GUANGZHOU, China, Sept. 27 /Xinhua-PRNewswire/ -- Guangzhou Global Telecom Inc. (OTC Bulletin Board: GZGT), a mobile phone handset and pre-paid calling card distributor and mobile handset value-added services provider in the PRC, announced today that the company has successfully set up a retail branch in Beijing, the capital of China. The Beijing branch will be offering wireless products and providing value-added technology services. A local company, Beijing Lihe Jiahua Technology and Trading Company ("Lihe"), is willing to engage in a joint venture with Guangzhou Global Telecom, and the company plans to acquire 60% of Lihe at the cost of RMB1.5 million. Lihe is the agent of several companies which are operating internet games. Lihe is also the agent of China Unicom and intends to cooperate with Net Telecom and China Mobile. Lihe's un-audited revenue in 2006 is around 50 million RMB with 4 million RMB of gross profit.
Beijing, as host city of the Olympic Games in 2008, is the political center of China. It has advantages in both economics and travel, with a population of 17 million, 5.1 million of which is floating. According to statistics, the coverage of mobile users in Beijing was over 100% last year.
Ms. Li Yankuan, the CEO of the Company stated, "The setup of the Beijing branch is a crucial step in the integration of our business throughout China. As the capital of China, Beijing is the most developed city in Northern China. Accordingly, we have targeted the city as the most significant place for us to expand our business."
About Guangzhou Global Telecom
Guangzhou Global Telecom, Inc. is a national mobile phone handset and pre-paid calling card distributor and provider of mobile handset value-added services. Maintaining cooperative relationships with China Telecom, China Mobile and China Unicom, the Company seeks to become the largest sales and distribution center of mobile phones, mobile phone parts and prepaid mobile phone cards in China. GTL plans to introduce new software and services through an expanded network of regional and neighborhood service centers, shops and virtual stores. For details, please visit our website at http://www.guangzhouglobaltelecom.com .
Safe Harbor Statement
Certain of the statements made in the 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:
Steven Bigley
Aero Financial, Inc.
Tel: +858-481-8022
Email: sbigley@aero-financial.com
