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China Mobility Solutions, Inc. Signs an Acquisition Agreement to Acquire Control of Topbiz, an SMS Banking Company in China Thursday August 10, 7:30 am ET
VANCOUVER, British Columbia, Aug. 10 /PRNewswire-FirstCall/ -- China Mobility Solutions, Inc. (OTC Bulletin Board: CHMS - News) is pleased to announce that it has entered into an agreement to acquire control of Beijing Topbiz Technology Development Co., Ltd. ("Topbiz"), a Chinese company providing SMS (short messaging system) services to banks in China. The parties anticipate closing the transaction as promptly as practicable. ADVERTISEMENT
According to the acquisition agreement, the Company will directly acquire 49% of Topbiz and indirectly acquire control of an additional 11% of Topbiz, giving it effective control of 60% of the company. CHMS will pay Topbiz US$3,700,000 in cash and issue 8,081,818 new shares in a Regulation S offering at the deemed price of US$0.46. Topbiz generated US$2.67 million in revenue in 2005, and recorded US$590,000 of deferred revenue. It made a net profit of US$785,000 in 2005, and had US$1.25 million cash-on-hand as of December 31, 2005. All of these figures were prepared in accordance with U.S. generally accepted accounting principles.
Topbiz develops and customizes SMS-based banking systems for banks in China. Through the SMS banking platform Topbiz offers, banks can provide a variety of customized financial information to their client base, dramatically increase the satisfaction of clients and become more appealing to new customers. Topbiz's SMS banking system offers convenience, security and simplicity, and is becoming popular with banking clients. SMS banking makes it possible for customers to check account information or access banking services at any time and place (pay bills, transfer money, check balances). Customers can customize their banking experience through customized menus, personalized settings and reminder notes. Advanced security technology integrated into the system makes viewing account information and paying by SMS safe and worry-free. The SMS banking system is carrier-independent, and compatible with all cell phones that are configured for Chinese SMS.
The value that SMS solutions offer banks is clear. Banks can build up new SMS-based banking services without a large investment, and the benefits are numerous. In addition to its banking services, Topbiz's mobile platform includes features that allow banks to easily and effectively reach their customers for marketing and customer relations purposes. Banks can distribute information to their targeted customers, access instant feedback and make service much more convenient and reliable for their clients. SMS banking can replace some traditional teller services, reducing costs and even generating profits. By implementing the SMS banking system, banks can improve the quality, convenience and cost of services, marketing and customer relations.
Topbiz charges its bank clients for the development and customization of the SMS banking system, and also charges an installation fee and a maintenance fee. In addition, for each SMS sent from the bank, Topbiz receives a portion of the revenue, which is shared with carriers.
The trend toward the adoption of SMS-based services by businesses in China is mirrored in the banking industry. Many banks have recently implemented SMS-based banking services, and many more are currently considering it. With Topbiz's products and experience as a provider of SMS banking solutions, China Mobility Solutions looks forward to a rewarding and profitable expansion of its current operations into this promising sector.
"The addition of mobile banking to our list of currently offered mobile solutions for businesses will allow us to satisfy a wider variety of clients, enter a new industry -- the financial industry -- and build visibility and credibility in the eyes of potential business customers," said Angela Du, President of China Mobility Solutions. "SMS banking is one of the mobile solutions for businesses that CHMS has been considering for a long time. The acquisition of this company will allow us to get into the market directly with a platform that is already developed and proven, and with a company that has already acquired customers and become profitable through its operations."
About China Mobility Solutions Inc.
China Mobility Solutions, Inc. (OTC Bulletin Board: CHMS - News), a pioneer in developing Short Message Services (SMS) as a primary advertising medium in China, provides mobile marketing, branding and enterprise solutions to its rapidly expanding client base of Small and Medium Enterprises (SME). China Mobility also provides other mobile solutions such as mobile email systems and mobile solutions for field sales to SME. Through proprietary profit sharing agreements, China Mobility's advertising audience includes SMS subscribers from China Mobile, China Unicom and China Telecom.
Forward-looking statements
This report contains "forward-looking" statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. All statements other than statements of historical facts included in this report, including, without limitation, the statements regarding our mission to become the number one provider of mobile solutions to businesses in China are forward-looking statements. Forward-looking statements involve risks and uncertainties including, but not limited to, economic and political factors; developments of the Chinese and North American markets and changes in regulatory matters; our business strategies and future plans of operations; the market acceptance and amount of sales of our products and services; our historical losses; the competitive environment within the industries in which we compete; and our ability to raise additional capital, currently needed for expansion.
The Company cautions that forward-looking statements are subject to certain risks and uncertainties that could cause actual results to differ materially from those indicated in the forward-looking statements due to several important factors.
Contact:
Angela Du, President China Mobility Solutions, Inc. 900-789 W. Pender Street Vancouver, B.C. Contact Number: 604-632-9638 Email: investors*chinamobilitysolutions.com Website: www.chinamobilitysolutions.com
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