BEIJING, Feb. 10 /PRNewswire-Asia-FirstCall/ -- Telestone Technologies Corporation (Nasdaq: TSTC) ("Telestone" or the "Company") a leading developer of local access network solutions, products, and engineering services, today formalized a response and outlook regarding the new directives from Beijing on the development of China's telecommunications, TV & radio broadcasting, and internet networks.
As reported by Xinhua News Agency on January 13, 2010, "In a State Council meeting, a government directive and 5-year plan was issued to accelerate the integration of telecommunications, TV & radio broadcasting and internet access networks. The meeting further stated that the integration of the three systems will provide China with a better platform for information sharing and stimulate the economy. The meeting confirmed that they will support local companies to meet the directive's integration goals. The directive is in five key objectives:
1. The integration should be tested first at locations or urban regions
with sufficient technical and financial resources before expanding the
program nationwide.
2. The construction and development of networks should include upgrades in
equipment and facilities, and more coverage in rural areas.
3. The government will greatly encourage and facilitate the industry's
development and provide oversight to the marketplace.
4. The government is willing to release policies that will better assist
companies and organizations in the integration process."
(http://news.xinhuanet.com/politics/2010-01/13/content_12804559.htm )
"We anticipated this directive for our industry and feel confident we have developed the technology and business strategies to meet the directive's goals," began Han Daqing, Chairman and CEO of Telestone Technologies. "The integration of delivery networks for telecommunications, media and Internet will avail significant opportunities for the entire industry and we witnessed several industry stocks listed on the Chinese stock exchanges appreciate so quickly, at one point they were halted on the day news of the directive was published. The introduction of our Wireless Fiber Optic Distribution System (WFDS(TM)) addresses this exact challenge for our industry. Simply stated, the challenge is to consolidate services across a network that can provide the bandwidth and speed to deliver all three of China's cellular protocols, broadcast TV, media, internet and voice. We are closely monitoring the new initiatives and further statements made by Beijing in support of these directives. The last time Beijing made statements like this, the 3G industry accelerated very quickly after which time Beijing first identified the need for 3G coverage in China. China then availed more than $70 billion in funds to upgrade China's 1G and 2G infrastructure to 3G. We anticipate a similar path with these new directives, and are confident our technologies and track record of more than 43 successful WFDS(TM) installations will position us at the forefront of this development," Han concluded.
About Telestone Technologies Corporation
Telestone is a leading innovator in local access network technologies and solutions. Telestone is a global company with 26 sales offices throughout China and a network of international branch offices and sales agents. For more than 10 years, Telestone has been installing radio-frequency based 1G and 2G systems throughout China for China's leading telecommunications companies and is currently engaged in 3G system deployment for the wireless carriers. After intensive research on the demands of carriers in the 3G age, Telestone developed its third generation technology, WFDS(TM) (Wireless Fiber-Optics Distribution System), which provides a scalable, multi-access local access network solution for China's three cellular protocols. Telestone offers services that include project design, project manufacturing, installation, maintenance and after-sales support. Telestone Technologies has approximately 1,200 employees.
Safe Harbor Statement
This release contains certain "forward-looking statements" relating to the business and financial results of Telestone Technologies Corporation and its subsidiary companies. Forward-looking statements can be identified by the use of forward-looking terminology such as "believes, expects" or similar expressions. Such forward looking statements involve known and unknown risks and uncertainties, including all business uncertainties relating to product development, marketing, concentration in a single customer, raw material costs, market acceptance, future capital requirements, competition in general and other factors that may cause actual results to be materially different from those described herein as anticipated, believed, estimated or expected. Certain of these risks and uncertainties are or will be described in greater detail in our filings with the Securities and Exchange Commission. Telestone Technologies is under no obligation to (and expressly disclaims any such obligation to) update or alter its forward-looking statements whether as a result of new information, future events or otherwise. This press release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of these securities in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of such state or jurisdiction.
For further information, contact:
Company:
Ren Hu, Board Secretary
Tel: +1-201-887-0415
Email: huren@telestone.com
Investor Relations:
John Mattio
HC International Inc.
Tel: +1-203-616-5144
Email: john.mattio@hcinternational.net
