<font color=red>More Good News For NTPA
June 26, 2001 09:47
Tengtu International and Chinese Partners Win Contract for World's Largest e-Education System
TORONTO, ONTARIO—
Tengtu Distance Learning Satellite Network Established in PRC Tengtu to Operate China's National Broadband Resource Centre
Tengtu International Corporation (OTC BB: TNTU) today announced that it has entered into an agreement with the People's Republic of China (PRC), Ministry of Education to become the operating and development partner of China's new e-education and national distance learning system.
Tengtu will share its profits 70% - 30% with the Ministry of Education.
The landmark agreement encompasses a totally integrated nationwidesystem reaching China's education market, largest in the world with more than 200 million K-12 students, via satellite, broadband, cable, broadcast and the internet. It follows the successful completion by Tengtu of Phase One of Operation Morning Sun, a fast-track Ministry of Education program to install IT application software jointly developed by Tengtu and Microsoft (MSFT) in some 20,000 K-12 schools in its first two phases. On July 1, Tengtu will launch Phase Two under the aegis of the Ministry with a contract value of approximately $27 million.
Tengtu Chairman & CEO Pak P. Cheung said that this latest award bythe PRC, for e-education, once again reflects the confidence that the central government of China has in Tengtu's unique ability, well demonstrated over five years, to work closely with authorities at all levels to assist in the reorganization of its education system. "We have always believed in aligning our own business plans with the strategic goals set by China for the development of its market," Cheung stated. "This is indeed a vote of confidence in Tengtu over some of the world's largest media companies and provides us with the opportunity to become one of the largest fully integrated e-education companies in the world."
Under the agreement, which Tengtu sealed with an inital payment of$1 million, Tengtu will operate and develop, with the Ministry, China's Broadband Education Resources Centre, a national data-basenetworking system of teaching and learning resources to support web-based and distance learning for the K-12 market. Tengtu will be funding another $10 million in stages for the initial phase of this project.
The innovative e-education portal which Tengtu designed and developed over the past two years with leading western technology suppliers has been officially adopted by the Ministry of Educationto serve as the operating, production and distribution system for the national China Broadband Education Resource Centre and local Broadband Education Resource Centres throughout the PRC.
Tengtu and its Chinese partners have established the Tengtu Distance Learning Satellite Network to provide the backbone delivery system for the K-12 market. Satellite uplinks and downlinks combined with CERNET (China Educational Research Information Network) enables the system to comprehensively supportthe distance learning objectives of the government. In fact, the Ministry of Education, through its National Centre for Audio/VideoEducation, has contributed its own satellite channels to the Tengtu Distance Learning Satellite Network.
Zhang Fan Qi, a director of Tengtu International Corporation and majority shareholder amongst its Chinese partners, stated that "this opportunity is one that we have all worked hard to bring to fruition and represents an undertaking that will enable China's education system to meet the requirements for learning in the 21stcentury. We are committed to creating an e-education model that will truly win the admiration of world educators."
Chairman Cheung predicted that the Tengtu e-education portal, which goes live in July, would start seeing revenues by September."Just as the Han, Min and Wu flow into and make the mighty Yangtze, so revenues from subscriptions and connections, user feesand e-commerce transactions will stream into the top line of the Tengtu p & l," he said. "Over time, Tengtu profits from e-education could well surpass our income from equipping classrooms with software."
The agreement between the Ministry of Education and Tengtu states that it not only reinforces the promotion and popularization of information technology in elementary and secondary education and the connection of K-12 schools to web-based learning but will alsohave a profound influence on the reform and development of education in China as a whole.
Note: all dollar amounts are in US dollars.
About Tengtu International Corp.
Tengtu International Corp. is a developer and distributor of multimedia educational and entertainment software and related services, operating through a joint venture and subsidiaries in Canada, Hong Kong and the People's Republic of China.
The company's primary operating unit, Tengtu United Electronics Development Co. Ltd. ("Tengtu United"), is a 57% owned joint venture with Beijing Tengtu Culture & Education Development Co. Ltd. ("Tengtu China"), the Chinese state enterprise mandated to develop a comprehensive information technology solution for the national K-12 school system and to serve as the country's gateway for electronic publishing. Tengtu China is owned by three of China's largest computer companies, Legend Computer Group, Great Wall Computer Group and Taiji Computer Corporation, and Chinese technology firm Beijing Oriental Lianfa Company Ltd. Its strategicpartners include the China unit of Microsoft Corporation (Nasdaq: MSFT); People's Education Press, the sole source of materials authorized for use in Chinese schools, and Netopia, Inc.
Tengtu International's other units include wholly owned e-businessportal e-bizTengtu.com, Inc.; wholly owned animation and television production studio TIC Beijing Digital Pictures Co., Ltd.; and 61.3% owned software marketer Edsoft Platforms (Hong Kong) Ltd.
Note: This press release for Tengtu International Corp. may contain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Act of 1934, regarding events, conditions and financialtrends that may affect the company's operating results and financial position. Prospective investors are cautioned that forward-looking statements are not guarantees of future performance. Actual events or results may differ from the company's expectations, which are subject to various risks and uncertainties, some of which are listed in the company's SEC filings.
This press release was prepared by The Cavior Organization, Inc., a public relations firm, based on information supplied by its client, Tengtu International Corp. The information contained herein is believed to be reliable, but has not been independently verified by The Cavior Organization, Inc. None of the information contained in this press release should be construed as an offer tobuy or sell securities, either directly or indirectly. The Cavior Organization, Inc. or its officers or employees may from time to time acquire, hold or sell a position in the securities of Tengtu International Corp.
Neither Tengtu International Corp. nor The Cavior Organization, Inc. undertakes any obligation to publicly release revisions to these forward-looking statements, which may reflect events or circumstances after the date hereof or reflect the occurrence of unanticipated events.
FOR FURTHER INFORMATION PLEASE CONTACT:
Tengtu International Corp., Toronto
Pak P. Cheung (604) 438-9729
John D. Watt (613) 223-6042
or
The Cavior Organization, Inc., New York
Warren J. Cavior
(212) 687-6070
caviorg@aol.com |
