CHONGQING, China, April 22 /Xinhua-PRNewswire/ -- Franklin Towers Enterprises, Inc. (OTC Bulletin Board: FRTW) today announced fourth quarter revenue of approximately US$4.6M, which was generated through their Chinese based subsidiary, Chongqing Qiluo Textile Co. Ltd. ("Qiluo") from the production of approximately 100 tons of raw silk. Qiluo is engaged in both the production and sale of raw silk and coordinates the entire manufacturing process from sericulture, to harvesting and processing the cocoons, through the manufacturing and exportation of either finished or raw silk products.
"We are pleased with the progress that our company has made over these past 6 months," said Mr. Kuang, CEO of Franklin Towers. "We have worked diligently and I believe that the solid revenue result for the fourth quarter is a direct result of the focused efforts of the Qiluo management team. Currently, our facilities are equipped to produce 600 tons of raw silk. As we move toward bringing our facilities up to full operations, which we expect to be as early as this June, we anticipate continued growth in both sales and production for this fiscal year."
The company has raw silk purchase orders for more than 1000 tons. In order to meet this demand, Franklin intends to expand operations through the strategic acquisitions of various other silkworm farms and silk manufacturing facilities. To date, Franklin has entered into a letter of intent with government owned Zhengzhong Silkworm Industrial Development Co. ("Zhengzhong") which owns and operates numerous silkworm cocoon processing centers, and a binding letter of agreement with Chongqing Wintus New Star Enterprises Group, Ltd. ("Wintus") for their silk manufacturing facilities. Both acquisitions would increase the ability of Franklin to meet the demand from their silk customers. Currently, both of these acquisitions are pending the completion of the due diligence investigations of both Zhengzhong and Wintus and their respective assets.
"It is a very exciting time for us right now," commented Mr. Kuang. "We are well positioned to become a leader in the silk manufacturing industry. We have all the pieces coming together at just the right time. We'll be going to full production within the next couple of months, we have significant purchase orders in place and we have strategic acquisitions scheduled to take place in 2008."
Disclaimer:
CAUTIONARY STATEMENT ABOUT FORWARD-LOOKING STATEMENTS
Certain information contained in this Press Release, including without limitation, statements related to Franklin Towers outlook for 2008, which are based on current management's expectations, is considered forward looking statements. Investors and prospective investors are cautioned about significant factors which have in some cases affected our actual results and are in the future likely to affect our actual results and cause them to differ materially from those expressed in any such forward-looking statements. Actual results may also differ as a result of factors over which we have no control, including general economic and business conditions; effects of war or terrorists acts on the capital markets or the Company's activities. We have been delayed in our obligation to our secured lenders and are currently in default. Please refer to the Risk Factors contained in the Company's Form S-1/A and Form 10-K filed with the Securities and Exchange Commission on March 7, 2008, and April 15, 2008, respectively.
