BEIJING, June 13, 2011 /PRNewswire-Asia-FirstCall/ -- Telestone Technologies Corporation (NASDAQ: TSTC) ("Telestone" or the "Company"), a leading developer and provider of telecommunications local access networks in China, today announced that it has signed a letter of intent (the "LOI") to acquire 100% of Sichuan Ruideng Telecom Corporation ("Sichuan Ruideng" or "SR"). The LOI was signed on May 12, 2011.
Under the term of LOI, Telestone will use a combination of cash and Telestone common stock to fund the acquisition, whose terms are still being finalized. Telestone expects to sign a definitive acquisition agreement with Sichuan Ruideng soon.
Located in Chengdu in Sichuan province, Sichuan Ruideng specializes in telecom network construction and system-integration services. SR was founded in 1993 with registered capital of RMB 32.0 million (approximately $4.9 million). Today, Sichuan Ruideng is one of the largest provides of telecom network engineering services in Sichuan province and southwestern China, which has over 300 employees and about $20 million of average annual revenue in the past several years. Its business mainly covers regions of Sichuan, Yunnan, Guizhou, Hubei, and Qinghai provinces.
"We are pleased to have reached a preliminary acquisition agreement with Sichuan Ruideng, which is an important strategic move in our business expansion strategy in the southwestern China market," commented Mr. Daqing Han, Chairman and Chief Executive Officer of Telestone. "We believe that the combination of Sichuan Ruideng's local knowledge and business relationships with Telestone's advanced technology and marketing and business expertise will significantly enhance our presence in this important regional market. We look forward to providing a greater number of customized products and services to local customers and further gain market share in the near future."
Mr. Yanqun Xie, Chief Executive Officer of Sichuan Ruideng Telecom Corporation stated, "We are delighted at the prospect of joining Telestone. In addition to its high market recognition and its strong industry presence, we believe Telestone's WFDS technology and applications will offer promising business opportunities during the next several years. We hope to work together with Telestone to create value for its shareholders."
About Telestone Technologies Corporation
Telestone is a leader and innovator in wireless local-access network technologies and solutions. The Company has a global presence, with 30 sales offices throughout China and a network of international branch offices and sales agents. For more than 10 years, Telestone has installed radio-frequency (RF)-based 1G and 2G systems throughout China for its leading telecommunications companies. After intensive research on the needs of carriers in the 3G age, Telestone developed and commercialized its proprietary third-generation local-access network technology, WFDS(TM) (Wireless Fiber-optic Distribution System), which provides a scalable, multi-access local access network solution for China's three cellular protocols. Telestone also offers services including project design, manufacturing, installation, maintenance and after-sales support. The Company has approximately 1,200 employees.
Safe Harbor Statement
This release contains certain "forward-looking statements" relating to the business of Telestone Technologies Corporation and its subsidiary companies. Forward looking statements can be identified by the use of forward-looking terminology such as "believes, expects" or similar expressions. Such forward looking statements involve known and unknown risks and uncertainties, including all business uncertainties relating to product development, marketing, concentration in a single customer, raw material costs, market acceptance, future capital requirements, competition in general and other factors that may cause actual results to be materially different from those described herein as anticipated, believed, estimated or expected. Certain of these risks and uncertainties are or will be described in greater detail in our filings with the Securities and Exchange Commission. Telestone Technologies is under no obligation to (and expressly disclaims any such obligation to) update or alter its forward-looking statements whether as a result of new information, future events or otherwise. This press release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of these securities in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of such state or jurisdiction.
Telestone Technologies Corporation
Ms. Yue Zhai, Secretary of the Board
Phone: +86-10-6860 8335 x1105
Ms. Julia Yuan, Investor Relations Associate
Phone: +86-10-6860-8335 x1115
Investor Relations Contact:
CCG Investor Relations
Mr. John Harmon, CFA, Sr. Account Manager
Phone: +86-10-6561-6886 x807 (Beijing)
E-mail: [email protected]
SOURCE Telestone Technologies Corporation