TAX.L Regulatory News (TAX)

25 July 2011

Eco City Vehicles PLC

("Eco City Vehicles", "ECV" or "the Group")

AGM statement and contract win

Tim Yeo, Chairman of Eco City Vehicles, the developer and supplier of eco-friendly commercial vehicles and the London licensed Mercedes Vito taxi, will make the following statement at the Group's Annual General Meeting later today:  

"The Group is pleased to announce that it has received an initial order for 10 new Euro V Mercedes Vito taxis from Computer Cab plc (ComCab), which is part of the Singapore-based ComfortDelgro Corporation Limited. This is the first ever contract placed by ComCab with ECV and represents a significant breakthrough for the Vito into one of the largest London-licensed taxi fleet operators, with about 3,000 vehicles operating on their London circuit.

The new vehicles, to be delivered shortly, are earmarked for ComCab's new rental fleet consisting exclusively of top-of-the-line Vito taxis. This fleet has been launched as part of ComCab's drive to introduce more environmentally-friendly and cost-efficient vehicles to the London taxi market. The Group is confident of receiving further orders from ComCab in due course.

Further to the announcement of 1 July, the Group has also completed the transfer of responsibility for second-stage manufacturing of the Vito taxi to Mercedes Benz. There are no additional cash costs associated with the transfer. The move will enable the Group to reduce its annual cost base and measures to deliver savings of approximately £0.5 million have already been implemented.

As announced previously, while the first half was highly challenging, trading conditions have shown some encouraging signs of improvement recently following the launch of the Euro V version in April 2011. With the 15-year age limit for London licensed taxis and the European Union "Euro V" vehicle emission legislation coming into force from next year, the Board looks to the future with cautious optimism."

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