IPKL -- iPackets Signs an LOI to Establish a Chinese Joint Venture With China Coal Information Institute and Henan YongAn Investment
VANCOUVER, BC, Oct 02, 2006 (MARKET WIRE via COMTEX) -- iPackets International, Inc. ("iPackets") (PINKSHEETS: IPKL), a global developer and provider of wireless and communications solutions for the mine-safety industry, announced today that it has signed a Letter of Intent ("LOI") to establish a Chinese Joint Venture ("JV") with China Coal Information Institute ("CCII") and Henan YongAn Investment Guarantee Co. ("YongAn"). The JV will be responsible for the manufacturing, distribution, sales, marketing, installation, deployment, and support of iPackets' iPMine solution to the mining industry in China. The operation will be based in the province of Henan, China's second largest coal producing province.
According to the terms of the LOI, YongAn will provide funding of up to $50 million to the JV, and over two acres (10,000 square meters) of land to build and outfit a world-class manufacturing facility in Jiaozuo city, Henan. CCII will provide the JV with professional services including product certification, sales and marketing, technical support, and market intelligence. iPackets will provide the JV with its technology intellectual property as an asset to be utilized for the China market only, continued product development, technology direction, and technical knowledge transfer. The JV agreement is expected to be finalized in two months.
iPackets had several competing offers to establish a JV in China and short-listed three proposals. After months of negotiations, iPackets selected YongAn and CCII who presented the best offer in terms of investment, product certification, and future commitments. CCII played a key role in facilitating the negotiations and discussions. In the April 10, 2006 press release, iPackets announced that it was in discussions with CCII to conclude an agreement.
"This LOI represents the first step towards our strategy of focusing on the mine-safety industry in China," said Naiel P. Kanno, iPackets' President and CEO. "From the outset, our goal has always been to be a premium provider of a true 2-way wireless mine-safety monitoring and tracking system worldwide. The Chinese JV will enable us to meet the local market demand and export products to other markets globally."
"Involving local expertise and funding will expedite the certification process and free-up our resources to focus on the next generation of our technologies as well as other product groups," said Kouros Goodarzi, Vice President of Engineering of iPackets. "We are confident we can help the JV establish a world-class manufacturing and support facility to fast track the introduction of iPMine into the Chinese mining industry."
About the Mining and Mine Safety Industries in China
China comprises more than 280,000 mining enterprises, of which 80,000 are state-owned. There are over 25,000 state-owned coal mines in China, of which over 700 are classified as large mines. Mine safety has been a major issue in the Chinese mining industry, with more than 6,000 miners killed in mining-related accidents in China last year; independent estimates say the real figure could be as high as 20,000. According to Chinese government statistics, more than 12.2 million people were employed as miners in 2005, and approximately 7.0 million of these were coal miners.
About China Coal Information Institute
Established in 1959 by the Chinese government, China Coal Information Institute is a national research organization with over 800 employees. CCII is part of the newly-established National Institute for Occupational Safety and has played a leading role in the development of China's domestic coal industry and occupational safety. As the strongest segment of the CCII, the Energy and Safety Division provides information support and strategic suggestions to government authorities, undertakes market investigations, and provides consulting services to Chinese and international companies to expand their business in the areas of energy, safety, environment, and information technology. For more information, please visit www.coalinfo.net.cn/english.htm.
About Henan YongAn Investment Guarantee Co., Ltd.
YongAn is one of the first investment guarantee companies to be approved by the Chinese National Development and Reform Commission. With over 55 employees, YongAn business scope is finance, investment guarantee, debenture guarantee, financial services and consultation related to investments in small- to medium-sized enterprises.
About iPackets International, Inc. and iPMine
iPackets International is a developer and provider of wireless communications solutions for the global mine-safety industry. iPMine, designed to significantly improve the safety of miners and equipment, is a real-time two-way wireless communications solution that tracks, monitors, and communicates with miners and equipment underground and above ground. Location information of both miners and equipment is collected and displayed live on one or more monitoring stations against a background of a mine's terrain map. iPMine's scalability and flexibility features make it ideal to be deployed in any size mine supporting multiple levels and/or sites. iPMine's redundant communications feature makes the system highly reliable to efficiently operate in the harsh mining environment. For more information, please visit www.ipackets.com.
Contact:
Allegiant Financial Group
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SOURCE: iPackets International, Inc.
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