WAKE UP CALL....
June 30, 1999
New York, New York
CATHAYONLINE INC.
(OTC BULLETIN BOARD - SYMBOL "CAOL")
CATHAYONLINE INC. ACQUIRES CHINA ISP
CATHAYONLINE INC. is pleased to announce the acquisition of Sichuan Torch
Information Technologies Co. Ltd., an Internet Service Provider (ISP) in the province
of Sichuan, China. The move positions The Company as a joint venture partner with,
and operator of, one of only four government licensed ISP's in a province of 100
million residents.
With 1.4 billion Chinese-speaking individuals worldwide, CATHAYONLINE is
maintaining its focus on becoming an ISP leader in the People's Republic of China.
Strategic domestic and international partnerships will enable The Company to
provide a full spectrum of services through its China operation, Sichuan Torch. By
delivering cutting-edge services far superior to those currently available,
CATHAYONLINE will achieve an elite competitive positioning.
The Acquisition
CATHAYONLINE has acquired 100% of Sichuan Torch Information Technologies
Co. Ltd., of Chengdu, capital city of the Sichuan province. The Company's joint
venture partner is Chengdu Torch Industrial & Commercial General Company,
holder of one of only four government licensed ISP's in the province. Sichuan Torch
will exist as the sole operator of this license.
Chengdu Torch will receive 20% of the net profits earned by this ISP joint venture.
Mr. Owen Li, President of the ISP project, as well as his management team, can
earn-out up to a total of 705,000 shares of CATHAYONLINE INC., based on
specific performance criteria.
Sichuan Torch Information Technologies Co. Ltd.
Well established and operational, Sichuan Torch currently employs 28 highly
accomplished industry professionals. As the first order of business following the
acquisition, The Company will expand existing operations within Chengdu city.
Expansion into the province's 12 additional major municipalities will soon follow.
Services currently provided by ISP's in Chengdu city are limited at best. Sichuan
Torch is currently enacting a marketing strategy that will allow The Company to
offer a multitude of value-added services never before seen in the province. These
will include turnkey systems for corporate users, Internet fax/phone, system
integrations, use of an "Electronic Mall", trial accounts, dedicated lines, virtual Web
and domain names, on-site training and seminars, Internet consultation and 24-hour
support. Uniform pricing policies will also be established to further entice existing
"fee-exhausted" customers.
The Management Team at Sichuan Torch includes Mr. Owen Li, President, ISP
Operations; Mr. Allan Lai, Chief Engineer; Mr. Glen Gu, Network Manager; and Mr.
Tony Xu, Sales Manager. Mr. Owen Li holds a Master of Science in Computer
Science from the University of British Columbia, Canada. His 12 years of technical
experience in computer communications are complimented by 7 years of
management experience in the telecommunications industry, and a diverse
background in computer consulting.
Market Potential:
CATHAYONLINE's Internet Service Provider/e-business (ISP-EBS) project
presently existing in the city Chengdu (Population: 9.8 million) will expand into
remaining areas of the province of Sichuan (Population: 100 million). As the centre
of business and technology development in Western China, Chengdu exists as the
logical starting point in a virtually untapped market - only 4% of the Internet usage
in China. As one of the most important centres of politics, economics, technology,
and culture in China, it also holds a strategic position in China's economic
development plan.
CATHAYONLINE INC.
The acquisition of Sichuan Torch Information Technologies Co. Ltd., serves to
reconfirm the Company's commitment to sourcing and acquiring strategic
properties with both significant cash flow opportunities and established
management. CATHAYONLINE INC.will continue to establish strong brand name
recognition through ongoing high profile joint ventures, extensive use of outdoor
advertising, link exchanges, and banners.
For more information, please visit our updated websites at:
torchnet.com or chengdunet.com
CATHAYONLINE INC.
_____________________________
On Behalf of the Board of Directors
Brian Ransom, Director
More information can be obtained about CATHAYONLINE by visiting
cathayonline.com.
For further
information,
please contact:
WORLDVISION FINANCIAL (Susan Kough)
Tel: 1-888-345-6060 or 1-407-834-8944 or by visiting
wvfg.com
Statements included in this press release which are not historical in nature, are intended
to be, and are hereby identified as "forward-looking statements" for purposes of the safe
harbor provided by Section 21E of the Securities Exchange Act of 1934, as amended by
Public Law 104-67. Forward-looking statements may be identified by words including
"anticipate," "believe," "intends," "estimates," "expect," and similar expressions. The
Company cautions readers that forward-looking statements, including without limitation,
those relating to the Company's future business prospects are subject to certain risks and
uncertainties that could cause actual results to differ materially from those indicated in the
forward-looking statements.
Suite 1000 – 6 East 45th Street, New York, New York USA 10017
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