iPackets Technical Team Wraps Up Another Trip to Accelerate Product Manufacturing, Certification and Facility Construction in China
VANCOUVER, BC, Jan 31, 2007 (MARKET WIRE via COMTEX) -- iPackets International, Inc. ("iPackets") (PINKSHEETS: IPKL), a developer and provider of wireless communications software and equipment for the mining industry, announced today that a technical team headed by Mr. Kouros Goodarzi, iPackets' VP of Engineering, and Mr. Ara Bedrossian, iPackets' Chief Technology Officer, traveled to China last week to follow-up on the iPMine product manufacturing and certification, and facility construction for its Chinese Joint Venture, GuoAn Mine Safety Communication System, Inc. ("GuoAn").
On the office manufacturing facility construction: GuoAn has retained the services of two prominent local architectural firms which each has submitted a number of construction designs, all based on the requirements of the High-Tech Industrial Zone Administration office located in Jiaozuo, Henan province. The iPackets team is in the process of reviewing the proposed design plans to ensure they meet our research and development, manufacturing, and marketing requirements and objectives. The Zone Administration assured iPackets that infrastructure is ready to commence construction as soon as the permits have been secured. The land covers 174,000 square meters with 124,000 square meters usable and a total of 50,000 square meter of building to be constructed.
On the iPMine system certification: The iPackets' technical team and GuoAn's management team held meetings with senior representatives of the MA Office, China Mining Products Safety Approval and Certification Center. The MA Office provided iPackets with additional information on GuoAn's product certification application process. The MA Office also suggested applying for certification of existing devices for test purposes which will enable GuoAn to deploy systems on a short-term basis in an underground mine. In addition, the MA Office asked GuoAn to provide its product standards to be used as a basis for developing its two-way wireless tracking, monitoring, and communication system standards for underground operation. Currently, the MA Office is working on a system standards for tracking based on RFID technology, which is a one-way system as opposed to iPMine's two-way system. "We are very excited to be the first to try to certify a complex system such as iPMine," said Mr. Kouros Goodarzi, iPackets' Vice President of Engineering. He added, "providing new material for a system standard on two-way messaging and dynamic tracking of miners will strengthen iPackets and GuoAn's position in the market significantly."
On the iPMine system manufacturing: The team visited more than half a dozen component suppliers and local equipment vendors for the iPMine system manufacturing. Among the visited facilities, three vendors have MA certified products utilized in various mining operations. The current manufacturing plan stipulates that as GuoAn's facilities are being constructed, the first batch manufacturing will be outsourced to local vendors to expedite product certification and market readiness. This will greatly support our aggressive sales and marketing activities in generating immediate revenues. As per the JV agreement, iPackets will recognize 30% of the JV's revenue and will receive 30% of all JV's profits, as well.
About the Mining and Mine Safety Industries in China
There are more than 280,000 mining enterprises in China, 80,000 of which are state-owned. Of the state-owned mines, more than 700 are classified as large mines, which will soon face Chinese government mine safety regulations. Mine safety has been a major issue with more than 6,000 miners killed in China last year although independent estimates the real figure could be as high as 20,000 miners killed. According to Chinese government statistics, more than 12.2 million people were employed as miners in 2005, and approximately 7.0 million of these were coal miners.
About GuoAn Mine Safety Communication System, Inc.
GuoAn, with a registered capital of $12 million, is a Chinese Joint Venture between iPackets International, Henan YongAn Investment Guarantee Co., and China Coal Information Institute. GuoAn is responsible for the manufacturing, distribution, sales, marketing, installation, deployment, and support of iPackets' iPMine solution to the mining industry in China. The operation is based in the Province of Henan, China's second largest coal producing province.
About iPackets International, Inc. and iPMine
iPackets International is a developer and provider of wireless communications software and equipment for the global mine-safety industry. iPMine, the company's flagship product designed to significantly improve the safety of miners and equipment, is a real-time two-way wireless communications solution that tracks, monitors, and communicates with miners and equipment underground and above ground. For more information, visit www.ipackets.com. |
