HONG KONG, May 16, 2005 (PRIMEZONE) -- FP Group, Ltd. (Pink Sheets:FPGR) announced today that it has signed a letter of intent to acquire a majority interest in Million Base ("MB"), a Hong Kong based global sourcing and marketing company. MB's distribution and logistic capabilities fits directly with FPG logistics and manufacturing business.
MB engages in product development, distribution, logistics, and product placement into mass retail. They hold a number of patents and sell products to importers and direct to retailers worldwide. As a result of its relationships with various governmental agencies, public and private institutions, and private companies in China, MB plays a key role in assisting U.S. and European companies that desire to move production or investments into China as well as helping Chinese manufacturers extends their export business into the U.S. and Europe. MB owns and manages a huge database of importers, traders, retailers, and manufacturers worldwide which enables the company to accomplish its marketing goals.
MB expects gross revenue in 2005 of approximately US$4,000,000 and net income of approximately US$800,000. This will significantly increase FPG consolidated revenue and net income.
FPG, Chairman and CEO Leo Wong, stated "Partnering with MB fits wonderfully into our expanding business plan, and will dramatically increase the client base of FP Group. We appreciate MB's confidence in our company and management team and feel confident that the sales exposure MB can provide in the United States and Europe will speed up our current growth and profitability. The investment FP Group is making in MB will permit the Company to become a major player in the marketing and logistic support segment serving manufacturers in Southern China. It will allow us to capitalize on the surging demand for high-quality, experienced China sourcing and logistic support in both the States and Europe."
Under the terms of the letter of intent, FPG will issue a convertible note to the current shareholders of MB in exchange for a majority interest in MB. The note will be convertible at a future date. Certain conditions must be met prior to the final closing of the transaction.
Mr. Wong added that, "FP Group will continue to look for merger and acquisition candidates that will both enhance our operations and create value for our shareholders."
About FP Group, Ltd.:
FPG is a Peoples Republic of China-based company providing a full range of logistical management in the printing and packaging industry. FPG provides a one-step service including consultation, design, sourcing, printing, assembly and delivery of packaging needs. FPG's products include items for which they hold design patents in the PRC. For more information, please visit our corporate website: www.fpgroup.com.hk
FPG is continually developing new design and packaging concepts. Growth of FPG will come from additional business with its current customer base and attracting new customers as a result of the services and products they offer. FPG intends to take advantage of its market position by seeking other firms for the possibility of merger or acquisition.
Statement under the Private Securities Litigation Reform Act:
With the exception of the historical information contained in this release, statements above describing objectives or goals or our future plans are forward-looking statements and are subject to certain risks and uncertainties, including among other factors the ability of FPG to increase revenues in the future, the ability to maintain a positive cash flow, and the ability to retain existing customers and obtain new customers, its ability to create and market new packaging concepts, the printing and packaging business in general, future governmental regulation as well as other factors which could cause actual results or revenues to differ materially from those contemplated by these statements.