Thursday July 15, 9:19 am Eastern Time
Company Press Release
CathayOnline Inc. Acquisition of Lottery Kiosks in China
NEW YORK--(BUSINESS WIRE)--July 15, 1999--CathayOnline Inc. (OTC BB:CAOL - news) has now completed the acquisition of 3 Online Lottery Kiosks in Guangzhou, China. CathayOnline intends on acquiring an additional 5 Lottery Kiosks for the month of July.
CathayOnline Inc. has projected to acquire approximately 50 operational Lottery Kiosks in the next six months, which, when fully operational, are expected to generate in excess of US $450,000 net annualized income (Earning Before Interest Taxes & Depreciation - EBITDA).
The second phase of the Company's plan calls for the acquisitions of 150 additional operating Lottery Kiosks in the second half of the Company's fiscal year. When this phase is completed, the total annualized net income (EBITDA) is projected between US $1.75 million and US $2.25 million.
The lottery industry in China is in its infancy--with only some 6% of the Chinese estimated to have tried their hand at lotteries, compared to 85% of the Americans. Revenue generated from sale of lottery tickets is a growing industry. China, with its huge population (1.3 billion) speaks for itself in terms of potential revenue that would be generated once more significant market penetration has been achieved. In the last nine months alone US $1.3 billion in welfare lottery cards were sold in China. This project confirms the focus of the Company to engage in business that provides significant cash flow opportunities and established management.
CathayOnline would like to welcome investors to visit the Company's site at www.cathayonline.com to view our recently posted Q&A.
Statements included in this press release which are not historical in nature, are intended to be, and are hereby identified as \223forward-looking statements\224 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 \223anticipate,\224 \223believe,\224 \223intends,\224 \223estimates,\224 \223expect,\224 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.
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