TNTU announces exclusive Microsoft deal-
(BSNS WIRE) Microsoft Commences Strategic Partnership With Tengtu Intern
Microsoft Commences Strategic Partnership With Tengtu International to Jointly
Spearhead Modernization of China K-12 Educational System
Business & High Tech Editors
BEIJING--(BUSINESS WIRE)--Jan. 27, 2000--
Microsoft China to co-market, install and
support educational software;
Begins training 10,000 teachers in
first phase of national rollout
Tengtu International Corp. (OTCBB: TNTU) today announced the
fulfillment of two key elements of a landmark contract between a unit
of Microsoft Corporation (NASDAQ: MSFT) and a Tengtu Chinese joint
venture and its partners (collectively "Tengtu") to work together to
modernize with information technology the national K-12 school system
of the People's Republic of China.
Under the terms of the strategic partnership agreement, Microsoft
(China) Co., Ltd. is to license its proprietary operating and
educational software to Tengtu; install software, train teachers and
provide technical support; contribute funds for marketing jointly
developed educational software products; and establish a demonstration
center for such products at Microsoft China's Beijing headquarters.
At a press conference held in Beijing, Microsoft China announced
that it has taken the first steps to implement the agreement,
appointing Tengtu as its exclusive partner in the Chinese educational
market and providing a comprehensive bundle of key software.
"Microsoft and Tengtu are forming an exclusive strategic
partnership for the Chinese educational market," said C.L. Chen,
Manager of Business Development for Microsoft China. "Microsoft
recognizes Tengtu's unique strengths of solid backing and unequaled
access to the educational establishment. We are delighted to be
working with a winner to meet the information technology needs of
teachers and school children in China, and we will use our best
efforts to support Tengtu in developing the Chinese educational
market," he said.
"Tengtu will be aided enormously by the participation of industry
leader Microsoft in the daunting task of bringing the huge Chinese
school system into the 21st century," said Tengtu International
chairman and CEO Pak K. Cheung.
The Microsoft(R) Windows NT(R) Server operating system, Microsoft
Exchange Server, SQL Server, Proxy Server, BackOffice, Windows 98,
Office 2000 and certain educational software applications have been
bundled on a CD-ROM bearing the names of both Microsoft and Tengtu.
The software has already been shipped to more than 3,000 Chinese
schools.
The Chinese Ministry of Education has planned for 70,000 out of
its 800,000 K-12 schools to be modernized with information technology
in calendar 2000, the first phase of its educational infrastructure
program. So far, approximately 16,000 schools are under contract with
Tengtu International's 57% owned joint venture subsidiary Tengtu
United Electronics Development Co., Ltd. for computer hardware,
software and service.
The average revenue to Tengtu United from school contracts is
approximately US$2,500 per school for software alone. The hardware and
service portions of the contracts are being fulfilled by Tengtu
partners.
As part of the standard package sold to Chinese schools by
Tengtu, teachers from each school will be trained in the use and
maintenance of their new computer systems. Under the terms of the
agreement with Microsoft China, initial training courses will be
administered by Microsoft China personnel. In addition, Microsoft
China is to provide ongoing technical support to the teachers via
telephone hotline.
Training will be conducted at sales and service facilities of
Legend Computer Group (HK: 0992), China's largest computer company.
Training centers for the first flight of approximately 10,000 teachers
are expected to be operational in 27 cities shortly after the Chinese
New Year, February 5th; selected sites have already begun. More
training centers are planned to open in Legend facilities in other
cities as the project rolls out nationally.
Microsoft China has also committed to fund marketing for jointly
developed educational software products in an amount yet to be
finalized, as well as to establish a product demonstration center in
its Beijing headquarters.
About Microsoft Corporation
Founded in 1975, Microsoft Corporation is the worldwide leader in
software for personal and business computing. The company offers a
wide range of products and services designed to empower people through
great software -- any time, any place and on any device.
About Tengtu International Corp.
Tengtu International Corp. is a developer and distributor of
multimedia educational and entertainment software and related
services, operating through a joint venture and subsidiaries in the
People's Republic of China, Hong Kong and Canada.
The company's primary operating unit, Tengtu United Electronics
Development Co. Ltd. ("Tengtu United"), is a joint venture with
Beijing Tengtu Culture & Education Development Co. Ltd. ("Tengtu
China"), the Chinese state enterprise mandated to develop and
implement a comprehensive information technology solution for the
national K-12 school system. Tengtu China, the minority (43%)
stakeholder in Tengtu United, is owned by Legend Computer Group, Great
Wall Computer Group and Tai Ji Computer Group, China's three largest
computer companies.
Tengtu United also holds the exclusive license to electronically
publish educational materials in China, including the texts of the
People's Education Press, the sole source of materials authorized for
use in Chinese schools. It is also involved in the licensing and
domestic production of all domestically and internationally designed
educational software for the Chinese market. In addition, it already
distributes more than 100 titles of its own electronic books and
animated movies and believes that it is positioned to become China's
leading educational software publisher.
Tengtu International's other units include wholly owned animation
and television production studio TIC Beijing Electronics Co., Ltd.;
44% owned educational software developer Iconix International, Inc.
and 55% owned software marketer Edsoft Platforms (Hong Kong) Ltd.
Note: The statements made in this press release for Tengtu
International Corp. may contain forward-looking statements within the
meaning of Section 27A of the Securities Act of 1933 and Section 21E
of the Securities Act of 1934, regarding events, conditions and
financial trends that may affect the company's operating results and
financial position. Prospective investors are cautioned that
forward-looking statements are not guarantees of future performance.
Actual events or results may differ from the company's expectations,
which are subject to various risks and uncertainties some of which are
listed in the company's SEC filings.
This press release was prepared by The Cavior Organization, Inc.,
a public relations firm, based on information supplied by its client,
Tengtu International Corp. The information contained herein is
believed to be reliable, but has not been independently verified by
The Cavior Organization, Inc. None of the information contained in
this press release should be construed as an offer to buy or sell
securities, either directly or indirectly. The Cavior Organization,
Inc. or its officers or employees may from time to time acquire, hold
or sell a position in the securities of Tengtu International Corp.
--30--tia/ny*
CONTACT: Tengtu Int'l
Pak K. Cheung, Chairman & CEO
604/438-9729
or
Microsoft China
C.L. Chen, Manager of Business Development
4/F Kai Yuen Commercial Building
No. 28 Zhichunli, Hai Dian District
Beijing 100086, PRC
or
Agency Contact:
The Cavior Organization
Warren J. Cavior, 212/687-6070
E-mail: caviorg@aol.com
KEYWORD: INTERNATIONAL ASIA PACIFIC WASHINGTON
INDUSTRY KEYWORD: COMPUTERS/ELECTRONICS SOFTWARE HARDWARE
EDUCATION PUBLISHING ELECTRONIC GAMES/MULTIMEDIA MARKETING AGREEMENTS
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