LOS ANGELES and SHENZHEN, China, April 11 /Xinhua-PRNewswire/ -- Universal Travel Group (OTC Bulletin Board: UTVG), a leading air travel service provider in Southern China, announced today that its wholly-owned subsidiary, Shenzhen Yu Zhi Lu Aviation Service Company Ltd. has completed the acquisition of Shenzhen Speedy Dragon Enterprise Ltd. for US $3 million and 714,285 shares of newly issued UTVG stock, valued at US $1 million.
Shenzhen Speedy Dragon Enterprise Ltd., based in Pearl River Delta, China, is a nationwide cargo logistics company. Speedy Dragon provides railway and express delivery services and also operates as an international and domestic freight forwarding agency for the General Administration of Civil Aviation of China. Speedy Dragon and its affiliated company, Guangzhou Lucky Dragon Transportation, reported pro forma revenues of $9,696,813 for fiscal year 2006 and $7,550,223 for fiscal year 2005. Pro-forma net income for 2006 was $898,674 and $487,665 for 2005. Speedy Dragon acquired Guangzhou Lucky Dragon's assets and operations as of January 1, 2007. The financial information regarding Guangzhou Lucky Dragon set forth above includes the financial results as if the two companies were operating as one during 2006 and 2005.
Chairman and Chief Executive Officer, Ms. Jiangping Jiang said, "Through the Speedy Dragon acquisition, Universal Travel Group has strengthened its position in commercial air cargo transportation services. This will allow us to further expand our services from passenger to cargo transportation, ultimately capturing a larger share of the market and increasing our shareholder value."
About Speedy Dragon Enterprise Limited
Speedy Dragon Enterprise Ltd. is a nationwide cargo logistics company providing commercial, point-to-point parcel and container transportation services. Speedy Dragon has a fleet of more than 200 franchised vehicles and manages warehouses totaling 40,000 square meters (approximately 430,556 square feet), which it uses to stage, transfer and store packages in transit. The annual volume of the company's air cargo transportation accounted for approximately 30% of the total air cargo market in Shenzhen, China. Speedy Dragon's air cargo division has been rated the top sales agent in Shenzhen by China Southern Airline and Shenzhen Airline every year since 1996. For more information about Speedy Dragon, please visit http://www.xunsulong.com .
About Universal Travel Group
Universal Travel Group, through its wholly-owned subsidiary, Shenzhen Yu Zhi Lu Aviation Service Company Ltd., is engaged in providing reservation, booking, and domestic and international travel and tourism services throughout China. The company's core services include booking services for air tickets, hotels and restaurants, as well as tour routing for customers. The company's goal is to become China's leading travel services provider. For more information, visit http://www.chutg.com .
A profile for investors can be accessed at http://www.hawkassociates.com/utvgprofile.aspx. For investor relations information regarding Universal Travel Group, contact Jacalyn Guo at (310) 443-4151, e-mail Jacalyn@chutg.com, or contact Frank Hawkins or Julie Marshall, Hawk Associates, at (305) 451-1888, e-mail info@hawkassociates.com. An online investor kit including press releases, current price quotes, stock charts and other valuable information for investors may be found at http://www.hawkassociates.com and http://www.americanmicrocaps.com . To receive free e-mail notification of future releases, subscribe at http://www.hawkassociates.com/email.aspx .
Forward-looking Statement:
The statements in these news releases contain forward-looking information within the meaning of the Private Securities Litigation Act of 1995. Such forward-looking statements involve certain risks, assumptions and uncertainties. In each case actual results may differ materially from such forward-looking statements. Any statements regarding targets for future results are forward-looking and actual results may differ materially. These are the company's targets, not predictions of actual performance.
