DVS Announces Strategic Alliance
Chinapro To Fund Up To $35 Million For Purchasing Key Components from DVS and Producing DVD Products Developed by DVS
MOUNTAIN VIEW, Calif.--(BUSINESS WIRE)--May 25, 1999--Digital Video Systems, Inc. (Nasdaq:DVID - news) announced today that it has entered into a strategic alliance with Chinapro Capital and Investment Co., a corporation owned by agencies of the Chinese Government.
Pursuant to the arrangement, Chinapro will set up production facilities to act as a subcontractor, manufacturing DVD products developed by DVS for sale in China and abroad.
Ms. Kuo, DVS' Co-Chairman and CEO, has spearheaded the establishment of this agreement. She stated,''One of my strategies for the new DVS is to position it as a technology company, focusing on engineering research and development, while forming alliances with strategic partners that have substantial strength in finance, production, and marketing who will provide related products and services.'' She
added, ''To this end, I am pleased to announce the agreement with Chinapro, which implements this strategy.''
Chinapro has completed a variety of domestic or international projects of comparable or substantially greater size. The following are some highlights of this Agreement:
(1) Chinapro will provide up to $35 million dollars in working capital for this project;
(2) Chinapro will provide production facilities and support their operations;
(3) Certain proprietary mechanisms and some other key components will be purchased from DVS;
(4) DVS will provide technical supervision and support for the production lines;
(5) DVS will be in charge of world-wide sales of the products produced
from these facilities; and
(6) Initially the production lines will manufacture the DVD loaders for DVD players, due to the increasing global demand for DVD players. Subsequently, production lines may be added to manufacture DVD-ROM drives or other DVD products developed by DVS.
Let's keep it moving people.... :-)
chris |
