MANHASSET, N.Y., March 14, 2001 (PRIMEZONE) -- Neurotech Development Corporation, (OTCBB:NURO) announced today that it has completed the formation of its joint venture with China Chen South American Construction Contracting Co., Beijing, China, one of China's largest multinational conglomerates ("CCS"). The joint venture, called International Humanitarian Development Ltd. (the "Venture"), was formed in Hong Kong in accordance with their agreement dated January 18, 2001 (as reported by NURO on January 22, 2001). The Venture was formed with registered capital of HKD$1,150,000, and shares were issued equally to Neurotech and CCS. The Venture is planning its headquarters at the Bank of China Building, Hong Kong, with occupancy expected in April 2001. The senior officers of the Venture are Lawrence Artz, Chairman; Zhao Lian-yu, Managing Director; Dr. Donald Rizzuto, Medical Director; and Jing Qi Zhu, Director of Public Information.
The Venture has entered into an agreement with Beijing Longenge Culture Promotion Co. Ltd. which operates Bejing Shenji Dancing School, one of the foremost independent private schools of the arts in China, to construct a new school for approximately USD$25 million. The new school would include a theatre of almost 1,000 seats, as well as TV and film production facilities. The project is subject to payment of a 20% deposit (USD$5 million); preparation of final budgets and plans; execution of final documents; and financing.
The agreement relating to the Beijing Shenji Dancing School is in addition to the first letter of intent entered into by the Venture for construction of a project in China with the Shanghai Civil Affairs Bureau which was reported by NURO on February 8, 2001. That letter of intent calls for the construction of an approximately USD$50 million geriatric facility and hospital, which includes demolition of existing facilities and relocation of residents. The project is subject to payment of a 20% deposit; preparation of final budgets, plans and documents; and obtaining financing, including obtaining financing to relocate the existing enterprises and to demolish the existing facilities.
Additionally, the Venture has entered into an arrangement with China Zhong, a China-based investment guarantee corporation, under which China Zhong will agree to provide monies for school and hospital construction projects of the Venture up to USD$50 million. An ongoing review is being made of the existing projects of the Venture. Upon completion of this review and receipt of updated costing for the projects, decisions will be made by China Zhong as to which projects of the Venture may be financed under the arrangement. Such financing will be subject to further documentation, and will bear interest at the prime rate in Hong Kong. The Venture believes that under the terms of the understanding, amounts required by the Venture's contracts to be deposited with the Venture before a project may commence will be loaned initially to the Venture for an unspecified term until such time as the owner of the project is able to provide other financing or to assume the Venture's obligation to repay China Zhong. Management of the Venture believes, however, that this arrangement may provide the seed money necessary to commence some of the projects located in China that are currently under contract with the Venture.
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, transactions and results may materially differ from anticipated events, transactions or results described in such statements. The Venture'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 Venture'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 ability to reach final agreements, the cost of financing and other factors affecting the Venture's business that are beyond the Company's and the Venture's control. In the case of the projects and financing specifically described in this press release, there can be no assurance that any project or any portion of a project will be financed or completed or, if it is, that the Venture will be released from its obligations under the guarantee arrangement. Neither the Company nor the Venture undertakes any 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 needed to reflect future events or circumstances.