FONIC AWARDED TWO CHINA CONTRACTS FOR $40 MILLION
FONIC AWARDED TWO CHINA CONTRACTS FOR $40 MILLION NEW YORK, March 30 /PRNewswire/ -- Fonic, Inc. (NASDAQ: FONC)
announced it has been awarded two contracts in China which it expects will generate revenues of over $40 million.
In the first contract, Fonic has received an order for two "TACS" systems cellular phone exchange switches to be installed in two provinces in China. The contract requires the systems to be installed by Dec. 31, 1992, and March 30, 1993, in the provinces, respectively, together with the supply of 15,500 portable phone sets by Dec. 31, 1992. Novatel Communications Inc., (Novatel) a subsidiary of the Alberta government, Canada, will supply the 900 MHz "TACS" systems. Novatel will supply the portable phone sets in SKD format for Fonic's assembly in China and provide full engineering services as Fonic's long-term development partner in China. Fonic has also successfully won a contract for the importation of 200,000 paging receivers to Shandong Province in China, for delivery in phases from Sept. 30, 1992, to March 31, 1993. Fonic will manufacture the paging receivers in the China-licensed factory in the Shenzhen Economic Zone. This is the first contract to come out of a recently signed project agreement with TRL Microwave Technology Inc. (TRL) to develop communication products, including paging receivers and satellite communication products. TRL is a Canadian company which designs complete communication systems and manufactures a range of microwave components and devices. This agreement will provide Fonic with strong and reliable R&D support from North America while providing strong manufacturing support and market penetration for TRL products. The synergies of both companies combined will become a very competitive force in the near future. Chou S. Sheung, president and chairman of the board stated, "Contemplating the wider, open-door policy in China, Fonic intends to build up its opportunities and marketing network by increasing the sales and manufacturing of telecommunication products in the coming years. Fonic will continue to increase long-term value projects in the telecommunications industry. Fonic will build on existing strengths, exploit the synergies among business cooperation with other companies, and create opportunities to enhance our competitive position in the manufacturing of telecommunication products." Fonic, Inc., through its subsidiaries, is engaged in the design, development, manufacture, assembly and marketing of audio products including digital receivers, stereo radio, double cassette recorders, video cassette players and record players, Hi-Fi component systems and video (TV) sets and video recorders (VCRs). -0- 3/30/92 /CONTACT: Sam Witchel of Scharff, Witchell & Co., 212-983-1060, for Fonic/ (FONC) CO: Fonic, Inc. ST: New York IN: CPR SU: CON PS -- NY001 -- 2648 03/30/92 07:00 EST
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|Date:||Mar 30, 1992|
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