AsiaInfo Makes Strategic Investment in Intrinsic Technology; Joint Effort Focuses on China's Growing Wireless Internet Market.Business Editors/High-Tech Writers SHANGHAI, China--(BUSINESS WIRE)--May 8, 2001 AsiaInfo Holdings Inc. (Nasdaq:ASIA Asia (ā`zhə), the world's largest continent, 17,139,000 sq mi (44,390,000 sq km), with about 3.3 billion people, nearly three fifths of the world's total population. ), the leading provider of software products and infrastructure solutions for next generation network operators in China, today announced that it has acquired a strategic equity stake in Intrinsic Technology, a leading provider of wireless Internet infrastructure software products and solutions. Under the terms of the agreement, AsiaInfo and its partner Fidelity Ventures Fidelity Ventures is the venture capital arm of Fidelity Investments. Based in Boston and London, Fidelity Ventures invests in emerging technology companies in North America and Europe. will invest $8.2 million in Intrinsic Technology to acquire a significant minority stake of the company, with an option to invest additional capital and increase ownership up to 51% over the next two years. Existing shareholders of Intrinsic Technology include Acer Technology Ventures and Icon Medialab Asia. Credit Suisse First Boston Credit Suisse First Boston was originally the trading name of the Financière Crédit Suisse-First Boston, a London-based 50-50 investment banking joint venture formed in 1978 between the First Boston Corporation and Credit Suisse. advised AsiaInfo and Goldman Sachs The Goldman Sachs Group, Inc., or simply Goldman Sachs (NYSE: GS) is one of the world's largest global investment banks. Goldman Sachs was founded in 1869, and is headquartered in the Lower Manhattan area of New York City at 85 Broad Street. advised Intrinsic on the deal. Intrinsic Technology's flagship product A primary product of a company, which is typically why the company was founded and/or what made it well known. For example, MS-DOS, Windows and the Microsoft Office suite have been flagship products of Microsoft. CorelDRAW is a flagship product of Corel Corporation. , iDAP (Intrinsic Data Application Platform), is a carrier-grade wireless Internet service provisioning and management system. As part of the strategic alliance, AsiaInfo and Intrinsic will integrate iDAP with AsiaInfo's AICBS convergent billing software and co-develop future product offerings. This will allow both companies to jointly market turnkey solutions that meet the emerging needs of mobile network operators, mobile service providers and mobile virtual network operators in China and globally. Increased wireless Internet usage has created a tremendous need for enabling technologies, as mobile operators introduce value-added services and upgrade their networks. AsiaInfo and Intrinsic's products address the access and billing requirements for revenue-sharing initiatives and other services currently under development. Rapidly increasing SMS (1) (Storage Management System) Software used to routinely back up and archive files. See HSM. (2) (Systems Management Server) Systems management software from Microsoft that runs on Windows NT Server. offerings, particularly under China Mobile's Monternet initiative, and the rollout of GPRS (General Packet Radio Service) The first high-speed digital data service provided by cellular carriers that used the GSM technology. GPRS added a packet-switched channel to GSM, which uses dedicated, circuit-switched channels for voice conversations. (General Packet Radio Service, or "2.5G"), scheduled for late 2001, are just two examples of the market opportunities that Intrinsic and AsiaInfo will jointly target. "Given its clear leadership in IP network solutions and communications infrastructure software, AsiaInfo is an ideal partner," said Jun Wu, CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. of Intrinsic. "The synergies between AsiaInfo and Intrinsic will allow both companies to offer their proven, innovative technologies to the Chinese market and use this expertise to build a truly world class software business." "This deal is the first major step toward defining the wireless Internet technology value chain in China," said Fan Bao, AsiaInfo's Senior Vice President of Business Development and Chief Strategy Officer. "We are confident that this partnership, in light of China's impending im·pend intr.v. im·pend·ed, im·pend·ing, im·pends 1. To be about to occur: Her retirement is impending. 2. entry into WTO See World Trade Organization. , will allow us to expand our software and solutions businesses, capitalize on Cap´i`tal`ize on` v. t. 1. To turn (an opportunity) to one's advantage; to take advantage of (a situation); to profit from; as, to capitalize on an opponent's mistakes s>. the rapidly growing wireless Internet market, and distribute advanced products to existing and new customers on a global scale." Daniel Auerbach, Managing Director of Fidelity Ventures, added, "As a global venture investor in the telecommunications services and technology sector, we see the provisioning of robust wireless data platforms as a major opportunity area, and regard China as a rapidly emerging key wireless market. We are very excited to be supporting this partnership, as it brings together Intrinsic Technology, the leading wireless team in China, with AsiaInfo's unparalleled position and reputation as the leading provider of carrier class solutions to China's telecom industry." About AsiaInfo AsiaInfo Holdings, Inc. (Nasdaq:ASIA) is a leading provider of software and infrastructure solutions for next generation network operators in China, one of the world's fastest growing telecom markets. The company offers telecommunications service providers total network solutions for their Internet infrastructure requirements and develops real time, scalable and adaptable proprietary software for Internet service providers Internet service provider (ISP) Company that provides Internet connections and services to individuals and organizations. For a monthly fee, ISPs provide computer users with a connection to their site (see data transmission), as well as a log-in name and password. , Internet content providers and telecommunications service providers. AsiaInfo's software products include AIOBS and AICBS, convergent customer management and billing software, and AIMC AIMC Associazione Italiana Maestri Cattolici (Italian Association of Catholic Teachers) AIMC Associate of the Inner Magic Circle AIMC Ancient Iron Motorcycle Club AIMC Army Information Management Committee , a carrier-scale messaging product. For more information about AsiaInfo, please visit http://www.asiainfo.com. About Intrinsic Technology Intrinsic Technology develops world-class wireless data software products, including iDAP (Intrinsic Data Application Platform). The Company was founded in 1999 and has approximately 100 employees headquartered in Shanghai under the leadership of CEO Jun Wu, a pioneer in wireless data technologies. Prior to founding Intrinsic, Wu was instrumental to the growth of Sendit, a Stockholm-based provider of wireless messaging services that was acquired by Microsoft and became the Microsoft Mobile Internet Refers to gaining access to the Internet using a lightweight, handheld device. See Mobile IP, PDA, smartphone and mobile TV. Division. For more information about Intrinsic, please visit http://www.intrint.com. About Fidelity Ventures Fidelity Ventures is the venture capital arm of Fidelity Investments, one of the world's largest providers of financial services. Fidelity Ventures has actively invested in early-stage companies for more than 30 years. In the last five years, Fidelity has invested more than $300 million of its own capital in emerging companies in the software, networking, and fixed line and wireless telecommunications industries, including being an early stage investor in AsiaInfo. Fidelity Ventures has offices in Boston, London, Tokyo, and Hong Kong. For more information, please visit http://www.fidelityventures.com. |
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