1 more that is sitting on the back of that fast plane to China is TNTU. I have been accumulating a little here and there. Kind of a sleeper. But who knows.
>>(COMTEX) B: Software Developer Tengtu International Cuts Loss by 61%
B: Software Developer Tengtu International Cuts Loss by 61% in Fiscal 1999;
Sets $4.6 Million Funding to Jump-start $30 Million Sales to China Schools
TORONTO, Nov 30, 1999 (BUSINESS WIRE) --
Sees relationships with Chinese Ministries of Education and
Information Technology as keys to opening up
a huge post-WTO China market
Tengtu International Corp. (OTCBB: TNTU), developer of educational
and entertainment software, reported that its loss was cut by 61% in
the fiscal year ended June 30, 1999 to $1,662,947 or nine cents per
common share from $4,219,004 or twenty-two cents per common share
recorded in the twelve months ended June 30, 1998.
Revenues declined by 50% to $2,344,873 from $4,646,355 impacted by a
shortage of working capital due to reluctance of lenders and equity
investors to participate in Asian markets.
Tengtu International announced that its subsidiary, Tengtu United
Electronics Development Co., Ltd. ("Tengtu United"), has received a
funding commitment for $4.6 million from the company's joint venture
partner Beijing Tengtu Culture & Education Development Co., Ltd.
("Tengtu China"). The earmarked funds come from loans already received
by Tengtu China itself from two leading Chinese banks, China Min Sheng
Bank and China Agriculture Bank. Tengtu China is the state-owned
enterprise assigned by the Chinese Ministries of Education and
Information Technology to modernize the country's national
kindergarten-through-grade 12 ("K-12") educational system.
"We are highly confident that the new funding intended for Tengtu
United will enable it to resume fulfilling its mandate to bring China's
K-12 schools into the 21st century," said Tengtu International chairman
and CEO Pak Cheung.
In the first phase of the Chinese government's fast-track educational
TORCH programs, Tengtu United will develop and install computer network
systems and educational software in 70,000 schools initially out of 800,
000 K-12 schools in China.
Cheung forecast that in calendar 2000, Tengtu United would fulfill its
sales and service contracts with at least 12,500 of the TORCH schools.
He estimated that revenues from these 12,500 contract installations
alone could approach $30 million. There are fewer than 20 million
Tengtu International common shares presently outstanding.
"China's opening to the West as a new member of the World Trade
Organization will offer more profit opportunities for Tengtu
International, through Tengtu United, to add hardware, networking,
training and especially electronic publishing to its present software
product line," said Cheung. Tengtu United, through Tengtu China, owns
the exclusive license to publish electronic books for Chinese schools.
All figures are stated in U.S. dollars.
About Tengtu International Corp. Tengtu International Corp., which
began operations in 1996, is a developer and distributor of multimedia
educational and entertainment software and related services, operating
through joint ventures and subsidiaries in the People's Republic of
China, Hong Kong and Canada. Actively involved in multimedia product
development, domestic production, distribution and OEM bundling, the
company is intimately familiar with how business is conducted in China
and is prepared to assist world-class companies to share in the
benefits of doing business in China.
The company's joint ventures and subsidiaries include 57% owned Tengtu
United Electronics Development, Co. Ltd. ("Tengtu United"); wholly
owned TIC Beijing Electronics Co., Ltd. ("TIC Beijing"); 44% owned
Iconix International, Inc. ("Iconix"); and 55% owned Edsoft Platforms,
Inc. ("Edsoft").
About Tengtu United Tengtu United is currently one of the largest
developers of educational software in China. It is the primary
operating subsidiary of Tengtu International, as well as of minority
(43%) stakeholder Beijing Tengtu Culture & Education Development Co.
Ltd. ("Tengtu China"). Tengtu China is the state enterprise created by
the Chinese government through China's three largest computer companies
to serve as the country's official gateway for all domestic and
international educational and entertainment software.
Through its strategic relationships within the highest levels of the
Chinese government and software industry, Tengtu United has won
assignment of the development and implementation of a comprehensive
information technology solution for China's national K-12 educational
system, consisting of more than 800,000 schools. It also has been
granted the exclusive license to electronically publish educational
materials, including converting to electronic format the paper texts of
the People's Education Press, the sole source of materials authorized
for use in Chinese schools. It is also involved in the licensing and
domestic production of all domestically and internationally designed
educational software for the Chinese market.
In addition, the company already distributes more than 100 titles of
its own electronic books and animated movies and believes that it is
positioned to become China's leading educational software publisher.
About TIC Beijing Wholly owned subsidiary TIC Beijing commenced
operations in July 1997. Its primary business is to provide technology
services to the entertainment industry in China, focusing on animation
and multimedia.
TIC Beijing currently holds a leading position in the domestic movie/TV
industry as the only Chinese production company offering a
comprehensive range of services such as 2D and 3D animation production,
digital integration of visual effects for television/film
post-production, TV program packaging, advertisement production and
music video editing/synthesis at its studios in Beijing.
About Iconix Iconix is a Toronto-based company which develops and
markets middleware network management software exclusively for the K-12
educational software market worldwide. Iconix's UserNet(TM) product
allows non-technical school staff to manage complex computer networks
with an easy to use tool set. All computing resources, including
personal computers, printers, internet resources, software applications
and userfiles can be centrally managed through UserNet(TM), resulting
in savings in costs and administrative task time. UserNet(TM) is
currently installed on more than 75,000 computers in more than 2,000
schools in the United States, Canada, France, South Africa and China.
About Edsoft Joint venture Edsoft Platforms was established in July
1999 to market and sell educational software (including products
developed by Tengtu United and Iconix) tailored to the educational
market in Hong Kong.
Note: The statements made in this press release for Tengtu
International Corp. may contain forward-looking statements within
the meaning of Section 27A of the Securities Act of 1933 and
Section 21E of the Securities Act of 1934, regarding events,
conditions and financial trends that may affect the Company's
operating results and financial position. Prospective investors
are cautioned that forward-looking statements are not guarantees
of future performance. Actual events or results may differ from
the Company's expectations, which are subject to various risks
and uncertainties listed in the Company's SEC filings.
This press release was prepared by The Cavior Organization, Inc., a
public relations firm, based on information supplied by its client,
Tengtu International Corp. The information contained herein is believed
to be reliable, but has not been independently verified by The Cavior
Organization, Inc. None of the information contained in this press
release should be construed as an offer to buy or sell securities,
either directly or indirectly. The Cavior Organization, Inc. or its
officers or employees may from time to time acquire, hold or sell a
position in the securities of Tengtu International Corp.
Copyright (C) 1999 Business Wire. All rights reserved.
Distributed via COMTEX.
-0-
CONTACT: Company Contact: Tengtu International Corp., Toronto
Pak Cheung, Chairman & CEO, 604/438-9729
or
Media Contact: The Cavior Organization, New York
Warren J. Cavior, 212/687-6070
caviorg@aol.com
WEB PAGE: businesswire.com
GEOGRAPHY: INTERNATIONAL CANADA
INDUSTRY CODE: SOFTWARE
HARDWARE
EDUCATION
EARNINGS
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