Agreement Marks MSU's Entry Into Chinese Market
MILTON KEYNES, ENGLAND--(BUSINESS WIRE)--April 6, 1999-- MSU Corporation (OTC BB: MUCP) an Internet set-top box company, announced today that it has signed a manufacturing and distribution agreement with Shanghai Thakral to manufacture for worldwide customers and to distribute in China, MSU's affordable Internet set-top box.
MSU's set-top box makes home computing as easy as watching television. The box will bring entertainment, education, and communications technology into the homes of many families who could not otherwise afford it. The box utilizes MSU's proprietary Internet browser that can display both Old and New Chinese, is easy to use and connects to a standard television monitor using a PC-like input device such as a keyboard, joystick or mouse.
Wynford P. Holloway, chairman, CEO and president of MSU Corporation, commented, ''This agreement is significant because it marks Shanghai Thakral's validation of the MSU set-top box, and it is also demonstrates MSU's commitment to the Chinese market. We have visited China 20 times over the past two years, a clear indication of our commitment to bring advanced technology and products to China.
''We are thrilled to be able to provide the people of China with access to the Internet, email and multimedia. Because our set-top box was deliberately developed to be both economical and user friendly, we believe it will be well received. Although personal computer penetration into Chinese households is low, statistics published in state newspapers show that China has an installed base of 320 million television sets, and that new television sales average 30 million units per year. Furthermore, the Chinese telephone infrastructure is in place in all 33 major cities and in most rural areas.
''As previously reported, our redesigned product now includes improved video quality, Java script, SSL, Frames, a Smart Card reader, and an Ethernet version. When ordered in volume, the cost has been reduced to the $140/$150 (US) range, including an infrared keyboard. This price is available worldwide. In addition, we anticipate further enhancements and price reductions over the next twelve months.
''Shanghai Thakral is a Chinese based subsidiary of Thakral, a multibillion dollar company with offices in 34 countries and with over 2,000 distributors throughout Asia. It is also a major manufacturer of televisions, video CDs, VCRs and DVD players, which the company plans to integrate with MSU'S design. Additionally, MSU has supplied product samples to other Chinese companies with the assistance of Thakral. This contract will only enhance the opportunities for additional agreements,'' Mr. Holloway concluded.
Roger Wu, general manager of Shanghai Thakral, said, ''MSU's product is clearly the most attractive for the typical Chinese consumer. Its ease of use and affordability make it distinctive. We believe set-top boxes will be a significant new category of electronics that will eclipse the VCD phenomenon.''
VCD technology is the foundation for a class of consumer electronics devices popular in China. Video CDs are similar to other video devices such as videocassette recorders, DVD and laserdisk players. In China, movies and other entertainment are commonly made available in a multidisk VCD format similar in appearance to audio CDs.
MSU's technology provides a completely open platform that gives the customer the freedom to select any Internet Service Provider they choose, with MSU having the ability to upgrade and update software over telephone lines. MSU is the only solution that uses its own Chipset, email client and Browser, reducing time to market and allowing the company to economically fulfill enhancement requests.
According to industry sources, it is estimated that Internet use by the year 2005 will exceed 126 million users in the U.S., 34 million in Japan, 17 million in Germany, and 17 million in Canada. In China, where there were only 600,000 users in 1997, 10 million are projected for the year 2000, and that number is projected to grow to 37 million by the year 2005.
MSU Corporation designs and develops computer chips and chip sets principally for use in consumer electronic products. Most of the company's chips are capable of multiple functions and eliminate the need for additional chips. Moreover, they diminish the risk of malfunction and error, permit more efficient circuit-board designs and are available at a low cost. In addition to computer chips, MSU develops consumer electronic products and reference platforms for itself and other companies. Its SlipStream Internet access technology enables anyone with a television and regular telephone line to access the Internet and send and receive email. And when used with MSU's customized, proprietary browser, SlipStream allows users to access and interact with foreign web sites in their native language. MSU also offers custom services in chip design, hardware and operating-system development, computer peripheral-design development and application-software development, consulting and sourcing. For more information, visit MSU Corporation's web site at msu.co.uk. This release contains forward-looking statements which are based on current information available to management and which are subject to other important factors disclosed from time to time in the company Form 10-K and Form 10-Q, Registration Statements and other Securities and Exchange Commission filings, including specifically, among other factors, changing market and economic conditions.
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Contact:
MSU CORPORATION
Ken DiPaola, SVP
Elisa Keys, VP--Media Relations
Porter, LeVay & Rose, Inc.
212/564-4700
or
Wynford P. Holloway, president
011-44-1908-232-100 |
