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Jobbers World News
December 18, 2008

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  • ExxonMobil's Response to Valvoline's Claim
  • ROYAL MFG COMPANY LEADS WAY WITH NEW ROUND OF PRICE DECREASES
  • CONOCOPHILLIPS COMPANY INTRODUCES 76 SUPER SYNTHETIC MOTOR OIL
  • High Velocity Alternative Energy, Inc. Completes Acquisition of American Chemical Exchange, Inc.
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    ExxonMobil's Response to Valvoline's Claim

    As reported in JobbersWorld on December 11, and further detailed in the December 13 issue of JobbersWorld, the Valvoline Division of Ashland went public on November 20, 2008 in a letter to Valvoline Customers saying that "Mobil 1 5W-30 does not meet minimum API SM or ILSAC GF-4 specification because of its inferior performance in the Sequence IVA wear test." In addition, the letter closed with "Please refer to the attached Q&A for additional data."

    For those that took the time to read the Q&A sheet that accompanied Valvoline's letter (see link below), Valvoline turned up the heat even more by saying " Mobil 1 5W-30 DOES NOT MEET the most basic API SM or ILSAC GF-4 specifications. That means Mobil 1 5W-30 cannot meet basic GM, Ford, Chrysler or Honda specifications."

    Ouch! That's certainly a serious claim, and one that Thomas R. Smith, Technical Director of Valvoline Lubricants told JobbersWorld he stands behind. According to Smith, Ashland made ExxonMobil aware of this issue in September and as of December 11th, "ExxonMobil has been silent."

    But whereas ExxonMobil apparently has not responded directly to Ashland, they did respond to JobbersWorld's request for a comment. So here it is, ExxonMobil's response to the press:

    "We would like you to know that while we are aware of Valvoline's assertions, ExxonMobil stands behind the quality of Mobil 1 and all of our lubes products. ExxonMobil's GF 4 licenses for all product lines are valid."


    ROYAL MFG COMPANY LEADS WAY WITH NEW ROUND OF PRICE DECREASES

    Royal Mfg Co and affiliates Troco Oil Company, Tulsa, OK and Wright Oil Company, San Antonio, TX has stepped out with price reduction adjustments for branded and unbranded lubricants. The adjustments will be from $1.00 to $1.60 per gallon and from 6 to 14 cents per pound on grease. This will include all finished lubricants except synthetic products, white oils, food grade and bio-based lubricants. The new prices will go into effect on all orders in house and on new orders received on or after December 22, 2008. All special discounts will be rescinded with this offer.

    Royal says, "Our customers and a number of prospects are asking for reduced prices prompting us to make a sizeable reduction in our selling price to give our distributors a decided advantage over cost from other lube oil suppliers including major oil companies. Additionally, we would like to reduce our inventories in preparation for lowered raw material costs."


    CONOCOPHILLIPS COMPANY INTRODUCES 76 SUPER SYNTHETIC MOTOR OIL

    ConocoPhillips Company announced the introduction of 76 Super Synthetic Motor Oil to its existing line of high quality lubricant products. According to ConocoPhillips, the new 76 Super Synthetic is a premium full-synthetic passenger car engine oil that is specially formulated to meet the rigorous performance requirements of the GM4718M ("Corvette") specification. It is also recommended for use in most late model Cadillacs as well as all turbo-charged General Motors engines, according to Clarence McCollum, Director of Automotive Products, ConocoPhillips Company.

    "We formulated 76 Super Synthetic Motor Oil with high quality synthetic ingredients to provide enhanced performance benefits when compared to conventional engine oils," explained McCollum. "The benefits include improved oxidation resistance, enhanced thermal stability at high temperatures as well as better low-temperature pumbability. By upgrading to this new motor oil, passenger car owners can be assured that their engine will continue to run at peak performance while also achieving improved fuel economy."

    The new 76 Super Synthetic Motor Oil is available in two viscosity grades, SAE 5W-30 and SAE 10W-30, which both meet or exceed API SM/CF and ILSAC GF-4 performance requirements for new cars under warranty. Additionally, the SAE 5W-30 viscosity grade meets the performance requirements of the Honda HTO-06 standard for use in the Acura RDX.


    High Velocity Alternative Energy, Inc. Completes Acquisition of American Chemical Exchange, Inc.

    High Velocity Alternative Energy, Inc. (PINKSHEETS: HVAE) announced that the Company has executed a Stock Purchase Agreement and completed the purchase of American Chemical Exchange, Inc. ("ACE") of Pasadena, CA. High Velocity entered into a Letter of Intent with ACE in July 2008. ACE was owned by Robert Somerman; as part of the Letter of Intent to purchase ACE, Mr. Somerman was appointed President and CEO of High Velocity. ACE becomes a wholly owned subsidiary of High Velocity. The terms of the purchase of 100% of the shares common stock of ACE for a purchase price of 14,000,000 shares of restricted common stock of HVAE and the payment of $150,000.00, in six payments. Robert Somerman was also given an employment Agreement for a period of five years, at an initial salary of $180,000 per annum.

    Mr. Somerman stated, "The joining of the two companies, both sharing similar business models and philosophies, will immediately increase an economy of scale and accelerate the expansion of opportunities into new markets and products for High Velocity." American Chemical Exchange, Inc. is a middle market petroleum-based lubricant company with an emphasis on the recycling of glycols for use in industrial and automotive coolants. Additionally, the company specializes in the refining, blending, packaging, and distributing of lubricants, coolants, and other chemicals sold primarily to the automotive aftermarket through established distribution channels.

    About High Velocity Alternative Energy, Inc. Headquartered in Bedford Park, IL, High Velocity Alternative Energy, Inc. is a holding company that specializes in the refining, blending, packaging, and distribution of middle market petroleum and related products to the automotive and manufacturing aftermarket. These products are sold, both direct and through regional distributors, to retail outlets that include oil change shops, automotive aftermarket chains, gas stations, department stores, and convenience stores. The Company utilizes an innovative technology to capitalize on renewable energy and lubricant resources by recycling spent oils and glycols. High Velocity Alternative Energy's 40,000 square foot plant is conveniently located outside Chicago with access to interstate and railroad.

    Forward-Looking Statements This press release contains forward-looking statements, which represent the Company's expectations or beliefs, including, but not limited to, statements concerning plans, growth and strategies, which include, without limitation, statements preceded or followed by or that include the words may, will, expect, anticipate, intend, could, estimate, or continue or the negative or other variations thereof or comparable terminology. Any statements contained in this press release that are not statements of historical fact may be deemed to be forward-looking statements. These statements by their nature involve substantial risks and uncertainties, some of which are beyond the Company's control, and actual results.


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