Ciotech up sign DaimlerChysler

Citotech Systems Inc. has entered into a proprietary rights agreement with DaimlerChrysler Corp. to develop automotive engine starter/restarter technology that could reduce the cost and weight of future vehicles, to provide increased function and improved fuel economy, and to reduce emissions.

Citotech will grant to DaimlerChrysler certain intellectual property rights with respect to its proprietary information, including the Microstart engine starting system. Accordingly, Citotech entered into a license agreement with the owner of intellectual property which authorizes it to enter into the proprietary rights agreement.

Microstart is both an apparatus and a method for starting an internal combustion engine. It eliminates the need for a starting motor/flywheel arrangement and significantly reduces the size and power supply required from the vehicle battery. Engine starts with this new system will not require battery power for engine cranking. Microstart technology would allow for the automotive engine to be turned off at idle and when the vehicle is stopped, resulting in greater fuel economy. The engine will restart and the system will operate in a manner totally transparent to the driver.

Citotech is continuing to work towards the acquisition of the intellectual property and continues to engage in discussions with the Canadian Venture Exchange and the British Columbia Securities Commission regarding details of the proposed transaction.