BEIJING, Oct. 23 /Xinhua-PRNewswire-FirstCall/ -- Telestone Technologies Corporation Ltd. (“Telestone” or the “Company”)(Nasdaq: TSTC), a leading developer and provider of wireless communication coverage solutions based in the People’s Republic of China, today announced the formation of a subsidiary company named Beijing Telestone Communication Technology Corp. Ltd (the “Subsidiary”) focused on developing and managing Telestone’s overseas businesses.
The Subsidiary will be responsible for all of Telestone’s overseas businesses and aims to provide greater focus to the Company’s international expansion efforts and simplify current reporting lines. The Subsidiary will also seek to identify new opportunities for delivering consistent growth to Telestone’s overseas businesses. Revenue from overseas operations accounted for 2.31% of total revenue in the first half of 2007, up from 0% in the first half of 2006.
The Subsidiary will be led by Mr. Zhang Yongjun, the former COO of Telestone, who will report directly to Mr. Han Daqing, CEO.
Mr. Han Daqing, CEO and Chairman of Telestone, commented: “The expansion of our Company into new markets is an important part of Telestone’s overall growth strategy. Under the leadership of Mr. Zhang, this new subsidiary will focus on new international market opportunities as well as deepening existing client relationships within those countries. While expansion outside of China is a relatively new strategy for Telestone, I am pleased with the initial results and believe that the quality of our products and services will allow us to be increasingly competitive internationally.”
Telestone’s current overseas interests include; branch offices in Vietnam and the United States (both of which were established in 2006), sales contracts in 13 additional countries, and marketing initiatives in 10 further countries. In the United States, the Company’s indoor coverage products have won license agreements from the Federal Communication Commission (FCC) and have passed trials conducted by Verizon. Telestone signed its first US sales contract at the end of 2006 and has since won 10 more contracts there.
About Telestone Technologies Corporation
Telestone provides wireless communications coverage solutions primarily in the PRC. These solutions include products such as repeaters, antennas and radio accessories. Telestone also provides services that include project design, project management, installation, maintenance and other after-sales services. Telestone currently has approximately 800 employees.
Safe Harbor Statement
Statements about the Company’s future expectations, including future revenue and earnings and all other statements in this press release, other than historical facts, are "forward-looking" statements and are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements involve risks and uncertainties and are subject to change at any time. The Company’s actual results could differ materially from expected results. In reflecting subsequent events or circumstances, the Company undertakes no obligation to update forward-looking statements.
For further information please contact:
Telestone Technologies Corporation Ltd.
Todd Lu Qiang Li
Tel: +86-10-8367-0088 x1201
Email: liluqiang@telestone.com
FD Beijing
Julian Wilson
Tel: +86-10-5811-1902
Email: Julian.Wilson@fd.com
FD New York
Peter Schmidt
Tel: +1-212-850-5654
Email: peter.schmidt@fd.com
