SHENZHEN, China, Oct. 10 /Xinhua-PRNewswire-FirstCall/ -- Jingwei International Limited (OTC Bulletin Board: JNGW; "Jingwei"), one of the leading integrated marketing companies in China, today announced that it has withdrawn its letter of intent of January 21st 2008 and decided not to proceed with the acquisition of Henan Red Flag, an outdoor advertising company which specializes in digital outdoor media. Jingwei has also been repaid the loan extended to Henan Red Flag as part of the letter of intent.
Jingwei has decided to strategically pursue less capital intensive opportunities which provide immediate cash flow by focusing on its core business. This decision was made in light of the economic paradigm shift in China as Jingwei believes the recent significant growth in GDP in China is primarily driven by consumer spending and advertisers will likely increase expenditures on focused solutions like Jingwei's integrated marketing services and a continued focus on telecommunication companies which have experienced consolidation and where Jingwei believes it is able to expand its services and obtain new subscribers.
Regis Kwong, Jingwei's CEO stated: "Management feels that by focusing on expanding its core business, Jingwei's capital will be deployed in the most effective way and it will also maximize shareholder's value. Jingwei intends to take advantage of the changes taking place in the Chinese market by accelerating the deployment of interactive mobile marketing service in more cities".
About Jingwei International Limited
Jingwei is a leading integrated marketing company in the fast growing Chinese market. The Company specializes in data mining and customer relationship marketing services in China. Powered by advanced data mining technology and a proprietary database of over 300 million Chinese consumers, Jingwei enables leading Chinese companies as well as international brands to reach their target audiences. The Company's services include market segmentation, customer trend, revenue analysis and direct marketing. Jingwei is an integrated marketing service Company, providing targeted campaigns via multi media channels including: interactive mobile, telemarketing, direct mail and new media. For more information, please visit the Company's web site: http://www.jingweicom.com .
Safe Harbor Statement
Certain of the statements made in the press release constitute forward- looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements can be identified by the use of forward- looking terminology such as "believe," "expect," "may," "will," "should," "project," "plan," "seek," "intend," or "anticipate" or the negative thereof or comparable terminology. Such statements typically involve risks and uncertainties and may include financial projections or information regarding our future plans, objectives or performance. Actual results could differ materially from the expectations reflected in such forward-looking statements as a result of a variety of factors, including the risks associated with the effect of changing economic conditions in The People's Republic of China, variations in cash flow, reliance on collaborative retail partners and on new product development, variations in new product development, risks associated with rapid technological change, and the potential of introduced or undetected flaws and defects in products, and other risk factors detailed in reports filed with the Securities and Exchange Commission from time to time.
For more information, please contact:
John Bi
CFO
Tel: +86-138-1071-1809
Email: john.bi@jingweicom.com; john.bi.5198@gmail.com
