ASTV - big earnings, low share price.
Tuesday July 20, 4:08 am Eastern Time
Company Press Release
Asian Star Acquires Control of Hong Kong CD Manufacturing Firm with Annual Sales of US$37 Million
HONG KONG--(BUSINESS WIRE)--July 20, 1999--Asian Star (Hong Kong) Limited, a wholly owned subsidiary of Asian Star Development, Inc. (NASD OTC BB: ASTV), with its principal office in Hong Kong, has signed an agreement with Harmonic Hall Investment Holdings Ltd. (Harmonic), a Hong Kong Corporation, whereby ASTV has acquired 64% ownership of Harmonic in exchange for 3,870,968 shares of ASTV Restricted Common Stock, par value $.001.
Harmonic was formed in 1976 as a cassette duplication factory and gradually developed into a manufacturer providing a full spectrum of one-stop service to the entertainment and software industries, and started the manufacturing of rewritable media in 1998. Products include CD-RW, DVD, CD, CD-Rom, VCD, LD, Stampers, Wter Mrk CD, Cassette and VHS. The client base has extended to a group of over 300 active customers, including Philips (NYSE: PHG - news), BASF (NASDAQ: BASFY - news), ACER, IBM (NYSE: IBM - news), Microsoft (NASDAQ: MSFT - news), Mattel Toys (NYSE: MAT - news), Polygram (NYSE: PLG - news), Warner Music (NYSE: TWX - news), BMG, EMI. Harmonic's projected revenues for 1999 is approximately $37 million US, with an anticipated net profit of approximately $11 million US.
Stephen Chow, President of ASTV stated, ''We are delighted to acquire controlling interest in Harmonic. After our receipt of the Due Diligence Report completed by PriceWaterhouseCoopers, we are confident of a prosperous future for Harmonic and the CD-RW business, and we intend to expand our presence in the international market.''
As reported in the Economist Magazine (June - July 1999) : ''DVD is fast becoming the most important consumer-electronics product since the VCR. ....DVD sales are on a tear: DVD sales could double this year, to just over 2 million units, and reach 5.6 million by 2002, says forecaster Info Tech Inc.''
To receive further corporate information:
Investor Relations: 1-415-566-2503
1-604-878-7600
or visit www.asianstardev.com.
Hong Kong: Contact Stephen Chow, President,
Asian Star Development: 011-852-2721-0936
or e-mail : info@asianstardev.com.
The above statements in regard to Asia n Star Development, Inc. which are not purely historical are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including Asian Star Development, Inc.'s beliefs, expectations, hopes or intentions regarding the future. All forward-looking statements are made as of the date hereof and are based on information available to the parties as of such date. It is important to note that actual outcome and the actual results could differ materially from those in such forward-looking statements. Factors that could cause actual results to differ materially include risks and uncertainties such as technological, legislative, corporate and marketplace changes.
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Contact:
Asian Star Development, Hong Kong
Stephen Chow, 011-852-2721-0936
e-mail: info@asianstardev.com.
or
Investor Relations: 1-415/566-2503
1-604/878-7600
www.asianstardev.com.
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