SETO Holdings Acquires CTI Communications Kuala Lumpur, Malaysia
BRIARCLIFF MANOR, N.Y.--(BUSINESS WIRE)--March 13, 2000--SETO Holdings,
Inc. (OTC BB: SETO - news) announced today the 100% acquisition of CTI
Communications Sdn Bhd based in Kuala Lumpur Malaysia.
CTI Communications is one of the fastest growing retail chain stores and franchiser
throughout Malaysia. CTI has been in business four years selling through company
owned retail outlets. The products include cellular phones, batteries and accessories
with brand names, such as, NOKIA, MOTOROLA, ERICSSON, NEC, PHILIPS,
SEIMENS, ALCATEL, SONY, and SAGEM. CTI also manufactures a complete line
of leather and vinyl phone cases and designs all CTI's packaging.
In addition, Terry Teow Wooi Huat, Managing Director and founding owner of CTI
recently expanded the retail operations with the formation of the franchising division,
``CTI Mobile World Sdn Bhd.' CTI Mobil World in operation since Feb. 14, 2000
already has 14 franchises in full operation, with 20 more signed up that will be
operational by the end of April 2000. The target for this year ending Jan. 31, 2001 is
100 franchises. Additional expansion into other SE Asian countries, N and S
America, and Europe is being planned for next year, as SETO Mobil World
Franchise, said Gene Pian, SETO's President.
The company reported sales for 1999 of $4.5 million with a net profit of $600,000
(without any Franchises). Forecast for the year ending Jan. 31, 2001 is $13.2 million
in sales with a net profit of $1 million. Net worth is $660,000. The purchase price was
658,000 restricted SETO shares for 100% of CTI Communications Sdn Bhd
(Corporate and Retail), CTI Mobile World Sdn Bhd (Franchises) and GL Collection
(M) Sdn Bhd (leather and vinyl case manufacturing.) Additionally, CTI has guaranteed
it's current forecast of $1 million for year ending Jan. 31, 2001. As added incentive,
500,000 SETO restricted shares will be awarded if actual net profit exceeds $1.7M.
Mr. Pian also said, `` We have known and respected Terry Teow Wooi Huat's
business abilities for a number of years as a customer of FujiFab and close
associate of Tan Hun Chin, a director of SETO and previous owner of FujiFab. We
thereby realized that SETO has many growth potentials with CTI for worldwide
expansion in franchising for the cellular phone products and accessories, and by
adding SETO telecommunication products, that were recently announced on March
6, 2000 and in prototype testing. SETO now has a complete cellular product line for
retail, franchising, distribution and Internet e-commerce selling with
telecommunication products not far behind.' SEE www.cticomm.com.my
SETO HOLDINGS, Inc., formerly Semicon Tools Inc. has been a public Company
since 1987 and operates as a broad based technical manufacturer in two major
product groupings: Technical products to industry: diamond tools, wafer fab supplies
and technical ceramics. Consumer products: cellular phone and power tool batteries,
accessories and electronics. ``Safe Harbor' statement under the Private securities
Litigation Reform Act of 1995 Statements contained in this release which are not
historical facts are forward looking statements that involve risks and uncertainties
that could cause actual results to differ from projected results. Factors that could
cause actual results to differ materially include, among others, economic and political
events in or effecting Malaysia, the Company's dependence on the semiconductor
industry and other risk factors detailed in the Company's Securities and Exchange
Commission filings.
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Contact:
R.F. Services, Inc.
Gene Pian, 914/923-5000
or
Investor Relations: 714 220 2900
Fax 714 220 2925
Company web site: www. SETOHOLDINGS.com
or www.stidiamond.com
or www.ecsceramics.com
or www.fujifab.com
Email:stiandecs@aol.com |
