J.T. Granatelli Lubricants, Inc. Develops New Car Dealer Package
6 November 1998
J.T. Granatelli Lubricants, Inc. Develops New Car Dealer Package Featuring the Company's SuperSeal Liquid Tire SealantInitial California Roll Out Offers Potential Annual Gross Sales of $18,900,000
CAMARILLO, Calif., Nov. 6 -- J.T. Granatelli Lubricants, Inc.
(OTC Bulletin Board: LUBR) announced today that its SuperSeal liquid tire
sealant will be offered as a new car dealer package to include permanent tire
flatproofing, a lifetime warranty and a 4 oz. bottle of SuperSeal for the
customer's use in protecting bicycle tires. The estimated retail value of the
package is $80-120, depending upon the type of vehicle.
The test launch of the dealer package is currently underway through new
car dealers in Southern California, with plans to expand the program
nationally and internationally.
The SuperSeal dealer program provides for installation and financing prior
to delivery of the new vehicle similar to optional packages such as upgraded
sound systems and special wheels. SuperSeal will also be offered through the
dealer's F&J and Parts departments. The point-of-purchase presentation will
include display holders and brochures, highly-visual mobile displays which
serve to leave floor space open, and optional demonstration displays and
videos.
A recent study shows that in California approximately 40% of new vehicles
are sold and 60% are leased, with each dealer moving an average of 300
vehicles per month through sales and lease programs combined. Based on dealer
response to the program, it is projected that approximately 15% of the
estimated 3,500 new car dealers in California (525 locations) will sign up for
the program. The response also indicates that approximately 35-40% of
customers will want SuperSeal installed for the safety and security that the
product offers.
Using the response numbers, but only projecting a very conservative 25%
customer acceptance level, the SuperSeal dealer program in California offers
the potential for generating gross sales of approximately $3,000 per dealer
per month, with annual gross sales of approximately $18,900,000. Based on
research data issued by the federal government covering new vehicle sales and
leasing, a nationwide roll out of the program should account for potential
annual gross sales equal to at least 10 times the volume of California or
$189,000,000.
J.T. Granatelli Lubricants, Inc. manufactures, markets, sells and
distributes its proprietary line of motor oil, general household and motor
vehicle lubricants and contiguous products to the global marketplace. J.T.
Granatelli Lubricants, Inc. trades publicly under the symbol LUBR on the OTC
Bulletin Board.
Safe Harbor Statement under the Private Securities Litigation Reform Act
of 1995: Statements in this news release looking forward in time involves risk
and uncertainties, including primary customer order rates, cancellations, late
delivery of customer components which cause production delays, dependence upon
certain customers, dependencies upon key executives, viability of quarterly
results, single operating facility, competition, product liability risk,
control by management, limited trading market and volatility of stock prices,
foreign currency fluctuation, conflicts of interest, and other risk factors
detailed in the Company's applicable SEC filings.
