MORE NEWS ** CHCL **: (COMTEX) B: Hitsgalore.com Proposed $20 Million Licensing Deal with China Continental
RANCHO CUCAMONGA, Calif., Apr 12, 2000 (BUSINESS WIRE) -- Hitsgalore.com Inc.
(OTC BB:HITT), announced today that it has proposed to license its concept and
technology for five years to China Continental, Inc. (OTC BB:CHCL) for $20
million. The proposed licensing agreement would provide China Continental with a
five-year exclusive license to use Hitsgalore.com's business plan, certain
technology, software programming and support of its business plan in the Asian
market.
Hitsgalore.com's proposed licensing grant would authorize China Continental to
utilize its highly successful search engine technology and key word bid and rank
program in connection with services it plans to develop for Asian markets. It
could also utilize Hitsgalore.com's other proprietary portal services such as
hitsmail, instant banner maker, voicemail, stock quotes, custom music cds and
voice banners. Hitsgalore.com will also assist China Continental in the
conversion of the business plan to other languages and help with the adaptation
of its technology and portal services for use in Asia.
Hitsgalore is currently in negotiations with China Continental Inc., a Hong-Kong
based business developing company, to form a new joint venture -- Hitsgalore.com
Asia. The terms of the agreement would provide both partners access to and the
ability to capitalize upon the future growth opportunities that exist within
many areas of the developing Asian Internet sector.
The proposed $20 million licensing agreement with China Continental would be
payable as ten million in cash and the number of shares of unrestricted common
stock of CHCL, calculated as of the average of the bid and ask for the closing
share price, equivalent of ten million US dollars.
Dorian Reed, Chairman of Hitsgalore.com said, "This proposal will make it
possible for both companies to quickly establish market dominance in Asia with
Hitsgalore's unique business model. It will also provide Hitsgalore.com with a
fresh new revenue source that can be repeated worldwide."
China Continental, Inc., traded on the OTC Bulletin Board market since 1995, is
a holding company with over ten years of experience in developing turnkey
businesses. Its core activities include supplying manufacturing technology on a
turnkey basis, high technology manufacturing techniques in primary industries,
and developing and providing technologies in agricultural genetics and farming.
The Company's agricultural genetics and farming activities are centralized in
the Inner Mongolia province of China, covering an area of 406 square kilometers
to commercialize its genetic techniques in breeding as well as propagating
superior livestock and products in its own research and development institute.
Hitsgalore.com (www.hitsgalore.com) has a unique business model of giving away
free banners, lifetime banner placement, and other Portal Services. The Company
generates revenue from its keyword bid and rank program, sponsorships of portal
services, and local city editions. Hitsgalore.com strives to provide porn-free
searching and does not accept or encourage any porn or adult-content listings on
its site. The company is also involved in the rapidly growing
business-to-business e-commerce sector through its unique Hitsgalore Business
Exchange 2000 (HBX2000) (www.hbx2000.com) portal service. Hitsgalore.com is the
innovator and developer of the first B-2-B Internet Business Exchange that
offers a trade organization to provide pre-qualified "one on one sales
introductions" for its listed companies; the Company is the market leader in
this newly unearthed market niche.
Hitsgalore.com believes its business model compares favorably with others in the
B2B Internet e-commerce markets such as Ariba Inc. (Nasdaq:ARBA), Commerce One
Inc. (Nasdaq:CMRC), Oracle (Nasdaq:ORCL) and SAP AG (NYSE:SAP).
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