Coretest Systems Inc. Succeeds In Russia Market With Ex-Im Bank Backing
FOR IMMEDIATE RELEASE December 19, 2002
Marianna Ohe (202) 565-3200
Coretest Systems Inc., San Jose, CA, a 17-employee maker of geophysical analysis and laboratory test equipment for the petroleum industry, is highlighted for its export success in the newly released Export-Import Bank of the United States (Ex-Im Bank) Annual Report for fiscal year 2002.
Ex-Im Bank is an independent U.S. government agency that helps finance the sale of U.S. exports, primarily to growth markets throughout the world, by providing loans, guarantees, and insurance. In fiscal year 2002, Ex-Im Bank supported approximately $13 billion of U.S. exports worldwide.
Coretest was one of four U.S. companies chosen by Ex-Im Bank, out of more than 2,000 firms supported by the Bank in fiscal year 2002, to be featured in the Annual Report as a small business export success case. Coretest has been using Ex-Im Bank short-term export credit insurance and working capital guarantees in Russia over the past two years to win contracts in the face of strong competition from European companies that are supported by their governments. The working capital guarantee helps Coretest obtain funding to fill multimillion-dollar foreign orders. The insurance enables Coretest to protect against buyer default while offering competitive financing terms to its Russian customers.
When we go into a market such as Russia, Ex-Im Bank has the political and financial muscle to make it possible for a small company such as ours to compete on a level playing field, said Coretest Vice President David Lynch. With large projects such as this where credit is imperative, there is no other mechanism like Ex-Im Bank to enable us to win contracts.
Coretest manufactures sophisticated core analysis technology that only a few other companies in the world produce. In fiscal year 2002, Coretest used a $2.5 million Ex-Im Bank insurance policy to cover letters of credit issued by International Moscow Bank for sales of its equipment to one of Russia's largest oil producers.