HONG KONG, Jan. 24, 2001 (PRIMEZONE) -- Neurotech Development Corporation (OTCBB:NURO) announced today that it has entered into a comprehensive joint venture with China Chen South America Construction Contracting Co. Ltd., one of China's largest multinational conglomerates ("CCS"). This joint venture, which is to be incorporated in Hong Kong under the name International Humanitarian Development Ltd., will build hospitals, nursing homes, schools, railways, and related infrastructure projects throughout the world. Initially, it will focus on constructing hospitals in Indonesia and China.
CCS and it subsidiaries engage in a broad variety of businesses, including healthcare, where they own and operate more than 32 hospitals and 7 rehabilitation centers; education, where they operate almost 200 different types of schools; railways, where it is estimated that they handle over 16% of China's rail traffic; real estate development; environmental projects; and construction, where they construct all types of buildings, bridges, railroads, roads, and other works throughout the world. CCS will contribute cash and construction, finance, engineering and project management to the joint venture.
Neurotech has developed a rapid deployment healthcare system primarily for the third world which contemplates marketing "turnkey" health facilities by providing modular buildings, equipment supply, hospital management and healthcare education. Currently, Neurotech has contracts in excess of US$1 billion for the construction of modular and tertiary hospitals in Indonesia and China. Neurotech will contribute cash and these contracts to the venture.
CCS Vice Chairman, Zhao Lian-yu, will serve as managing director of this joint venture. During his tenure with CCS, CCS has grown to more than 4,000 enterprises with well over 200,000 employees. Mr. Zhao's expertise is in management and finance.
NURO Vice President, Lawrence Artz, will serve as chairman of the joint venture. Mr. Artz is the creator of Neurotech's proprietary healthcare system as well as its Doctors4Doctors physician services subsidiary.
The joint venture agreement, which includes three subordinate agreements, will cover the joint venture's activities in Indonesia and China, as well as other parts of Asia, Eastern Europe and Africa, where NURO is attempting to negotiate additional contracts.
The venturers believe that the combination of CCS and NURO will create one of the most exciting and diverse entities in the healthcare field by vertically integrating construction, healthcare delivery systems, infrastructure creation, finance, governmental contracting and compliance, engineering and architecture into one entity. The joint venture will target the developing world where the parties feel the demands for healthcare education and infrastructure are greatest.
Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995: Certain statements contained in this press release are not based on historical facts, but are forward-looking statements that are based upon numerous assumptions about future conditions that could prove not to be accurate. Actual events, transaction and results may materially differ from anticipated events, transactions or results described in such statements. The Company's ability to consummate such transactions and achieve such events or results is subject to certain risks and uncertainties. Such risks and uncertainties include, but are not limited to, the existence of demand for and acceptance of the Company's products and services, regulatory approvals including those of foreign governments and regulatory changes, risks relating to international investments and business operations, dependence upon suppliers and strategic partners, adverse economic conditions, the impact of competition, the ability to obtain financing, the cost of financing and other factors affecting the Company's business that are beyond the Company's control. The Company undertakes no obligation and does not intend to update, revise or otherwise publicly release the result of any revisions to these forward-looking statements that may be made to reflect future events or circumstances.