Detroit Electric and Proton Announce Strategic Partnership to Produce Affordable and Practical Pure Electric Vehicles

KUALA LUMPUR, Malaysia - Detroit Electric to produce and market full line of innovative Pure
Electric vehicles in US, UK, EU and China beginning 2010

Detroit Electric Holdings Ltd and PROTON Holdings Berhad today announced
a strategic partnership to mass produce Pure Electric Vehicles. Detroit
Electric will integrate its patented electric drive systems into the
vehicles.

Under the agreement, Detroit Electric will license two Proton vehicle
platforms and contract the company to assemble the electric vehicles that
will be marketed under Detroit Electric’s brand.

This agreement will provide Detroit Electric with its first manufacturing
base. The announcement came at a signing ceremony officiated by Malaysian
Prime Minister Datuk Seri Abdullah Ahmad Badawi.

“Today’s agreement with Proton will put Detroit Electric on the fast
track to bring a full line of innovative, practical and affordable pure
electric vehicles to the global market,” said Albert Lam, Detroit Electric’s
Chairman and Chief Executive Officer. “We chose Proton due to its
state-of-the-art production facility, commitment to research and development,
cost efficiency, and stable, high-quality workforce.”

By 2012, Detroit Electric plans to sell more than 270,000 Pure Electric
Vehicles in Europe, UK, China and the United States. The vehicles will be
priced between USD 23,000 and USD 26,000 for the city range model and between
USD 28,000 and USD 33,000 for the extended range model. Styling changes will
distinguish Detroit Electric’s vehicles from Proton’s existing line-up.

The vehicles will be based on Detroit Electric’s unique, patented
electric drive system that greatly reduces the electric motor’s size and
weight. The underlying Magnetic Flux Motor Technology and well-proven Lithium
Polymer Battery Technology allow pure electric vehicles to achieve a
single-charge range of 180km (111 miles) for the city range model and 325km
(200 miles) for the extended range model.

Detroit Electric is in the final stage of setting up two subsidiaries:
Detroit Electric Energy, which will produce the battery technology, and
Detroit Electric Advanced Propulsion Lab, which will manufacture the motor
and controller.

The Detroit Electric Advanced Propulsion Lab and Manufacturing Plant is
targeted to be in Malaysia close to the vehicle assembly facilities of
Proton. By 2012, the two production plants will produce more than 400,000
electric drive systems, creating thousands of jobs and supporting Detroit
Electric’s internal demands as well as third-party OEM’s needs.

Proton, which currently produces a total of 270,000 vehicles of various
models in Malaysia, edged out a host of international brands when its popular
Persona was named Malaysia’s Best Model of the Year in the 2008 Frost &
Sullivan ASEAN Automotive Awards. The company is also Malaysia’s largest
investor in research and development, spending USD 1.2 billion (RM4.6
billion) between 1993 and 2003.

“We are proud to be able to integrate our electric drive systems upon one
of the best cars out of Asia. Our customers around the world will enjoy the
level of quality and comfort offered by Proton, an award-winning
manufacturer,” said Lam.

Detroit Electric will be responsible for the homologation of the vehicles
and for vehicle certification in the U.S. and European markets, where models
are targeted to be sold in the first quarter of 2010 EU, UK, China and
closely followed the US. Detroit Electric will assume all warranty and
liabilities for the Electric Vehicles, while Proton will warranty the
vehicle’s build and standard components.

“Our vehicles will be reliable, meet all quality and safety requirements,
and quite simply outperform internal combustion engine vehicles of the same
class. They will be affordable as we look at the competitive market and come
without the polluting carbon emissions,” said Lam.

Today’s agreement also initiates the test and validation program in which
Proton will evaluate Detroit Electric’s electric drive system with the intent
to license the rights to distribute, market and sell vehicles under the
Proton brand in Asia.

Detroit Electric is looking to repeat similar contract production
partnerships with manufacturers in Europe and the United States. This will
allow the company to extend its range of models very quickly to meet demand
in the different automotive segments in these markets.

“When you are trying to redefine the automotive industry, you need to
bring many partners along,” said Lam. “Our contract manufacturing business
model will breathe new life into current manufacturers, leveraging existing
unutilized global resources and accelerating the technological advancement of
pure electric vehicles.”

On the current global downturn in automotive markets, Lam expressed
confidence that Pure Electric Vehicles will attract a diverse base of
consumers despite the tightening credit market, lowered consumer confidence,
unstable oil prices and stricter fuel economy regulations.

“Our target audience are those who purchase practical and affordable
vehicles. This makes our products fit the pockets of a very wide audience -
from professionals and executives, to mothers, students and small business
owners.”

About Detroit Electric:

Detroit Electric Holdings Ltd is one of the leaders of the electric car
revolution. We manufacture efficient and environmentally friendly, high
performance, long range Pure Electric Vehicles and drive-systems to the
global marketplace. Detroit Electric’s product plans range from high
performance sports cars to stylish sedans capable of driving over 320 km /
200 miles in a single charge.

Detroit Electric Holdings Ltd invented and patented the Magnetic Flux
Motor Technology for the motor drive train. The company also owns the
intellectual property for the Motor Controller Program. Since its launch,
Detroit Electric has been dedicated to developing new technologies and
establishing strategic partnerships that leverage existing manufacturing
capacities in the marketplace.

About Proton:

PROTON, established in 1983, is Malaysia’s largest manufacturer of
automobiles. With operations in key market centers from UK and Western Europe
to the Middle East, and across South-East Asia and Australasia, PROTON
produces cars to suit a range of consumer demands and preferences. The
offerings include versatile and reliable four-door family vehicles, two-door
hatchbacks for the young-at-heart, luxurious and stylish executive sedans, as
well as the world-renowned sports cars from Lotus.

PROTON’s inception as a key driver of national development has seen the
brand accelerate its learning curve through technology transfer with
strategic partnerships and technical collaborations. PROTON cars are now
steadily on track to achieving the mission for the future, gearing up to
achieve the promise of a marque which build cars with passion and soul; cars
which are a delight to drive and a pleasure to own.

Source: Detroit Electric Holdings Ltd

Sean McCabe of Pinkston Group, +1-703-969-7975, Mccabe at pinkstongroup.com, for Detroit Electric Holdings Ltd