!SNICKER & SNICKER! (BSNS WIRE) CBQ, Inc. Announces Acquisition of ChinaSoft, Inc.; Companie
CBQ, Inc. Announces Acquisition of ChinaSoft, Inc.; Companies Will Market
E-Business Solutions and Software Development Services in China and the United
States
Business Editors and High Tech Writers
DALLAS and BEIJING, China--(BUSINESS WIRE)--Dec. 21, 1999--CBQ,
Inc., The E-Business Marketplace (OTCBB:CBQI), 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), IBM
(NYSE:IBM), Cisco (Nasdaq:CSCO), 3COM (Nasdaq:COMS), Oracle
(Nasdaq:ORCL), 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), 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.
--30--JMP/na*
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
KEYWORD: TEXAS INTERNATIONAL ASIA PACIFIC
INDUSTRY KEYWORD: SOFTWARE INTERNET E-COMMERCE MERGERS/ACQ
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