WASHINGTON, DC (June 26, 1996)-Gov. Don Sundquist joined President Islam Karimov of the Republic of Uzbekistan and Dr. Wayne Jones, president of American Engineering Inc. of Brunswick, TN, today to witness the official signing of a joint venture agreement worth approximately $1 billion to the Tennessee engineering management company.

American Engineering Inc. will provide engineering management services as a partner to the Republic of Uzbekistan in the conversion of 208,000 government-owned vehicles from gasoline fuel to compressed natural gas (CNG). The CNG conversion kits, provided through American Engineering Inc., its partners and suppliers, will initially be assembled and later manufactured under license in Uzbekistan.

Additionally, the company will construct a network of approximately 300 refueling stations throughout the Republic of Uzbekistan.

"Tennessee companies are exporting products and services as never before," said Gov. Sundquist. "Joint venture and licensing agreements, like this one between American Engineering Inc. and the Republic of Uzbekistan, provide tangible benefits for both sides.

"Tennessee's technology-based exporters are finding opportunities in emerging economies, as well as traditional export markets. Support for international trade and technology transfer at the state level goes a long way in opening doors to new markets for small and medium-sized companies looking for expanded sales and increased profits."

The CNG conversion project will take five years to complete. Within this period, the Republic of Uzbekistan, rich in natural gas resources, expects to save between $3-$5 billion in fuel costs.

The Republic of Uzbekistan is a former Soviet Republic located in central Asia between the Caspian Sea and the foothills of the Himalayas. Under President Islam Karimov, the Tashkent-based government of the Republic of Uzbekistan is pursuing an aggressive privatization policy involving the development of joint venture opportunities with foreign partners.

Among invited guests joining Gov. Sundquist in witnessing today's signing ceremony were officials from the Republic of Uzbekistan, including Prime Minister Sultanov and His Excellency Fatikh Teshabaev, Ambassador to the United States; Hazel O'Leary, Secretary of the U.S. Dept. of Energy; members of the Tennessee Congressional Delegation; Lev Eynisfeld, vice president, Sales and Marketing, American Engineering Inc.; Alex Syachin, Tashkent representative, American Engineering Inc.; and William A. Dunavant Jr., commissioner of the TN Dept. of Economic and Community Development.