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CNCN receives $15M convertible * .50 PPS Major players in Korea make investment in CinTel Corp. valued at fifty cents a share.
LOUISVILLE, Ky.--(BUSINESS WIRE)--CinTel Corp. ("CinTel") (OTCBB: CNCN - News), a leader of Internet traffic management solutions, today announced that on October 24, 2006, it sold an aggregate of $15 million in convertible bonds, convertible to the common stock of the company at $0.50 per share. CinTel plans to use the proceeds of the investment to continue its strategic acquisitions towards a more diverse and profitable business. The investors included KTB China Optimum Fund, one of several venture capital and private equity funds managed by KTB Networks Inc, the largest listed venture capital company in Korea, EMLSI, a KOSDAQ listed company specializing in mobile semiconductors, and Axlon Corporation, KOSDAQ listed company specializing in intelligent network robots and STS Semiconductor & Telecommunications Co., Ltd. As a result of this investment, CinTel anticipates it will have access into other related businesses in addition to its current focus on the ITM (Internet Traffic Management) market. CinTel anticipates that it will expand its business to include semi-conductor planning, design, distribution and sales starting with packaging, testing of semiconductors and the component markets. CinTel believes that redirecting its core business will have a significance influence on the value of the company for its partners and investors. With the drive to participate in the semiconductor market, with a significant growth potential in the near future, Management believes that CinTel will not only continue to contribute to the development of the IT industry, but revenues this year will provide CinTel with the base for stable and rapid growth. Mr. Sang Yong Oh, Chairman of CinTel's board of directors said, "We are very thankful to the investors of KTBnetwork and the other KOSDAQ listed investors for their trust in CinTel and their convertible bond investment. We hope to reward their faith in CinTel by restructuring our organization to become a highly profitable company in the high-growth tech industries such as semiconductors. As we have stated in the past, this significant infusion of capital will no doubt offer CinTel the opportunity to re-list from the over-the-counter bulletin board to a more significant exchange with a wider investor base."
Sang Don Kim, the CEO of CinTel Corp., said, "We are very pleased to receive the $15 million investment from these long-term investors at a tremendous premium to the current stock price of CinTel. Needless to say, this is very good news for current shareholders of CinTel because this investment affirms that significant players have faith in CinTel's long-term vision. While it was not easy to turn CinTel's ITM products into large profits over the past nine years, with this significant investment, CinTel will be able to become a larger, more diversified company with significant profits in the near future. This is merely the beginning of a series of strategic moves that will maximize value for those shareholders who have been and will remain faithful to the Company's long term direction."
About KTBnetwork (www.ktbnetwork.com)
KTBnetwork is an investment company led by a team of highly-qualified and experienced professionals across all business areas and is a leader in value-added investment for the incubation and development of promising forward-looking companies. Since its establishment in 1981, it has invested more than one billion dollars in about 1,000 companies in almost every form of private equity, including start-ups, corporate restructurings, and buyouts. As one of Korea's largest and most prominent private equity companies, KTBnetwork is now preparing itself to become an internationally recognized premier investment group.
About EMLSI (www.emlsi.com)
EMLSI was founded in 2000 as a mobile semiconductor total solution provider in Korea. It is one of the world's largest SRAM solutions providers for mobile application and semiconductor production companies. It introduced PSRAM (Pseudo Static Random Access Memory) to the market in 2004 and has become one of the largest PSRAM suppliers worldwide. It has been listed on the KOSDAQ since 2005 and is publicly traded.
About Axlon (www.axlon.co.kr)
Axlon was founded in 1991 and focuses on technology, SI and DBMS businesses. It is expanding its business range in order to transform itself from a leading ubiquitous mobile solution company into the intelligent robotics and earphone, Bluetooth and mobile applications. It has been listed on the KOSDAQ since 2001 and is publicly traded.
About STS Semiconductor and Telecommunication (www.sts-semi.co.kr)
STS Semiconductor and Telecommunication is a subsidiary of BoKwang Group and the biggest semiconductor company in BoKwang's network of companies. It started as a semiconductor packaging and testing specialized company after spinning off from Samsung Electronics in 1998 and is now a leading semiconductor packaging company, as well as a total solution provider for memory applications for home appliances, semiconductors and TFT-LCD application products. STS has been listed on the KOSDAQ since 2001 and is publicly traded.
About CinTel Corp: (www.cintelcorp.net)
CinTel Corp., based in North America with its main business operations in Korea, provides enterprise technology solutions that deliver faster internal and external network service. Founded in 1997, CinTel introduced Korea's first dynamic server load balancer, which has now evolved into a world-class product line with ever-expanding solutions from key partners and internal development. CinTel's award-winning Internet Traffic Management (ITM) solutions are marketed to customers worldwide, enabling the company's customers to improve Internet and network traffic management, service levels, secure content, user experience, and reduce server loads and bandwidth demands. While CinTel maintains its position as a leader in ITM through continuous research and development efforts, it has also begun expansion into creative new markets and worldwide distribution of Korean based technologies. CinTel is also a recognized leader in Content Delivery Network (CDN). For additional information, please visit CinTel Corp's website.
Safe-Harbor Statement
This press release may contain 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 those detailed from time to time in the Company's filings with the Securities and Exchange Commission.
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