for motor scooters, secured by an irrevocable, transferable letter of credit for $150,000.

Gary DeFilippo, Vice President of Eurospeed Operations, said, "We are very pleased with the addition of LGTI as a distributor and we continue to interview well qualified distributor candidates for other countries in Latin America and South America."

Eurospeed offers a full line of fuel efficient electric and gas-powered scooters, motorcycles, ATVs (all-terrain vehicles) and utility vehicles, imported from select contract manufacturers in China.

Euro Group of Companies, headquartered in Port Chester, New York, with offices in Shanghai, China, and Athens, Greece, is an operating company focused on three distinct and separate businesses -- communications products, transportation products and consumer electronics and appliances -- that management believes offer unusual opportunities for revenue and profit growth.

Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995: From time to time, information provided by the Euro Group (including but not limited to this release), statements made by its employees or information included in its filings with the Securities and Exchange Commission may contain statements, which are so-called "forward-looking" statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Act of 1934, as amended which are intended to be covered by the safe harbors created thereby. With respect to such forward-looking statements, Euro Group claims protection under the Private Securities Litigation Reform Act of 1995. The Company's results may differ significantly from those stated in any forward-looking statements. Forward-looking statements involve a number of risks and uncertainties, including, but not limited to, product demand, pricing, market acceptance, litigation, risks in product, and technology developments, and other risk factors detailed from time to time in the Company's Securities and Exchange Commission reports including, without limitations, its Form 10-KSB and Forms 10-QSB.