Asian Star Subsidiary Signs Joint Venture Agreement to become the First CD-RW Manufacturing Company in China
HONG KONG, May 25, 2000 (BUSINESS WIRE) -- Asian Star Development, Inc.
(OTCBB:ASTV), by and through its subsidiary, Harmonic Hall Investments Holdings
Limited ("Harmonic"), announced the signing of a joint venture agreement with
Henan ANCAI Group -- Melody Electronic Co., Ltd. ("ANCAI"), to manufacture CD-RW
products in China. "Harmonic" holds majority interest in the venture. The
closing of the joint venture transaction is subject to completion of definitive
agreements to be prepared by legal counsel.
"ANCAI" is a Fortune 500 Firm in China and is listed on the Shanghai Stock
Exchange, trading No. 600207. ANCAI's gross assets (1999) were approximately
US$300 million and revenue (1999) were approximately US$108 million. ANCAI's
current market capital is approximately US$730 million. ANCAI is also a leading
corporation in Henan Province, the most populated province in China. Harmonic
was granted the first permit ever issued by the Chinese Central Government to
manufacture CD-RW products in China, and plans to expand production to other
products, e.g., CD-R, DVD, etc.
Stephen Chow, president of Asian Star, stated, "We are delighted to be
associated with one of the top corporations in China in this exciting new high
tech venture. Since ANCAI is also in the high-tech manufacturing field, we
believe our R & D Division will become much stronger. We also expect our
manufacturing facility will place us in an excellent position to capitalize on
the rapidly expanding CD, CD-RW and DVD markets in China, a country with 1.3
Billion potential consumers."
Harmonic was formed in 1976 as a cassette duplication factory and gradually
developed into a manufacturer providing a full spectrum of one-stop service to
the entertainment and software industries, and started the manufacturing of
rewritable media in 1998. Products include CD-RW, DVD, CD, CD-Rom, VCD, LD,
Stampers, Wter Mrk CD, Cassette and VHS. The client base has extended to a group
of over 300 active customers, including Philips (NYSE:PHG), BASF (Nasdaq:BASFY),
ACER, IBM (NYSE:IBM), Microsoft (Nasdaq:MSFT), Mattel Toys (NYSE:MAT), Polygram
(NYSE:PLG), Warner Music (NYSE:TWX), BMG and EMI.
To receive further corporate information, contact:
Investor Relations: 415/566-2503 / 800/488-7151 or visit
www.asianstardev.com
Hong Kong Office: Stephen Chow, President, Asian Star Development,
Inc. 011-852-2721-0936 or e-mail
info@asianstardev.com
The above statements in regard to Asian Star Development, Inc. and Harmonic Hall
Investment Holdings Limited which are not purely historical are forward-looking
statements within the meaning of the Private Securities Litigation Reform Act of
1995, including Asian Star Development, Inc.'s beliefs, expectations, hopes or
intentions regarding the future. All forward-looking statements are made as of
the date hereof and are based on information available to the parties as of such
date. It is important to note that actual outcome and the actual results could
differ materially from those in such forward-looking statements. Factors that
could cause actual results to differ materially include risks and uncertainties
such as technological, legislative, corporate and marketplace changes.
CONTACT: Asian Star Development, Inc.
Stephen Chow, 011-852-2721-0936
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