american electric automobile

[jhnkng@aol.com (JhnKng)]

TurboPix.net Initiates Coverage Of
AEAC  (American Electric Automobile Company, Inc.)


KEY FACTS:
Business: Specialist in the manufacture and distribution of Electric Passenger
Vehicles
Listed: NOB Non-OTC
Symbol & Company News: http://www.pcquote.com/cgi-bin/getquote.exe?ticker=AEAC
52 week range: $0.60 - $3.25*
Recent Price: $1.81*
Shares Out: 2,589,866*
Approx. Float: 1,266,000*
Market Cap: $8.25 million
*Based on a 3:1 reverse split effective April 5, 2000
Website: www.aeaci.com



- Government environmental legislation and dwindling natural resources demand
Electric Passenger Vehicles (EVs).

- Operating and maintenance costs of about 1.5 cents per mile serve as a strong
incentive for new car buyers. The 1.5 cent per mile cost is roughly the same as
paying 20 cents for a gallon of gas.

- American Electric Automobile's technological innovations and production
methods have for the first time addressed the broad market for EVs by achieving
a price range that makes economic sense.

- AEAC brings the product out of the luxury market and into a price range
attractive to a large segment of the population.  Purchase price $17,000 to
$22,000

- Joint venture with China Electric Auto, Ltd. to manufacture and distribute
EVs in China provides access to a huge market.

- Retail / Fleet sales of EVs to be based in San Diego spearheading the
California zero-emission vehicle mandate.



OVERVIEW:

The Clean Air Act Amendments of 1990, the National Energy Policy of 1992, and
Executive Order 12844 which accelerates the alternative fuel purchases by the
federal fleet set the stage for an extensive development in alternative fuel
and zero emissions vehicles.

The state of California has mandated the provision that 10% of all vehicles
manufactured by major auto makers be Zero-Emission Vehicles (ZEV) by the year
2003.

Countries such as China have also recognized the need for Electric Vehicles
mandating that 100,000 of the 1 Million vehicles purchased between now and
2010. Additionally, China has outlined a goal that the government would
purchase 20% of their business fleet as Electronic Vehicles (EVs).

American Electric Automobile Company has developed a clear outline of the
opportunities and strategies for capitalizing on the development of zero
emission and super low emission vehicles.

The vehicles are economically priced in the $17,000 to $22,000 range. The
standard bodies and off-the-shelf motors would be combined with a custom
proprietary computerized electric drive controller. Overall, the Company's
vehicles provide a superior driving experience achieved through a stylish,
functional and economic approach to the EV market.

American Electric Automobile is a market driven company. Technology has been
used to achieve performance but design has been used to develop a concept that
will be attractive to the market on many levels. Their cars appeal to consumers
that are interested in supporting "Green Products", with low operating costs,
and design concepts that appeal to the 25 to 35 year old driver as well as
mature adults.



HISTORY:

American Electric Automobile Company, Incorporated was chartered May 6, 1996 as
a Delaware Corporation. On October 17, 1996, the Company purchased the assets
and business of the San Diego Electric Automobile Company, which had been
successfully converting automobiles to electric power since 1989. American
Electric acquired all of the outstanding stock of the California Electric
Automobile in June of 1996.

The Company is currently a 45 percent owner of a joint venture, American
Electric Automobile Company (Asia), Inc. or "EVASIA", which is developing the
EV market strategy for Asia. EVASIA signed a contract with an electric vehicle
corporation in the Guangdong Province of China, Guangdong Vick Wei Electric
Vehicle CP. Ltd.

The EVASIA joint venture will receive a share of profits of the vehicles sold
in China. Along with the rights to market the vehicles outside of China EVASIA
also has the exclusive rights to market the China built vehicles in North and
South America. 




BUSINESS AND PRODUCTS:

Recently, American Electric Automobile Company, in conjunction with its wholly
owned subsidiary, California Electric Automobile opened a design center and
showroom in downtown San Diego, featuring their custom-designed vehicles. The
Company will produce three specific categories; SUV, Retrofits and Compacts. A
full manufacturing facility capable of production of 50 cars per month is
planed to operational in the third quarter of 2000. 

Currently, a joint venture prototype model for the Chinese market is near
completion. This prototype will be manufactured in conjunction with a major
Chinese automobile company. 

One of the most popular vehicles ever sold in the U.S. was the VW Beetle. The
1970's design is still being produced in Mexico and while the gas version
cannot be imported, the company is working to market an EV version of this
classic VW model. In the compact category, the company will produce a 2-door
and 4-door model based upon the Hyundai Accent or equivalent model and the VW
Cabriolet. With the completion of its current round of financing the company
will open its continuous production factory facility to meet the demand for two
of its vehicles. The vehicles will be priced in the $17,000 to $19,000 range. 



MARKET:

The company has chosen DC technology; standard components, and a proprietary
fine-tuned controller to achieve the range and driving performance desired at
an affordable price. Most manufacturers have chosen the more expensive A/C
technology with stated future prices near the $35,000 range. But AEAC's
strategy allows the company to bring a vehicle to market at a significantly
lower price than the other currently available models. 




