Will Operate as a Wholly Owned Subsidiary for Development of Overseas Markets
BEIJING, Oct. 25 /Xinhua-PRNewswire-FirstCall/ -- MyStarU.com, Inc. (OTC Bulletin Board: MYST), is pleased to announce that its majority owned subsidiary, Subaye.com, Inc. ( http://www.subaye.com ; ‘‘SUBAYE’’), the enterprise video web development, hosting, marketing and e-commerce service provider, today announced the completion on October 23, 2007 of its previously announced acquisition of Media Group Int’l Ltd. ("MGI"), a premier media and marketing management firm. SUBAYE will immediately begin executing the planned integration of the Corporate Video Online/Offline, commercial movie advertising markets, and overseas business operations and networks.
SUBAYE expects the acquisition and the subsequent integration to be a leading provider of corporate video online/offline and product placement advertising in movies. The acquisition broadens its product portfolio and addressable market, helps develop overseas markets, and will immediately increase corporate video members and revenue.
MGI will be combined overseas business groups headquartered in Subaye IIP Ltd.’s offices located at Times Square, Causeway, Hong Kong, and will maintain their current employee base at this location. MGI will operate as a wholly owned subsidiary of SUBAYE. Louis Tang will remain the President of MGI. Under the terms of the transaction, MGI shareholders will receive 100,000 shares of SUBAYE’s common stock as 1.2% of the total outstanding Shares.
"The acquisition of MGI not only makes a significant positive impact to our revenues and profitability, but also diversifies our product line to put us squarely into the new market. Today, we significantly increased the depth and breadth of our sales coverage in the corporate video online/offline and commercial movie advertising markets, especially SUBAYE overseas markets. This acquisition is consistent with SUBAYE’s previously announced commitment to a strategy of growing revenues while increasing profitability and diversifying its channels of distribution and products,” said Yaofu Su, President of SUBAYE.
MGI’s product line includes converged TV/movie DVD distributions, corporate video presentations, a TV programming agency, video-on-demand media systems (VOD), digital advertising systems, product placement in movies, sponsorship management for TV programming, and service assurance. The Company is a leading provider of product placement in movies, which provides filmmakers and advertisers with a cost-effective solution to increase forward capacity and enable future flexibility on existing cinema lines, DVD sales networks, and VOD online. MGI was founded in 2000 and its corporate headquarters are in Hong Kong.
About Subaye.com, Inc.
Subaye.com, Inc. is a Delaware corporation. MyStarU.com, Inc. (OTCBB: MYST) currently owns 67% interests of the Company. The Company, http://www.subaye.com , is a video web development, hosting, marketing and e- commerce service provider, offering a unique corporate video sharing platform for both users and customers. Target clients include potential users in the PRC that demand publishing and sharing abilities for their online corporate videos. The platform consists of the Company’s websites and the Subaye alliance network, which is the Company’s network of third-party websites.
The services are designed to enable internet users to find relevant online video from the Company’s video database, which currently consists of thousands of corporate video profiles, as visible video showcases for presentation. The service provided is distribution through more than 3,000 alliance members (distributors) in China. The alliance members carry out marketing and sales. Subaye Internet Corporate Video serves as a commission base. Alliance members assist corporate users in the studio, including with DV recording, and deliver videos to Subaye video storage and post to video sharing websites, including YouTube.com. Most of the new distributors are the business partners and agents of Baidu and Google, and they will bid for search keywords for online promotion with Baidu.com and other search engines from time to time. The potential users of the Internet Corporate Video service are the 5 million small and medium sized Enterprises in China.
Safe Harbor
The statements made in this release constitute "forward-looking" statements, usually containing the words "believe," "estimate," "project," "expect," or similar expressions. These statements are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements inherently involve risks and uncertainties that could cause actual results to differ materially from the forward-looking statements. Factors that would cause or contribute to such differences include, but are not limited to, changing economic conditions, interest rates trends, continued acceptance of the Company’s products in the marketplace, competitive factors and other risks detailed in the Company’s periodic report Filings with the Securities and Exchange Commission. By making these forward- looking statements, the Company undertakes no obligation to update these statements for revisions or changes after the date of this release.
For more information, please contact:
Ms. Shirley Li,
MyStarU.com, Inc.
Tel: +86-10-6702-6968
Email: IR@mystaru.com
