DIAMOND BAR, Calif., March 21, 2006 (PRIMEZONE) -- Sun New Media, Inc. (OTCBB:SNMD) ("SNMI") and Capital Alliance Group, Inc. ("CAG"), along with the Fidelity Transfer Company as their Trustee, agreed on March 15, 2006 to modify the terms of their share pooling agreement. The original share pooling agreement was signed on September 18, 2005 and later modified on December 1, 2005.
Under the terms of the revised agreement, Sun Media Investment Holdings Limited ("Sun Holdings") is entitled to release up to 8,000,000 of its 28,000,000 common shares in SNMI, and CAG is entitled to release up to 1,142,571 of its 3,999,000 common shares in SNMI.
All of the shares held by Sun Holdings and being released under the revised pooling agreement will remain restricted in accordance with Rule 144, promulgated by the SEC under the Securities Act of 1933, as amended. Such shares may not be sold in to the U.S. public market pursuant to Rule 144 prior to March 15, 2006 and then thereafter will remain subject to the rules and limitations of Rule 144.
About Sun New Media
Sun New Media Inc. (SNMI) is one of China's first integrated, interactive marketing companies. SNMI plans to create a core group of businesses that includes advanced interactive content development and distribution units, sales and marketing services, and channel management software solutions. SNMI is well positioned to capture a significant share of China's multi-billion dollar interactive marketing services market.
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This press release includes statements that may constitute "forward-looking" statements, usually containing the word "believe," "estimate," "project," "expect," "plan," "anticipate" or similar expressions. Forward-looking statements inherently involve risks and uncertainties that could cause actual results to differ materially from the forward-looking statements. Factors that would cause or contribute to such differences include, but are not limited to, continued acceptance of SNMI's product and services in the marketplace, competitive factors, changes in regulatory environments, and other risks detailed in SNMI's periodic report filings with the Securities and Exchange Commission. In addition, there is no certainty that the transactions described above will be completed or, if completed, that the terms for such transactions may not change before completion. Nor is there any certainty that SNMI will be able to benefit from the described transactions in the manner currently expected. By making these forward-looking statements, SNMI disclaims any obligation to update these statements for revisions or changes after the date of this release.