MANAGEMENT:

Dr. Edward F. Meyers has been the Chairman and Director of the Company since
1996, while also residing as President of California Electric Automobile
Company since 1995. Mr. Meyers was a Director of William Lyon College in San
Diego and Treasurer/Trustee of Beacon College in Washington D.C. between 1981
and 1983.

Gary G. DeGano is the President, CEO and Director of the company since August
1997. Mr. DeGano has been the President of Incremental Data since March of
1997. Between 1995 and 1996 he directed the investor relations for Exten
Ventures, a public company. From 1986 to 1994, he was President and CEO of Sun
Harbor Financial Resources, a publicly traded full service mortgage banking
firm, which he cofounded. 

Dr. Gary L. Jackson has been Vice President of Research since December 6, 1999.
Between December 5, 1996 and December 6, 1999 he was a Director of the Company.
He received his Ph.D. from the University of Arizona in 1977 in Electrical
Engineering with a Physics minor. Since that time has been employed by General
Atomics, San Diego, CA. He has made numerous contributions to the international
fusion effort, particularly in the areas of plasma wall interactions and
tokamak operations. Jackson has been active in the field of electric vehicles
for 27 years, beginning with the construction of his first electric vehicle in
1969. Dr. Jackson is committed to electric vehicles and their implementation in
America's transportation infrastructure.




FINANCIAL STATUS:

AEAC is a development-stage company with nominal revenues to date. The company
has no long-term debt. A Form 10 is filed and pending with the SEC. In March
2000 a 3 for 1 reverse split approved which is effective April 5, 2000.



SUITABILITY:

American Electric Automobiles Company, Inc. is on the forward edge for the
manufacturing and retail sales of Electronic Passenger Vehicles and gasoline
conversions due to the:

- Proven ability to manufacture EVs and convert gasoline powered vehicles.

- First EV manufacturer to achieve a price target that meets the needs of a
large number of consumers.

- Showroom opened for increased sales of EVs.

- Completing prototype model for Joint Venture with Chinese Automobile Company.



LATEST COMPANY NEWS RELEASE:

AMERICAN ELECTRIC AUTOMOBILE COMPANY, INC. NEWS RELEASE

America Electric Automobile's China EV development project in final Phase I
testing.

SAN DIEGO, June 7, 2000 (BUSINESS WIRE) -- American Electric Automobile Company
Inc. (OTC "AEAC") has announced that the company's hybrid powered automobile
designed for the company's joint venture in China is now in final design
testing stage. This automobile is targeted for use in a number of China's major
cities to assist in reducing pollution from gasoline powered automobiles. The
final steps of the First Phase of the development cycle include extensive road
testing and final design and engineering adjustments. 



Edward Myers, Ph.D., Chairman of the American Electric Automobile Company
stated that, " This vehicle has the potential to satisfy the estimated Chinese
requirement for of up to 100,000 Electric Vehicles needed to serve the public
transportation market in China. The proposed immediate use of the present model
will be to replace the gas-powered taxicabs in Beijing. The automobile is
designed to have a range of up to 250 miles per use cycle by combining the
company's electric drive technology with a gasoline powered on board battery
recharging system."


American Electric Automobile's conversion of an automobile produced, in China,
by the Number One Automobile Group to a very low emission vehicle has been
divided into a three-phase development program. Phase One is the design of the
conversion procedure and the production of one prototype and the road testing
of that vehicle. This phase of the project is being carried out in the
company's San Diego design and Engineering center.


Phase Two will be the construction of two prototypes in China to serve as the
final production models. Phase Three will be establishing the production system
for production by American Electric Automobile Company (ASIA), the company's
joint venture in China.


Presently, countries such as China have recognized the need for Electric
Vehicles The Chinese government has made it a priority to reduce pollution in
Beijing and other smog engulfed cities by replacing gas powered vehicles with
low emission and zero emission modes of transportation. China's new five-year
plan calls for approximately one in every five (20%) vehicles produced in China
to be an electric vehicle. 


American Electric Automobile Co. has developed strategies for capitalizing on
the development of zero emission and very low emission vehicles in China, South
East Asia, and the U.S. The company's vehicle development strategy is based on
using standard bodies from other automobile companies. The company's designs
include the use of fully functioning air conditioning and heating systems
combined with use of readily available off-the-shelf electric motors and drive
train elements. These are integrated with the company's custom computerized
electric drive controllers. Models for the U.S. market are priced in the
$17,000 to $22,000 range. 


Safe Harbor for Forward-Looking Statements: 


This press release contains forward-looking statements within the meaning of
Section 21E of the Securities Exchange Act of 1934 that are not historical
facts and information. These statements represent the Company's intentions,
expectations and beliefs concerning future events, including, among the things,
expectations and beliefs with respect to future financial and operation results
and development efforts of the China E.V. project.


The Company wishes to caution and advise readers that these statements involve
risks and uncertainties that could cause actual results and outcomes for future
periods to differ materially from any forward-looking statement or views
expressed herein. The Company's financial performance and the forward-looking
statements contained herein are further qualified by other risks including
those set forth from time to time in the documents filed by the Company with
the Securities and Exchange Commission, including the Company's recent Form
10SB Registration Statement, and its most recent quarterly report on Form
10QSB.