JINAN, China, July 16 /PRNewswire-Asia/ -- China VoIP & Digital Telecom Inc. (OTC Bulletin Board: CVDT) has signed seven contracts within the China Southern Power Grid system ("Southern Grid") since the first virtualization contract was signed with the Guangdong Foshan Power Supply Bureau in February 2010. CVDT's growing market penetration into the Southern Grid system is the direct result of its unique industry leading virtualization solutions and its successful marketing efforts of its System Integrators ("SI") program. CVDT has established itself as a well-known brand and has rapidly been selected as the preferred virtualization solutions provider by the subsidiaries within the Southern Grid system.
China Southern Power Grid Company Limited was established in 2002 and has six wholly-owned subsidiaries including Guangdong Grid, Guangxi Grid, Yunnan Grid, Guizhou Grid, Hainan Grid and Southern Grid International. The company has over 300,000 employees and serves approximately 230 million people, which translates to 17.8% of all the energy consumers in China. China Southern Power Grid is currently ranked 156th among the 2010 Global Fortune 500 companies.
Mr. Li Kunwu, President and CEO of CVDT, was very pleased to see the continuous marketing success in the China Southern Power Grid system. He said, "The Southern Grid represents a very important part of our business development. We have designed a comprehensive and integrated datacenter virtualization solution and disaster tolerance and backup solution for our customers in the Southern Grid system to satisfy their current and future demands. Through our alliance program, which was launched earlier this year, we have reached our goals in the three main parts of the Southern Grid system: Guangdong, Guizhou and Guangxi. I am very excited that the SI alliance program has proven to be a very effective market penetration strategy and I believe our marketing strategy can be applied to other power systems such as the China State Grid in the future."
CVDT is strategically positioned with the Southern Grid and established a virtualization technical support center in Guangzhou, capital city of Guangdong province in May 2010. From the center, CVDT provides the front line technical support services to its customers throughout the entire Guangdong province, particularly to the Southern Grid. The establishment of the technical support center greatly improves the efficiency and effectiveness of our service delivery to our customers.
"Additional technical support centers will most likely be established in other cities where the Southern Grid provides services as we continue to increase our business presence in the Southern Grid system." Mr. Li added, "The Southern Grid will be an important component of our business focus for this year and next. Our goal is to secure a 90% market share in the China Southern Power Grid in the next twelve months which is expected to generate approximately RMB20 million in revenue ($2.95M USD)."
About China VoIP & Digital Telecom Inc.
China VoIP & Digital Telecom Inc. offers virtualization technology application in the People's Republic of China through its wholly owned subsidiary Jinan Yinquan Technology Co., Ltd and Beijing PowerUnique Technologies, Co., Ltd. Through the two subsidiaries, China VoIP & Digital Telecom is well positioned to take full advantage of the tremendous economic growth currently being experienced in China. The Company is currently marketing its integral virtualization solutions and services in China and at this time is in the testing stages of other Information Technology products. More information can be found at http://www.chinavoip-telecom.com .
About Virtualization Technology
Virtualization is a proven software technology that is rapidly transforming the IT landscape and fundamentally changing the way people compute.
Today's powerful x86 computer hardware was originally designed to run only a single operating system and a single application, but virtualization breaks that boundary, making it possible to run multiple operating systems and multiple applications on the same computer at the same time, increasing the utilization and flexibility of hardware.
Virtualization is a technology that can benefit anyone who uses a computer, from IT professionals and Mac enthusiasts to commercial businesses and government organizations. Millions of people around the world use virtualization to save time, money and energy while achieving more with the computer hardware they already own.
Safe Harbor Statement
Certain of the statements made in this press release constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements can be identified by the use of forward-looking terminology such as 'believe,' 'expect,' 'may,' 'will,' 'should,' 'project,' 'plan,' 'seek,' 'intend,' or 'anticipate' or the negative thereof or comparable terminology. Such statements typically involve risks and uncertainties and may include financial projections or information regarding our future plans, objectives or performance. Actual results could differ materially from the expectations reflected in such forward-looking statements as a result of a variety of factors, including the risks associated with the effect of changing economic conditions in The People's Republic of China, variations in cash flow, reliance on collaborative retail partners and on new product development, variations in new product development, risks associated with rapid technological change, and the potential of introduced or undetected flaws and defects in products, and other risk factors detailed in reports filed with the Securities and Exchange Commission from time to time.
For more information please contact
CVDT Investor Contacts:
Michelle Wong
Tel: +86-531-5558-5742
Email: michellewong@chinavoip-telecom.com
Great Wall Research LLC
Dina Ding
Tel: +1-203-252-7266
Email: dding@greatwallresearch.com
