Major news at the close yesterday!
Perfisans Signs LOI to Merge With Major Wireless Broadband Solutions and VoIP Service Provider in China
Wednesday April 26, 4:30 pm ET
Perfisans Signs Letter of Intent to Merge With FSP Holdings Limited
LOS ANGELES, CA--(MARKET WIRE)--Apr 26, 2006 -- Perfisans Networks Corp. (OTC BB:PFNH.OB - News), a next-generation semiconductor designer focused on the burgeoning Gigabit Ethernet market, announces today that it has signed a Letter of Intent to merge with Wireless Broadband Access (WBA) service provider; FSP Holdings Limited (FSP), a British Virgin Island company, which fully owns Zhejiang Fibersense Communication Technology Company Limited (http://www.fsp.com.cn). Executives of both companies have found significant mutual benefits to explore the potential merger of the two companies.
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FSP is a Wireless Broadband Access (WBA) solution provider. It provides long range wireless broadband access (WiMax-802.16) and short range wireless broadband access (WiFi-802.11) for applications including VoIP (Voice over Internet Protocol), video and other internet access applications.
FSP's cost-effective integrated WBA and VoIP systems solutions conform to China and international standards. Its primary target consumers are both public and private networks with substantial existing infrastructures such as telecommunication providers, government offices, cyber cafés, public utilities, oil and mining industries, and provincial forest services.
There are only five licensed telecommunication carriers within China (PRC). FSP has engaged in the telecommunication business in China by partnering with major licensed carriers and government institutions. There is a high entry barrier due to the large amount of investment capital and required capability to meet carriers' qualification and provincial authority cooperation. FSP has met and exceeded these formidable barriers, which allows the company to "tap in" to the existing lucrative, traditional, and monopolized telecommunication businesses in China. FSP is an authorized WBA voice-and-data fixed-and-wireless telecommunication solution provider and operator in Mainland China with sales and engineering offices in Hangzhou, Beijing, and Chengdu.
FSP has signed a long-term cooperation agreement with a major China carrier to provide voice-and-data broadband services and to deploy WBA (Wireless Broadband Access) coverage within city.
"We are very excited about entering into this merger agreement because the demand for broadband access is growing rapidly in China," said To-Hon Lam, President and CEO of Perfisans. "As one of the major wireless broadband and VoIP solutions provider in China, the PFNH-FSP merger contains significant benefits for both companies. By combining FSP's market position in China and PFNH's semiconductor design expertise and high-speed networking know-how, FSP is technologically equipped to potentially offer a complete VoIP and WBA solution for 802.16 (WiMAX) and 802.11 (WiFi) based system and products with PFNH components."
"High performance and high efficiency components are critical for large-scale and application-specific WBA and VoIP deployment," said Joseph Lin, Chairman and CEO of FSP Holdings. "FSP has been looking for appropriate device and components for its solutions, specifically in voice and surveillance applications. PFNH will play an important role and fill in the gap of applicable semiconductor components in this fast-growing WBA and VoIP market and to satisfy our customer needs in telecommunication and government sectors."
FSP after the merger will operate as a separate entity, under Perfisans Holdings, Inc. and will continue its objective to provide leading-edge, cost-effective technology, product and service solutions. The world market opportunity for WBA is projected to be worth more than $3 billion by 2010 and the VoIP applications alone from the research report of IDC in July 2005 titled "Research and Projection of VoIP Market in China 2005 to 2009," shows that Chinese carrier-class IP voice market has become the largest voice market in the Asia Pacific region. IDC estimates that the carrier-class IP voice market in China will reach $1.26 billion in 2009 and the compound growth rate will be 22.85% annually. FSP is already ramping up to capture this market. FSP has commenced in deploying the applications under its WBA in VoIP and Video Surveillance initiatives in China.
PFNH will merge with FSP's existing infrastructure, market platform and customer channels in China, and accelerate the establishment of its own sales and support in the fast-growing Asia Pacific region. PFNH will also benefit with access to first-hand customer requirements for future product developments tailored to the exploding wireless broadband and VoIP market. FSP has evaluated PFNHs' ENA5031 network accelerator in the past and found significant cost and performance advantages in using PFNH' product as compared to similar boards at higher costs. By taking advantages of FSP's existing contracts and customer infrastructure, Perfisans will be able to roll out its products in China more efficiently and quicker than originally planned.
After the merger, PFNH will also remain as an independent business unit of Perfisans Holdings, Inc. and continue to develop and market next generation IC products for networking, VoIP, WBA and wireless broadband applications for voice, video, and data, as well as specialized surveillance applications.
ABOUT FSP Holdings Limited
Zhejiang Fibersense Communication Technology Company Limited is a fully owned foreign company headquartered in Hangzhou City, Zhejiang, China, with a registered capital of USD $8M. The holding company is FSP Holdings Limited (FSP) registered in British Virgin Island. FSP is a WBA (Wireless Broadband Access based on 802.16 and 802.11 standard) and VoIP (Voice over Internet Protocol) solution provider and service provider with branches in Mainland China (PRC). FSP has set up sales and engineering offices in Hangzhou, Beijing, and Chengdu. FSP is committed to providing cost-effective integrated WBA and VoIP systems solutions conforming to Chinese and international standards. FSP's primary target consumers are both public and private networks with substantial existing infrastructures such as telecommunication providers, government offices, enterprise networks, public utilities, oil and mining industries, and provincial forest services. |
