-- Contract is a first of several phases to be awarded by China Unicom's
headquarters
-- Sinotel's current order book stands at approximately $51.5 million
BEIJING, Feb. 10 /PRNewswire-Asia/ -- Sinotel Technologies Ltd. ("Sinotel" or the "Company," D3W.SI and SNOXY.PK), an innovator in the provision of wireless telecommunications infrastructure and solutions in China, is pleased to announce that the Company has been awarded the first phase of China Unicom's 3G Online Sales & Marketing System (the "System") worth approximately $2.2 million.
Sinotel provides design and supply proprietary solutions to major telecom operators as part of its Network Support Solutions business. Part of a several phase roll out, China Unicom (the "telecom company" or "Telco") has indicated that the total budget allocated for the 3G Online Sales and Marketing System is approximately $22 million, and is expected to be completed over the next eighteen months. To date, China Unicom has only awarded contracts for the first phase.
China Unicom has announced that its strategy moving forward is to focus more on automated online sales and marketing, rather than traditional sales channels. The System will gradually become China Unicom's main platform for sales of 3G products and services and will be deployed countrywide.
The key functions of the System are:
1. Enable subscribers and distributors to effortlessly procure 3G products
and services online;
2. Educate potential customers on China Unicom's products and services;
3. Enable China Unicom to monitor and analyse its subscriber's needs so
that it is better prepared to provide competitive products and services
going forward.
Mr. Jia Yue Ting, Executive Chairman of Sinotel, commented, "We are pleased to have been given the opportunity to work with our China Unicom. The design and supply of proprietary solutions has always been challenging for us but its gives us a chance to know our customers better and understand China Unicom's operations."
Sinotel further announced that as of December 31, 2009, it had approximately $51.5 million worth of firm orders in hand, which it expects will be delivered during 2010.
(All USD figures are based on the exchange rate of US dollars for renminbi as of the week of February 1, 2010).
About Sinotel Technologies Limited
Sinotel began operating in 2002 as a handset distributor and has evolved into a wireless telecommunications innovator that provides a wide range of customized applications and solutions across the telecommunication value chain. Beginning in Shanxi Province six years ago, the Company's business now spans across eight other major provinces. Sinotel customers include well-known major telecommunications companies such as China Unicom and China Mobile.
The Company's key Network Infrastructure Solution is its proprietary multi-carrier wireless system, which enhances customers' wireless telecommunication networks and is compatible with various communication networks such as GSM, CDMA, PHS and WLAN as well as 3G networks such as WCDMA and CDMA2000.
For more information about Sinotel Technologies Ltd., please their website at http://www.sinotel.com.sg . Information on the Company's website and any other website do not constitute a portion of this release.
Forward-looking statements:
Statements contained herein that relate to the Company's future performance, including statements with respect to forecasted revenues, margins, cash generation and capital expenditures are "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements involve a number of risks, uncertainties and contingencies, many of which are beyond our control, which may cause actual results, performance or achievements to differ materially from those anticipated. Such statements are based on current expectations only, and are subject to certain risks, uncertainties and assumptions. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those anticipated, estimated or projected. Among the factors that could cause actual results to materially differ include: general business and economic conditions, particularly the current downturn in the worldwide economy; our ability to obtain adequate supplies of raw materials; our ability to manage our expansion strategy; changes in foreign currency exchange rates; government regulation; difficulties in new product development; changing consumer tastes and our ability to address those changes; our ability to attract and retain highly qualified personnel; The Company undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
For more information, please contact:
Company:
Sinotel Technologies Ltd.
Ben Ng, VP Corporate Communications and IR
Phone: +65-9168-9988
Email: ben@sinotel.com.sg
Investor Relations:
HC International, Inc.
Scott Powell, VP Investor Relations
Phone: +1-917-721-9480
Email: scott.powell@hcinternational.net
