DALLAS and BEIJING, China--(BUSINESS WIRE)--Dec. 21, 1999--CBQ, Inc., The E-Business Marketplace
(OTCBB:CBQI - news), announced today its acquisition of ChinaSoft, Inc. to bring ChinaSoft's software development
services to market in the United States and CBQ's e-business services to market in China for the first time. ChinaSoft is
affiliated with China National Software & Technology Service Corporation (CS&S), a state-owned company of the People's
Republic of China that provides software, integrated computer solutions and service to the 6,000 state-owned enterprises in
China. CS&S, with its available staff of 4,000 software engineers, is among the top 10 systems integrators in China and the top
100 electronic companies in China. CS&S partners in China include Microsoft (Nasdaq:MSFT - news), IBM (NYSE:IBM -
news), Cisco (Nasdaq:CSCO - news), 3COM (Nasdaq:COMS - news), Oracle (Nasdaq:ORCL - news), Fujitsu, and NEC.
CBQ will also acquire, as part of the deal, ChinaSoftInternational.com, a new Internet enterprise that will sell ChinaSoft's
software development services in the United States and globally. CBQ's ChinaSoft will be the distributor in the United States
for the e-business solutions of CS&S.
''ChinaSoft has high-quality, extremely competitive services to offer U.S. companies seeking to take advantage of offshore
software development,'' said John Harris, CEO, CBQ, Inc. ''In turn, ChinaSoft's strong presence in China, through its Chinese
government support, will facilitate an extraordinary opportunity for CBQ to deploy e-business solutions in a large, wide-open
market. We will work intimately within this partnership to determine those services that will have the most beneficial application
in China. That will involve marketing versions of our current services as well as developing new services tailored to specific
opportunities in China. This will be a thrilling time for both parties.''
Chang Guomin, chairman of Beijing CS&S Zhixum Technology Developing Co., Ltd., the CS&S affiliate, agreed. ''Together,
we wish to serve as a bridge between China and the United States on computer and Internet opportunities.''
''Today we announce a significant partnership not only for ChinaSoft but a long-overdue recognition of the importance of the
Chinese software and Internet market,'' said Bart S. Fisher, Chairman of ChinaSoft, Inc. ''ChinaSoft offers CBQ a strong
market presence with an extensive business network and customer base in China,'' Fisher said.
CBQ will use traditional and Internet-based marketing channels and develop a focused sales effort to bring ChinaSoft's services
to the U.S. market on a nationwide basis. ChinaSoft has vast software development expertise and large-scale project
capabilities, supported by a staff of several thousand programmers.
Capital House Merchant Banking, LLC (www.CapitalHouse.com) served as the investment advisor for both sides of the
transaction, under which CBQ, Inc. acquired 100% of the shares of ChinaSoft, Inc. The purchase price of $150 million U.S.
will be paid in shares of CBQ's (restricted) common stock. In connection with the acquisition of ChinaSoft, Inc., the following
individuals were added to CBQ's Board of Directors: Chang Guomin, Song Zhide, Bart S. Fisher, and J. Patrick Dowd. The
current management team will remain.
This news release includes forward-looking statements related to CBQ Inc. that involve risks and uncertainties, including, but
not limited to, quarterly fluctuations in results, the management of growth, market acceptance of certain products and other
risks. These forward-looking statements are made in reliance on the ''safe-harbor'' provisions of the Private Securities
Litigation Reform Act of 1995. For further information about these factors that could affect CBQ's future results, see the
company's filings with the Securities and Exchange Commission (the ''Commission''). Prospective investors are cautioned that
forward-looking statements are not guarantees of future performance. Actual results may differ materially from management
expectations.
CBQ, Inc., The E-Business Marketplace (OTCBB:CBQI - news), is an end-to-end e-business provider focused on solutions
that directly drive client growth to meet current and future business objectives. CBQ Internet services include PriorityLink.net
and PriorityBid.com, PriorityMed.net (currently in beta testing), and PriorityCash.com. CBQ, Inc., founded in 1986, is based
in Addison, Texas, a Dallas suburb. For more information visit www.cbq.com or contact Investor Relations at 972/732-1100.
Capital House Merchant Banking, L.L.C. is a privately-held merchant bank based in Washington, D.C., that has invested in the
development of the Internet through joint ventures with its clients and affiliates, such as Lycos, Ampex, e-Medicine, Refer-Net,
Information Super Station, and Executive Branch Webcasting's service EXBTV, which will televise the activities of the
Executive Branch of the U.S. Government. For more information visit www.capitalhouse.com.
Contact:
VGS Marketing Group, Inc.
Valerie Gabriel-Swenson, 972/395-9034
(Direct Line, 972/741-4400)
vgs@onramp.net
or
ChinaSoft/Capital House, LLC
Joan Worden, 202/337-5411 or 202/342-8113
or
CBQ, Inc.
John Harris, 972/732-1100
investors@cbq.com |
