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News

Corporate

Aug. 6, 2002

IMPCO Spins Off Its Fuel-Cell Subsidiary

Alternative fuel company IMPCO Technologies Inc. of Cerritos has spun off its subsidiary Quantum Fuel Systems Technologies Worldwide Inc.

By Toni Vranjes
        
        Alternative fuel company IMPCO Technologies Inc. of Cerritos has spun off its subsidiary Quantum Fuel Systems Technologies Worldwide Inc.
        Morrison & Foerster represented both the parent company and the subsidiary in the deal.
        Quantum was the research-and-development arm of IMPCO, but over time it evolved into an entity with a different business plan, explains Jon Atzen, of-counsel at Morrison's Los Angeles office and the lead attorney on the deal.
        Separating the businesses allows them to pursue their separate growth strategies, Atzen adds. Irvine-based Quantum produces technology for the fuel-cell business, while IMPCO makes more traditional alternative-fuel technologies.
        Fuel cells are being developed to provide energy in an efficient, environmentally friendly manner. Atzen says the newly created company has "exciting prospects" in an emerging field.
        "And in addition, they've got a great strategic stockholder and strategic partner in GM," he says.
        He notes that automobile manufacturer General Motors Corp. has purchased a 20 percent stake in Quantum.
        As a separate company, Quantum also will have an easier time accessing the public markets, Atzen notes.
        In the transaction, IMPCO distributed Quantum shares by way of a special dividend to IMPCO stockholders. The parent company is trading on the Nasdaq under the symbol IMCO; Quantum also is trading on the Nasdaq, under the symbol QTWW.
        The Morrison & Foerster team has worked on the deal for the past year. The law firm has represented IMPCO for three years.

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Toni Vranjes

Daily Journal Staff Writer

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