china tmk battery systems inc

8/7/2019 China TMK Battery Systems Inc

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China TMK Battery Systems Inc.Signs Distribution Agreement with

US based Alexis Power Supply, Inc.-- Marks major milestone in TMK's strategy to become a premier supplier of

Ni-MH based "intelligent battery," back-up power supply systems-- Applications include telecommunications, solar, railroad and traffic

control systems-- Market opportunity driven by need for new and replacement installations

of more reliable, less-toxic alternative to conventional lead-acidbatteries

-- Shipment of initial order expected to commence by October 2010China TMK Battery Systems Inc. (OTC Bulletin Board: DFEL) ("TMK" or the"Company") (formerly, Deerfield Resources, Ltd.), a China-based manufacturer anddistributor of customized rechargeable battery solutions to global consumer productcompanies, announced today that it has signed a 5-year, exclusive distribution agreementwith Nevada-based Alexis Power Supply, Inc. ("Alexis Power") and has commencedcommercial production of proprietary, rechargeable Nickel Metal Hydride (Ni-MH)battery packs to be used as back-up power supply sources for multiple industrialapplications. Alexis Power will market and distribute the batteries in the US and other targeted international markets. Shipment of the initial order under the agreement isexpected to commence by October 2010.

TMK and Alexis Power will focus initially on the telecommunications market, byintroducing large-frame NiMH-based back-up power solutions to replace existing lead-acid battery products, in addition to targeting new installations at both remote and centraltelecommunications facilities. Alexis Power, which was founded by industry veterans,maintains existing relationships with AT&T, Verizon, Frontier and other major telecommunication-focused distributors in the US and abroad. The management team hasworked with TMK during the past two years to design and develop products focused onmeeting specific customer applications. Alexis will leverage its distribution warehouseand service facility in Reno to sell TMK products directly and through a network of established dealers and distributors. TMK and Alexis Power are also collaborating tointroduce new back-up power solutions to the solar, railroad and traffic control industries,where Alexis maintains existing relationships, in addition to performing market analysison other synergistic verticals.

"We believe that this agreement with Alexis Power Supply marks a key inflection pointin our business and is a critical step in our strategy to become a leader in the market for innovative new back-up supply solutions," stated Henian Wu, Chairman and President of TMK. "While we continue to witness increased demand for our environmentally friendlyrechargeable batteries used in consumer products, this agreement represents our move to


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aggressively capitalize on large growth opportunities in the $5 billion global Ni-MHmarket. We expect that our new offerings, such as our intelligent, back-up batterysolutions, which address new market verticals such as the telecommunicationinfrastructure grid, will meet a significant market need."

Alexis Power plans to price TMK's proprietary Ni-MH batteries at approximately 20%higher than lead-acid batteries and offer an eight-year warranty on them, based on theknown benefits of Ni-MH batteries and additional benefits offered by TMK. Ni-MHbatteries provide a superior return on investment, due to less maintenance costs and asignificantly longer lifespan, for the Ni-MH end-user. Current industrial lead-acidbatteries used for back-up storage are environmentally hazardous, have a relatively shortlife span ranging from 1.5 to 3.5 years, have high failure rates, especially in extremetemperature climates, and are a challenge to test and maintain. The need for alternativepower solutions is significant due to the limitations of traditional power sources, ongoingcost to maintain and replace, and the mounting government pressure globally to addressthe issue of toxic waste disposal. Ni-MH batteries are non-toxic and have a life span of

up to 10 years, making them an ideal replacement solution for a variety of mission criticalapplications. Furthermore, TMK's proprietary remote monitoring system will provideusers with real-time access to power levels, thus improving the quality of maintenanceand decreasing on-going service costs. The batteries will also be equipped withemergency shut-down during critical periods, which will protect the cells and increaselife-span.

"We are pleased to have the opportunity to team up with China TMK Battery Systems,Inc. to deliver a superior, rechargeable Nickel Metal Hydride battery pack that we expectwill establish the benchmark of back-up power solutions for multiple industries,"commented Rex Dawson, Chief Executive Officer of Alexis Power Supply, Inc. "Webelieve that Ni-MH battery packs for the telecommunications industry, solar, railroad andnow traffic control industries will help lead the revolution toward mass deployment of environmentally-friendly and longer lasting power solutions in the United States andother international markets."

As a result of the agreement, TMK plans to increase its maximum production capacityfrom 200,000 battery cells per day to 300,000 battery cells per day, with the addition of two Ni-MH production lines with operations starting in July 2010. Upon commencementof the two additional Ni-MH production lines, the Company expects to reduce theutilization rate of the current production lines from 90% to 75% in order to increaseefficiency in its aggregate production.

About China TMK Battery Systems Inc.

Based in Shenzhen, PRC and founded in 1999, TMK manufactures and distributes highrate discharge Nickel Metal Hydride ("Ni-MH") multi-cell batteries in its manufacturingfacility located in Shenzhen, China. TMK maintains a diverse roster of large, consumer-focused clients with major production facilities in China. TMK works with its clientsthroughout the product design cycle to develop and integrate reliable and long-lasting


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rechargeable power solutions for widely used consumer products, which include homeappliances, cordless power tools, medical devices, multiple personal communicationdevices and electric bicycles segments. TMK is also leveraging its capabilities andexperience to become a supplier of back-up power solutions to the telecommunicationsindustry and for traffic lighting applications.

Cautionary Statement Regarding Forward-Looking Information

This press release may contain certain "forward-looking statements" relating to thebusiness of China TMK Battery Systems Inc. and its subsidiary companies. Allstatements, other than statements of historical fact included herein are "forward-lookingstatements" including statements regarding: the impact of the Alexis Power agreement onTMK's business and operations; TMK's ability to fulfill its obligations under theagreement, including its ability to significantly increase its Ni-MH battery manufacturingcapacity and quality control procedures in a timely manner to deliver products under theAlexis agreement; the general ability of the Company to achieve its commercial

objectives, including the ability of the Company to become a leader in the market for innovative new back-up supply solutions; the business strategy, plans and objectives of the Company and its subsidiaries; and any other statements of non-historical information.These forward-looking statements are often identified by the use of forward-lookingterminology such as "believes," "expects" or similar expressions, involve known andunknown risks and uncertainties. The Company's actual results could differ materiallyfrom those anticipated in these forward-looking statements as a result of a variety of factors, including those discussed in the Company's periodic reports that are filed withthe Securities and Exchange Commission and available on its website(http://www.sec.gov )

For more information, please contact:

Company:Toby Tu, SecretaryPhone: +86-755-2810-9908Email: [email protected]

Simon ZhangEmail: [email protected]

china tmk battery systems inc

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