May 12, 1999
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Kühl Wheels LLC was formed on June 25, 1997 to commercialize an automotive wheel invented by Georg Braunschweiler, a Company cofounder. The Kühl Wheels technology is basic and compelling. This patent-pending technology enables a carmaker to realize a 20% weight saving (up to 40 lbs. per car) over conventional steel wheels at a substantial cost reduction.
Utility patents on the Kühl Wheels technology are pending in Switzerland, the United States of America and Internationally through the Patent Cooperative Treaty (PCT). The Company plans to license this technology rather than manufacture and sell wheels. In May 1999 the Company licensed its Kühl Wheels technology on a non-exclusive basis to Hayes Lemmerz International, the world's largest independent supplier of fabricated steel wheels to the automobile industry.
Kühl Wheels intends to distribute to its investors nearly all of its royalty income from licensing activities. The Company anticipates distributions beginning in 2001. By 2003, the annual distributions should equal or exceed the initial investment amount. $7,000 invested today should return more than $90,000 over the life of the patent (a net present value [NPV] of $33,000 at a discount rate of 10% per year).
Kühl Wheels has no employees and has retained Innovative Technology Licensing and Management Company, a California corporation ("ITLM") doing business as The Epilogics Group, to manage its day-to-day operations and perform all administrative, development, and marketing activities.
Kühl Wheels is located at 1484 Pollard Road, Suite 192, Los Gatos, CA 95032. The telephone number is (408) 379-5200.
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