IPS Wins $2.4 Million Contract From China's Largest Picture Tube
Maker : Company's Early Recognition Of China Market Yields $9.8
Million In Orders
MARKHAM, ONTARIO--(BUSINESS WIRE)--Feb. 15, 2000-- (TSE:IPV. - news) Image Processing Systems Inc. (''IPS'') announced today that it
has been awarded a major contract valued at $2.4 million from IRICO Group Corporation, China's largest picture tube manufacturer. The order reinforces
IPS's leadership position as an equipment supplier to the worldwide display industry and increases the Company's penetration of the fast-growing Chinese
market. Under the terms of the agreement, IPS will supply fourteen of its flagship ADI 8200 ITC systems as well as ten ADI 5200 QA systems. These
systems, scheduled for delivery in May 2000, will be used in the production of 25''and 29''colour picture tubes.
IRICO Group Corporation, headquartered in Beijing, is a major force in China's electronics industry, with gross assets of 6.7 billion Chinese Yuan
(US$809 million) and over 20,000 employees. The state-owned Company manufactures a wide range of electronic products including colour picture tubes
(CPTs), colour display tubes (CDTs), color televisions, PCs and monitors.
''IPS recognized the market potential of China early on with a sales and service commitment.'' comments Ken Wawrew, IPS President & CEO. ''This
investment is now paying off for us. In the first three quarters of this fiscal year alone, IPS received more than $9.8 million in orders from factories in
mainland China.'' Adds Mr. Wawrew, ''China's impending entry into the World Trade Organization (WTO) as a developing country will remove trade
barriers between countries, thereby increasing the export opportunities for Chinese enterprises. In addition, strong domestic demand for TVs and PCs will
continue to fuel production of CPTs, CDTs, television sets and computer monitors within mainland China. As China continues its rapid development, its
market represents a major growth opportunity for IPS.''
According to China's Ministry of Information Industry, the electronics industry's gross output value grew by approximately 21% to $70.2 billion in 1999. By
2010, according to the Ministry, mainland China will become the world's largest electronics and information products market in the world.
''Direct investment in China for TV and PC production from other Asian countries is increasing rapidly,'' comments Dave Thomas, IPS Vice President,
Sales and Marketing. ''According to an article published recently in the China Daily, the number of colour TV producers in China increased from less than
50 to more than 100 from 1996 to 1998, increasing overall annual production capacity to more than 40 million units. The domestic market is estimated at 20
million units, and is expected to increase substantially as rural families begin to replace old black and white TVs with colour ones. In 1998, there were
approximately 27.3 television sets per 100 households in rural areas. This figure is now very close to 30%, the point at which growth is expected to
accelerate rapidly.''
IPS is a global e-Vision (electronic vision) systems provider. The Company's automated display inspection and alignment (ADI) systems are used by most
of the world's largest display manufacturers. IPS also provides advanced glass inspection solutions for the display and automotive industries, developed in
close co-operation with key customers. IPS, an ISO 9001 and IQNET certified company, is listed on the Toronto Stock Exchange under the symbol IPV
and has offices and representatives in Brazil, Canada, China, Japan, Korea, The Netherlands, Poland, Taiwan, the United Kingdom and the United States.
Copies of our press releases are available on the IPS website at www.ipsautomation.com.
Contact:
Chris Cory or Flora Wood, CEF
Toronto, Ontario Toll-Free: 888 214 1570
+1 416 777 0001 |
