INTAC International Announces Acquisition of Leading Chinese Developer of Management Software for Educational Institution Admini
03 Enero 2005 - 4:11PM
PR Newswire (US)
INTAC International Announces Acquisition of Leading Chinese
Developer of Management Software for Educational Institution
Administration - Acquired company software designated as the
Standard of the China School Administration System by the Ministry
of Education in China ("MOE") HONG KONG, Jan. 3
/PRNewswire-FirstCall/ -- INTAC International, Inc. (Nasdaq: INTN;
FSE: WKN 805768), a provider of a full-range of career development
services to students in China through Beijing Intac Purun
Educational Development Ltd. ("Intac Purun"), its joint venture
with China's Ministry of Education ("MOE"), today announced the
acquisition of Beijing Huana Xinlong Information and Technology
Development Ltd. ("Huana Xinlong"). Huana Xinlong, a leading
Chinese developer of management software for educational
institution administration, is located in Beijing, China. Huana
Xinlong was the Company's strategic partner for the Family-School
Link Communication System ("FSLCS"). FSLCS is a real time
communication solution combining Internet and wireless technologies
that strives to fulfill the instant and interactive communication
needs of teachers and parents. Through FSLCS, parents can receive
frequent updates on their children via Short Message Services
("SMS") and Interactive Voice Recognition ("IVR") services on their
mobile handsets or over Intac Purun's Internet portal JOYBA
(http://www.joyba.com/ ). At the same time, teachers can exchange
questions, comments and feedback with parents instantaneously over
the same advanced telecommunication infrastructure. Huana Xinlong
is also a leading Chinese developer of management software for
educational institution administration with products currently
distributed and installed in more than 5,000 elementary and middle
schools covering 12 Chinese provinces. With the authorization of
the Ministry of Education ("MOE"), Huana Xinlong is planning to
expand and strengthen its nation-wide market coverage during a
distribution campaign starting in early 2005. As part of INTAC,
Huana Xinlong will bundle the school-end sub-system of the FSLCS
solution with its current software and system products. Leveraging
on Huana Xinlong's extensive distribution channel and market
coverage, FSLCS has the potential for a faster market adoption and
an accelerated sales cycle. The market potential is estimated to
exceed RMB 2 billion (US $240 million) per month. The acquisition
was completed in December 2004. The acquisition consideration
issued by the Company in the transaction consists of up to
2,000,000 shares of Company common stock, including 1,000,000
shares issued on closing and up to an additional 1,000,000 shares
contingent on achieving net income of $13 million during the
thirteen month period ending December 31, 2005. "This is a very
positive move for INTAC with the software developed by Huana
Xinlong having been designated as the Standard of the China School
Administration System by the MOE," said Wei Zhou, Chairman and CEO
of INTAC. "This allows Intac to expand its educational services
into the elementary and middle school system sectors and further
solidifies its relationship with the MOE." "The contribution of
Huana Xinlong to INTAC's financial is expected to be very accretive
to both revenues and earnings," said J. David Darnell, Senior Vice
President and Chief Financial Officer. "We fully anticipate that
the acquisition will have an immediate positive impact." The
Company's annual report on Form 10-KSB for the year ended December
31, 2003 and quarterly report on Form 10-Q for the quarter ended
September 30, 2004 may be viewed at the SEC's website
http://www.sec.gov/ . About INTAC International, Inc. INTAC
International, Inc. is focused on the exploitation of strategic
business opportunities available in China and the Asia-Pacific Rim.
With its joint venture with China's Ministry of Education, Beijing
Intac Purun Educational Development Ltd., INTAC provides Chinese
students exclusively with a full-range of integrated career
development, recruiting and lifestyle services. These services are
delivered through the Company's websites, http://www.phrbank.com/
and http://www.joyba.com/ , as well as its print formats and its
local Career Service Centers across China. Forward-Looking
Statements This press release contains certain "forward-looking
statements." Such forward-looking statements involve known and
unknown risks, uncertainties and other factors that may cause our
actual results, performance or achievements expressed or implied by
such forward-looking statements to differ materially from those
projected or implied. Factors that could cause or contribute to
such differences include, among other things: changes in general
business conditions; the impact of competition in our industry,
especially in the Asia- Pacific Rim; the fact that we are an early
stage company with an unproven business model; our need for
additional working capital, particularly to the extent that we are
able to locate a suitable business opportunity; the added expense
structure assumed by us as a U.S. public company; political and
economic events and conditions in jurisdictions in which we
operate; PRC Internet laws and regulations that are unclear and
will likely change in the near future; restrictions on foreign
investment in the PRC Internet sector that are imposed by the PRC
government; the PRC government that may prevent us from
distributing; regulation and censorship of information distribution
in China which may adversely affect our business; political and
economic policies of the PRC government; the risk of the loss of
the agreements, or the exclusivity terms, with the Education
Management Information Center; the high cost of Internet access
that may limit the growth of the Internet in China and impede our
growth; advertising and e-commerce customers that have only limited
experience using the Internet for advertising or commerce purposes;
the acceptance of the Internet as a commerce platform in China
which depends on the resolution of problems relating to fulfillment
and electronic payment; concerns about security of e-commerce
transactions and confidentiality of information on the Internet
that may increase our costs, reduce the use of our Internet portal
and impede our growth; our network operations that may be
vulnerable to hacking, viruses and other disruptions, which may
make our products and services less attractive and reliable;
changes in interest rates, foreign currency fluctuations and
capital market conditions; and other factors including those
detailed under the heading "Business Risk Factors" and elsewhere in
the Company's annual report on Form 10-KSB for the year ended
December 31, 2003 and quarterly report on Form 10-Q for the quarter
ended September 30, 2004, as filed with the Securities and Exchange
Commission. We disclaim any intention or obligation to revise any
forward-looking statements whether as a result of new information,
future events or otherwise. INTAC undertakes no obligation to
update any forward-looking statements made in this media release.
Contact: J. David Darnell, Senior Vice President and Chief
Financial Officer, 469-916-9891, for further information. Internet:
http://www.intac-international.com/ DATASOURCE: INTAC
International, Inc. CONTACT: J. David Darnell, Senior Vice
President and Chief Financial Officer of INTAC International, Inc.,
+1-469-916-9891 Web site: http://www.intac-international.com/
http://www.joyba.com/ http://www.phrbank.com/ http://www.sec.gov/
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