GUANGZHOU, China, June 7 /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 that it has signed a Letter of Intent ("LOI") with Zhengzhou
Wangtian Electronic Technology Ltd. ("Wangtian") to acquire a 60% equity
interest in Wangtian by issuing common stock to the shareholders of the
company. The exact purchase price will be determined upon completion of the
US GAAP audit of Wangtian.
Wangtian is a service provider which provides system integration services
to telecom operators, government institutes, education organizations and
enterprisers. Its un-audited revenue in 2006 is around US$1 million with net
profit of $100,000. During the first 5 months of 2007, the un-audited revenue
is around US$500,000 with $50,000 of net profit.
Within 2 weeks after setting up the branch in Zhengzhou, we successfully
identified one local partner who is willing to work with us to expand our
distribution business in Zhengzhou. The Company believes that this is a
critical step in building a strong corporate infrastructure. With the
established relationship of Wangtian with local telecom operators and
enterprises, the Company will be able to co-operate with local telecom
operators with more competitive edge and be able to set up more retail stores
to facilitate our expansion objective in Zhengzhou.
As stated in an earlier press release, according to published statistics,
the number of mobile phone users in Zhengzhou was approximately 4,527,000 at
end of September 2006, roughly 63% of total population of the city. The
mobile users increased by 1,010,000 during the nine months ended September
2006, which represents a 30% increase for year to year comparison if projected
to the whole year of 2006. According to statistics, the coverage of mobile
users in Zhengzhou is only 63%, compared to 93% in other major cities of
China.
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.
sbigley@aero-financial.com
858-481-8022
