OAI and its award winning manufacturing facility have a superb reputation for technological innovation, high quality, and a motivated and talented workforce led by a first class management team. This transaction strategically transforms Global Technovations into a substantial technology company. In September 1999, we sold substantially all of the assets of our automotive subsidiary, Top Source Automotive, Inc. ("TSA"), to OAI.

At that time, we exited the automotive speaker business because TSA, while generating cash, was a small, single product, one customer operation trying to compete in a consolidating industry. TSA's future as a stand-alone automotive industry supply company was limited and the cash generated by the sale was needed to fund the expansion of our MotorCheck™ On-Site Analyzer business ("OSA-II"). OAI, by contrast, is one of the top two automotive speaker producers in North America, and is developing speaker sales into other vertical markets by adapting its proprietary technology for new applications.

The OAI transaction is clearly a strategic rather than synergistic acquisition for GTI. It provides us with a significant business platform from which to build our Automotive and Diagnostic Technology Strategic Business Units ("SBUs"). Further, it provides our shareholders with an investment in a large, stable and growing audio business, along with a high potential emerging diagnostic technology.

To use the vernacular of investment bankers, GTI now can no longer be characterized, by the financial community, as a one-product, 'venture' type Company. The acquisition of OAI provides GTI with significant credibility and enables us to continue realizing the potential of the OSA-II technology while building on the stability of the audio business.

The opportunity at hand to leverage TSA's creativity and audio design engineering, with OAI's audio technology and production capabilities, significantly changes the complexion of GTI's interest, and future involvement, in the audio technology market. This acquisition strengthens GTI's underlining shareholder value and gives us the size, stature and financial credibility needed to conduct OSA-II business with large players in our target markets. The acquisition also enhances shareholder security by limiting downside risk, while providing greater upside potential.

Both of the GTI SBUs will be able to maintain their focus and commitment to their respective industry applications, expand their business, and further build on their relationships with international and domestic companies. The management team of both GTI and OAI look forward to maintaining and enhancing customer service and support while increasing shareholder value.

The patented MotorCheck™ on-site analyzer allows users to attain "lab quality" fluid analysis on-site, and in less than six minutes. The technology is unique in that it does not require an expensive professional trained lab technician to operate the instrument or to read/understand the diagnostic report.

The market need for this unique instrument was driven by the slow response time of independent labs. In many cases, by the time lab reports were received, the vehicle had either left the maintenance center or already experienced an avoidable catastrophic failure.

By offering on-site oil analysis, diagnostic reports and repairs can be made virtually simultaneously, avoiding costly delays or breakdowns.

We have identified over 24 industry/market applications for our proprietary oil analysis technology and we are currently adapting our base technology to address each of these specific market applications. This "flanker strategy" will not only allow us to become more responsive to the dictates of the market, it also creates barriers to entry for future, potential competitors.

Oil spills pose both an environmental and safety problem. Traditional cleaning solvents pose similar problems. Our unique MightyClean 2000™ product line offers a safe, environmentally friendly and cost efficient means to remediate surfaces contaminated by oil, fuel, and other hydrocarbon-based products.

The Company remains committed to develop or acquire technologies that address specific problems experienced by our customer base. Via strategic alliance, we will commercialize our technologies so as to exploit the marketing and sales strengths of our partner so as to keep our operating overhead to a minimum.

Global Technovations, Inc. is focused on solving the problems of the future, with technology today.