SHENZHEN, China, Jan. 6 /Xinhua-PRNewswire/ -- Diguang International
Development Co., Ltd. (OTC Bulletin Board: DGNG - News) ("Diguang") today
announced that on January 3, 2007, the Company exercised its option to
purchase from Sino Olympics Industrial Limited all of its 65% equity interest
in North Diamond International Co., Ltd. As of September 30, 2006, North
Diamond's total assets were $4.4 million, its net asset value was $2.7 million,and its total net revenues for the nine months ended September 30, 2006 were $2.3 million. Sino Olympics currently owns 75.25% interest of Diguang International Development Co., Ltd. The shareholders of Sino Olympics are Song Yi and Song Hong, the Chief Executive Officer and Chief Operating Officer, respectively, of Diguang International. The purchase price determined in accordance with the Amended and Restated Purchase Option Agreement was estimated at approximately $2.0 million, subject to the final audit report as of December 31, 2006.
North Diamond is a holding company whose wholly owned subsidiary, Dihao
(Yangzhou) Co., Ltd., focuses on developing, manufacturing and marketing
backlight products for large-format electronic display devices and provides
relevant technical services in China. Dihao started operating activities in
December 2005. For 2007, Dihao will be focusing on the production of 19" CCFL
backlights for computer monitors, a key new product of Diguang launched in
2006. The capacity for 15"-19" CCFL backlights is currently 150,000 pieces
per month.
"We are pleased to consummate this acquisition, which will support our
efforts to effectively gain additional market share in the Yangtze River
Region, an important LCD manufacturing base. With our existing manufacturing
facilities in Guangdong Province, we have established ourselves as a leading
backlight supplier in the South China LCD manufacturing base," commented Song
Yi. "By securing additional manufacturing infrastructure close to our
prospective customers in the Yangtze River Region, we can minimize our
response time and logistical costs, providing us with enhanced growth and
industry leadership opportunities in this important market."
About Diguang International Development Co., Ltd.
Diguang, through its subsidiaries, specializes in the research,
development, production, sale and distribution of backlights and backlight
technologies. A backlight is the typical light source of a liquid crystal
display (LCD). The Company is focused on providing LED and CCFL backlights
for international producers of televisions, monitors, cellular phones, digital
cameras, DVDs and other home appliances. Diguang currently develops an
average of approximately 50 new products per month. Diguang is a Nevada
corporation with its manufacturing subsidiary located in Shenzhen, PRC, and
its sales and marketing subsidiary located in the British Virgin Islands.
Safe Harbor Statement
This press release contains forward-looking statements made under the
"safe harbor" provisions of the U.S. Private Securities Litigation Reform Act
of 1995. Forward looking statements are statements that are not historical
facts such as statements that the acquisition of North Diamond will support
our efforts to effectively gain additional market share in the Yangtze River
Region; and by securing additional manufacturing infrastructure close to our
prospective customers in the Yangtze River Region, we can minimize our
response time and logistical costs, providing us with enhanced growth and
industry leadership opportunities in this important market. Such forward-
looking statements are based upon the current plans, estimates and projections
of Diguang's management and are subject to risks and uncertainties, which
could cause actual results to differ from the forward looking statements.
Therefore, you should not place undue reliance on these forward-looking
statements. The following factors, among others, could cause actual results to
differ from those set forth in the forward-looking statements: business
conditions in China, weather and natural disasters, changing interpretations
of generally accepted accounting principles; outcomes of government reviews;
inquiries and investigations and related litigation; continued compliance with
government regulations; legislation or regulatory environments, requirements
or changes adversely affecting the businesses in which Diguang is engaged;
fluctuations in customer demand; management of rapid growth; intensity of
competition from other providers of backlights; timing approval and market
acceptance of new products introduction; general economic conditions;
geopolitical events and regulatory changes, as well as other relevant risks
not included herein, including but not limited to risks outlined in the
Company's periodic filings with the U.S. Securities and Exchange Commission.
The information set forth herein should be read in light of such risks.
Diguang does not assume any obligation to update the information contained in
this press release.