omniture

China BAK Battery Inc. Signs Letter of Intent with Hewlett-Packard Company

2007-08-14 09:19 6159

SHENZHEN, China, Aug. 14 /Xinhua-PRNewswire-FirstCall/ -- China BAK Battery Inc. ("China BAK" or "BAK") (Nasdaq: CBAK), one of the largest manufacturers of lithium-based battery cells in the world, today announced that it has signed a non-binding Letter Of Intent with Hewlett-Packard Company ("HP") (NYSE: HPQ), under which both parties will work together in a set time frame to reach a definitive agreement for BAK to supply lithium ion battery cells to HP.

BAK and HP have held extensive business discussions, including site visits by HP to BAK's manufacturing facilities, product quality and capacity review since September 2006. The focus of these discussions has been on the potential for BAK to supply HP or HP's designated battery pack manufacturers with cylindrical lithium ion battery cells for notebook computer batteries to be used in notebook computers manufactured by HP. HP's key battery pack manufacturers have audited BAK's factory and tested its lithium ion battery cell samples. BAK has agreed, subject to the completion of negotiations and the execution of definitive documentation, to allocate at least 50% of its monthly cylindrical lithium ion battery cell manufacturing capacity to HP or HP's designated battery pack manufacturers. Pricing and delivery terms are subject to negotiation between the parties and the execution of definitive documentation setting forth such terms.

"We are very excited to be working with HP, which is among the world's largest IT companies, with a portfolio that spans printing, personal computing, software, services and IT infrastructure. We recognize the tier one OEM capabilities of HP as very beneficial to our strategy of increasing market penetration and this latest development is a significant milestone in our efforts in developing the OEM market," said Xiangqian Li, China BAK's Chief Executive Officer. "We are encouraged by this progress which resulted from our persistent efforts on pursuing the highest technological standards and product quality. We expect it to boost our product awareness and attract more OEM customers."

Cylindrical lithium ion battery cells represent a fast growing portion of China BAK's sales. In the quarter ended June 30, 2007, revenue from such cells grew 128% from the quarter ended March 31, 2007.

About China BAK Battery Inc.

China BAK Battery Inc. is one of the largest manufacturers of lithium- based battery cells in the world, as measured by production output. It produces battery cells that are the principal component of rechargeable batteries commonly used in cellular phones, notebook computers, cordless power tools and portable consumer electronics, such as digital media devices, portable media players, portable audio players, portable gaming devices and personal digital assistants (or PDAs). China BAK's 1.9 million square feet facilities are located in Shenzhen, PRC, and have been recently expanded to produce new products. China BAK is the largest manufacturer of lithium-ion battery cells for China's cellular phone replacement battery market. More information about BAK (Nasdaq: CBAK) is available at http://www.bak.com.cn.

Safe Harbor Statement

This press release contains forward-looking statements, which are subject to change. The forward-looking statements are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. All "forward-looking statements" relating to the business of China BAK Battery Inc. and its subsidiary companies, which can be identified by the use of forward-looking terminology such as "believes," "expects" or similar expressions, involve known and unknown risks and uncertainties which could cause actual results to differ. These factors include but are not limited to: risks related to China BAK's business and risks related to operating in China. Please refer to China BAK's Annual Report on Form 10-K for the fiscal year ended September 30, 2006, as well as its Quarterly Reports on Form 10-Q for the first three quarters of fiscal 2007, which are filed with the U.S. Securities and Exchange Commission, for specific details on risk factors. Given these risks and uncertainties, you are cautioned not to place undue reliance on forward-looking statements. China BAK's actual results could differ materially from those contained in the forward-looking statements. China BAK undertakes no obligation to revise or update its forward-looking statements in order to reflect events or circumstances that may arise after the date of this release.

For more information, please contact:

China BAK Battery Inc.

Tracy Li

Tel: +86-755-8977-0093

Email: tracylee@bak.com.cn

Source: China BAK Battery Inc.
Related Stocks:
NASDAQ:CBAK
Keywords: Chemical
collection