CAOL ACQUIRES CHINESE ISP!!! READ THIS:
CATHAYONLINE.COM Acquires China ISP
NEW YORK--(BUSINESS WIRE)--June 30, 1999--CATHAYONLINE.COM INC. (OTC BB:CAOL) 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.COM is maintaining its focus on becoming an ISP leader in the Peoples' 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.COM will achieve an elite competitive positioning.
THE ACQUISITION
CATHAYONLINE.COM 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.
Prior 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.com'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 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.COM 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.COM 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.COM INC.
----------------------------- On Behalf of the Board of Directors Brian Ransom, Director
More information can be obtained about CathayOnline.com by visiting cathayonline.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.
CONTACT:
Worldvision Financial, Casselberry, Fla.
Keith Baldridge, 888/345-6060 or 407/834-8944
or by visiting: wvfg.com
KEYWORD: NEW YORK INTERNATIONAL ASIA PACIFIC
BW1175 JUN 30,1999
6:40 PACIFIC
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