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BW2646 JUL 26,2000 10:45 PACIFIC 13:45 EASTERN
( BW)(NY-SETO)(SETO) SETO Announces New Credit Lines and Leasing Facility Totaling $1.3 Million USD From Two Malaysian Financial Institutions
Business/Technology Editors
BRIARCLIFF MANOR, NY--(BUSINESS WIRE)--July 26, 2000--SETO Holdings, Inc. (OTCBB-SETO) today announced that it has received new working capital financing for $800,000 USD and an equipment lease facility of $500,000 USD.
This new financing in Malaysia is in addition to the recently announced increased credit line from Merrill Lynch for SETO Holdings Inc. New York. The credit line in Malaysia is for raw material and components needed for the new products that will be manufactured with the recently purchased "SMT" (surface mount technology) and assembly lines consisting of "AI" (automatic insertion) and wave soldering that are primarily used to manufacture PCB (printed circuit boards).
The equipment lease facility is for the new SMT (surface mount technology) and assembly lines recently purchased for Fimas Electronics Sdn Bhd manufacturing facility in Kulim, Malaysia that is scheduled to be in production during August, 2000. The increased capacity from these new production lines is already being negotiated with three large companies in Malaysia currently manufacturing computers, entertainment devices and electronic equipment.
Mr. Garry Tan has done an excellent job in securing this new capital and is in the final stages of securing an additional $800,000 USD as working capital expected to be completed in August, 2000. This will bring the total new financing for SETO in the last few months to $3 Million. This includes equity capital raised, the Merrill Lynch credit line including the recent increase, the equipment lease facility and the working capital loans mentioned above. The $3 Million does not include the additional $800,000 USD expected in August, said Tan Hun Chin, Director of SETO Holdings Inc.
Mr. Gene Pian, President, CEO of SETO said "the increase in revenue expected to be $400,000 per month will only be reflected in the latter part of the third quarter and fourth quarter. The second quarter results ending July 31, 2000 is projected to show a 20% increase in revenue over the first quarter ending April 30, 2000. Earnings projections are not available at this time. Second quarter results will be announced in September, 2000.
About SETO Holdings, Inc.
Founded in 1975, SETO Holding, Inc. operates as a broad based technical manufacturer in two major product groupings: Technical Products to industry, inclusive of diamond tools, wafer fab supplies and technical ceramics; and Consumer Products such as cellular phone batteries, rechargeable batteries for industrial uses, consumer electronics and telecommunication devices. Please visit the Company's web sites: www.SETOHOLDINGS.com, www.stidiamond.com, www.ecsceramics.com, www.setoEmall.com, www.hk-batteries.com.hk.
Included in this release are "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Although the company believes that the expectations reflected in such forward-looking statements are reasonable, it can give no assurance that such expectations reflected in such forward-looking statements will prove to have been correct. The company's actual results could differ materially from those anticipated in the forward-looking statements as a result of certain factors including sales levels, distribution and competition trends and other market factors.
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CONTACT: SETO Holdings, Inc.
Thomas Fisher
Public Relations Manager
Tel: 914/923-5000
Fax: 914/923-6225
e-mail: stiandecs@aol.com
setofisher@aol.com
KEYWORD: NEW YORK
INDUSTRY KEYWORD: COMPUTERS/ELECTRONICS E-COMMERCE INTERNET
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