MSCC Acquires Patented XYO Mechanical Balancing Technology Worldwide Automotive Rights

Motor Sport Country Club Holdings (MSCC) announced the acquisition of worldwide automotive rights for the patented XYO mechanical balancing technology from Perpetual Industries Inc. for US$2.5 million (US$500,000 in cash payable upon the Company raising funds through the sale of its securities and US$2.0 million in shares of MSCC valued at US$0.20 per share). In addition to the upfront license fee MSCC will pay Perpetual annual royalties based upon revenues earned from the sale and/or sub-licensing of products in the automotive industry using the XYO Technology with certain minimum royalties due on an annual basis.

“We are excited about the opportunity that the XYO Technology presents. Our primary focus will be on the promotion of the XYO Technology within the high performance automotive sector and ultimately the development of the XYO Racing brand,” said Claus Wagner, President and CEO of MSCC. “We believe the market potential surrounding the XYO Technology is quite extensive when you consider how many things rotate in an automobile. Everything that rotates needs to be balanced to prevent vibration which in turn causes a host of additional problems. Vibration adds up to wasted energy and more fuel consumption. By utilizing XYO Technology, we believe we can ultimately help create a more energy efficient automobile. For the racing industry this is a big advantage where more horsepower and less fuel consumption is the name of the game. We believe the XYO Technology backed by Perpetual’s expertise provides the best solution.”

The primary function of the XYO Technology is to reduce or eliminate vibration in any rotating part. The benefits to minimizing vibration
include: lower noise, less driver fatigue, and less wear and tear on parts; but, primarily it provides for a more energy efficient vehicle increasing the horse power while reducing fuel consumption.

“The automotive industry is obviously one of the biggest markets for the XYO Technology. We see our partnership with MSCC as the most efficient way to implement our XYO Technology into such a large market,” said Brent Bedford, President and CEO of Perpetual. “Our agreement with MSCC provides Perpetual with key contacts and experience in the automotive sector, while further adding value to the MSCC brand; truly a win-win deal.”

The XYO Technology can be applied to many parts within the automotive industry including: driveshafts, cooling fans, wheels, clutches, constant-velocity joints, flywheels, and internal combustion engine balancers.

Along with the worldwide distribution rights of the XYO Technology, MSCC also receives the rights to use the XYO Racing brand name (XYORacing.com). XYO Racing currently sponsors drivers in two different racing classes with plans to grow the sponsorship to at least four classes in Europe and North America.

About Motor Sport Country Club Holdings, Inc.

MSCC, home to the future “Ring of the Rockies” racetrack circuits, is the first Formula 1-inspired, multi-track planned country club in North America. Located less than an hour outside of Denver, Colorado, MSCC’s track plans are modeled after the famous Nuerburgring in Germany and are designed by the world-renowned Formula 1 racetrack architect, Hermann Tilke. Set amid 2,600 acres of breathtaking scenery, MSCC will offer a full array of Motorsports, top driving instruction, state-of-the-art clubhouse, generous amenities for the entire family and a limited collection of spacious home sites and luxury villas. MSCC will be an exclusive performance lifestyle racing resort where those with a passion for Motorsports can give their adrenaline a place to call home in a true luxury environment. For more information visit www.MotorSportCC.com or call (303) 459-7745.

About Perpetual Industries, Inc.

Founded in 2005, Perpetual Industries Inc. mission is to “perpetuate industry.” Primarily a research and development company, we provide value added technology to manufacturers. Our in-house engineering team leads a network of authorized designers, sales agents and manufacturers, in a variety of industries world-wide.