(COMTEX) B: CATHAYONLINE.COM Acquires China ISP
B: CATHAYONLINE.COM Acquires China ISP
NEW YORK, Jun 30, 1999 (BUSINESS WIRE via COMTEX) -- CATHAYONLINE.COM
INC. (OTC BB:CAOL) is pleased to announce the acquisition of Sichuan
Torch Information Technologies Co. Ltd., an Internet Service Provider
(ISP) in the province of Sichuan, China. The move positions The Company
as a joint venture partner with, and operator of, one of only four
government licensed ISP's in a province of 100 million residents.
With 1.4 billion Chinese-speaking individuals worldwide,
CATHAYONLINE.COM is maintaining its focus on becoming an ISP leader in
the Peoples' Republic of China. Strategic domestic and international
partnerships will enable The Company to provide a full spectrum of
services through its China operation, Sichuan Torch. By delivering
cutting-edge services far superior to those currently available,
CATHAYONLINE.COM will achieve an elite competitive positioning.
THE ACQUISITION
CATHAYONLINE.COM has acquired 100% of Sichuan Torch Information
Technologies Co. Ltd., of Chengdu, capital city of the Sichuan
province. The Company's joint venture partner is Chengdu Torch
Industrial & Commercial General Company, holder of one of only four
government licensed ISP's in the province. Sichuan Torch will exist as
the sole operator of this license.
Chengdu Torch will receive 20% of the net profits earned by this ISP
joint venture. Mr. Owen Li, President of the ISP project, as well as
his management team, can earn-out up to a total of 705,000 shares of
CathayOnline Inc., based on specific performance criteria.
SICHUAN TORCH INFORMATION TECHNOLOGIES CO. LTD.
Well established and operational, Sichuan Torch currently employs 28
highly accomplished industry professionals. As the first order of
business following the acquisition, The Company will expand existing
operations within Chengdu city. Expansion into the province's 12
additional major municipalities will soon follow.
Prior services currently provided by ISP's in Chengdu city are limited
at best. Sichuan Torch is currently enacting a marketing strategy that
will allow The Company to offer a multitude of value-added services
never before seen in the province. These will include turnkey systems
for corporate users, Internet fax/phone, system integrations, use of an
"Electronic Mall", trial accounts, dedicated lines, virtual Web and
domain names, on-site training and seminars, Internet consultation and
24-hour support. Uniform pricing policies will also be established to
further entice existing "fee-exhausted" customers.
The Management Team at Sichuan Torch includes Mr. Owen Li, President,
ISP Operations; Mr. Allan Lai, Chief Engineer; Mr. Glen Gu, Network
Manager; and Mr. Tony Xu, Sales Manager.
Mr. Owen Li holds a Master of Science in Computer Science from the
University of British Columbia, Canada. His 12 years of technical
experience in computer communications are complimented by 7 years of
management experience in the telecommunications industry, and a diverse
background in computer consulting.
MARKET POTENTIAL:
CathayOnline.com's Internet Service Provider/e-business (ISP-EBS)
project presently existing in the city Chengdu (Population: 9.8
million) will expand into remaining areas of the province of Sichuan
(Population: 100 million). As the centre of business and technology
development in Western China, Chengdu exists as the logical starting
point in a virtually untapped market of the Internet usage in China. As
one of the most important centres of politics, economics, technology,
and culture in China, it also holds a strategic position in China's
economic development plan.
CATHAYONLINE.COM INC.
The acquisition of Sichuan Torch Information Technologies Co. Ltd.,
serves to reconfirm the Company's commitment to sourcing and acquiring
strategic properties with both significant cash flow opportunities and
established management. CATHAYONLINE.COM INC. will continue to
establish strong brand name recognition through ongoing high profile
joint ventures, extensive use of outdoor advertising, link exchanges,
and banners.
For more information, please visit our updated websites at:
torchnet.com or chengdunet.com
CATHAYONLINE.COM INC.
-----------------------------On Behalf of the Board of Directors
Brian Ransom, Director
More information can be obtained about CathayOnline.com by visiting
cathayonline.com
Statements included in this press release which are not historical in
nature, are intended to be, and are hereby identified as
"forward-looking statements" for purposes of the safe harbor provided
by Section 21E of the Securities Exchange Act of 1934, as amended by
Public Law 104-67. Forward-looking statements may be identified by
words including "anticipate", "believe", "intends", "estimates",
"expect", and similar expressions. The Company cautions readers that
forward-looking statements, including without limitation, those
relating to the Company's future business prospects are subject to
certain risks and uncertainties that could cause actual results to
differ materially from those indicated in the forward-looking
statements.
Copyright (C) 1999 Business Wire. All rights reserved.
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GEOGRAPHY: NEW YORK INTERNATIONAL ASIA PACIFIC
INDUSTRY CODE: COMED
COMPUTERS/ELECTRONICS
INTERACTIVE/MULTIMEDIA/INTERNET
ENTERTAINMENT
MERGERS/ACQ
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