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CinTel's Chinese Subsidiary, Phoenix Semiconductor and Telecommunication (Suzhou) Co., Ltd (PSTS), Signs Contract with Samsung Electronic LCD (Suzhou) Co. to Provide LCD TV Source
CinTel Corp. (CinTel) (OTCBB: CNCN), Korea's top Internet traffic management (ITM) solution provider, is pleased to announce that its subsidiary Phoenix Semiconductor and Telecommunication (Suzhou) Co., Ltd ("PSTS") entered into a contract with Samsung Electronics LCD (Suzhou) (SELS) in November 2006 to provide LCD TV sources. Prior to this contract, PSTS supplied the LCD TV source indirectly through a 3rd party and will now be a direct vendor to Samsung. PSTS expects to see stable orders and growing sales through this new contract. Minimum order requirements under this contract are 1.2 million units annually and mass production has begun as of November 2006. PSTS expects this will contribute to significant sales starting from the first quarter of 2007, and anticipates the contract to result in at least an additional $8M in annual sales.
Products provided under this contract are sources Printed Board Assemblies (PBA) for 17 and 19 inch LCD monitors which are the most widely produced models of Samsung LCD Monitors, and are the main products of SELS. SELS is working to reach production targets in December '06, while sales increased by more than 20% as compared to October, when the product line was still at Samsung Electronics Corporation in Cheon An. PSTS expects to produce more than 2,000,000 products per year in 2007 by increasing the current production capacity, and adding new production models.
Joo Ho Choi, the manager of PSTS, said "We are pleased to secure stable and growing production through this contract. The contract with SELS is a milestone for PSTS and demonstrates our entry into the EMS (Electronic Manufacturing Service) company sector."
Sang-Don Kim, the CEO and President of CinTel said, "PSTS's contract with SELS is quite meaningful to PSTS and CinTel, because SELS represents a world-class customer and sales growth is expected to be explosive. According to our accounting team PSTS's sales in 2006 and the first quarter of 2007 are expected to increase some 430% compared to sales in 2005, when production first commenced, and 2006 will mark a significant inflection point in the corporate lifecycle of PSTS. CinTel is growing into a "Total Solution Enterprise" in the semiconductor sector by continuing investment and consolidating various parts of the industry."
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