IPVoice Communications Inc. Announces Chinese Joint Venture with $1 Million in Contracted Revenues.
DALLAS--(BUSINESS WIRE)--June 1, 2004
IPVoice and GaozhiSoft Open Office to Market
IPVoice Products and Services in China
IPVoice Communications, Inc. (OTCBB:IPVO) today announced a joint venture to market IPVoice products and services in China. This joint venture comes after months of negotiations and business development. The joint venture will market existing IPVoice products and services and pursue the acquisition of Chinese high-tech firms to further expand the IPVoice product line. At the onset of this joint venture, GaozhiSoft has already secured contracts which would realize $1 million in annualized sales of IPVoice products and services. The initial contracts involve the customization and integration of telecommunications software. The two companies are currently working on a sales forecast beyond the initial $1 million in revenue for release in the near future.
The joint venture calls for GaozhiSoft to represent IPVoice products and services in China for which GaozhiSoft will be paid a management fee. The joint venture also calls for the two Companies to jointly pursue and acquire Chinese emerging technology companies in a fashion consistent with IPVoice's existing strategy in the United States.
"We have been looking for a partner with which to build a merger and acquisition strategy empowered by the United States capital markets," said Dr. James Jiang, CEO of GaozhiSoft. Dr. Jiang continued, "After months of meetings with IPVoice both here in China and the United States, as well as in IPVoice's Singapore offices, we are confident IPVoice is the right partner. The existing IPVoice products and services are viable in China today. With Mr. Larry Wu and Mr. Jim Rogers from IPVoice living and working here in China, we believe IPVoice has a realistic and committed merger and acquisition strategy. We have not seen comparable practicality or dedication from any other United States firm."
"Finding the right partner in China is essential to any business strategy in China," said Philip Verges, CEO of IPVoice, "as it is culturally very important that business relationships are borne out of long term familiarity and trust. GaozhiSoft is an established and respected company in China committed to a business development and merger and acquisition partnership with a U.S. publicly traded company. The courtship and mutual due diligence has been thorough and in best interest of both Companies. With $1 million in initial annual sales around which to initiate this joint venture, this partnership is more than a piece of paper and wishful thinking. We have high expectations for both organic sales growth and acquisition opportunities as we establish a local presence in China, one of the most rapidly growing markets in the world."
GaozhiSoft is a software engineering firm headquartered in Shanghai, China. GaozhiSoft specializes in communications software solutions for the Telecommunications industry. GaozhiSoft customers include notable incumbent Chinese Telecommunications Providers. GaozhiSoft is committed to expansion through merger and acquisition and selling GaozhiSoft products and services in the United States.
About IPVoice Communications Inc.
IPVoice is a six-year-old company that has reported as a research and development concern for most of its history. In 2002, IPVoice launched a new business plan, which resulted in the Company posting six consecutive profitable quarters through 2003 and establishing an annualized $15 million in revenue. The Company is actively acquiring early-stage proprietary technology companies and financially distressed systems integration companies in specific global markets. In 2003, IPVoice acquired Infotel Technologies in Singapore and IP Global Voice, led by CEO Peter Geddis, a former Executive Vice President and Chief Operating Officer of Qwest Communications (NYSE: Q - News). The Company recently acquired Medical Office Software Inc. diversifying its communications technology offering into the healthcare industry. RKM IT Solutions of Caracas, Venezuela was also recently acquired as IPVO's entry into the Latin American market.
This press release contains statements (such as projections regarding future performance) that are forward-looking statements as defined in the Private Securities Litigation Reform Act of 1995. Actual results may differ materially from those projected as a result of certain risks and uncertainties, including but not limited to the risks inherent in the integration of Infotel Technologies into IPVoice Communications, Inc business, the ability of IPVoice to restore and stabilize the client base of Infotel and re-establish relationships with key suppliers, the development and market acceptance of the products and services of the combined companies, demand for the telecommunication and other products and related services, domestic and foreign government spending, budgetary and trade policies, economic and political changes in the domestic and international markets where the Company competes, successful deployment of advanced technologies, competitive product and pricing pressures as well as other risks and uncertainties, including but not limited to those detailed from time to time in the Company's filings with the Securities and Exchange Commission.
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|Date:||Jun 1, 2004|
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