LOS ANGELES, Dec. 16, 2002 (PRIMEZONE) -- Q-Net Technologies, Inc., (OTCBB:QNTI) (Frankfurt:QNO) ("Q-Net or the Company") is pleased to announce that its private placement for 5,000,000 restricted common shares at $0.10 cents per share has been fully subscribed. Total proceeds to the Company will be $500,000 USD and full funding will be completed by December 31, 2002. An additional 350,000 shares of restricted common stock will also be issued as a finder's fee in conjunction with the financing. This is equal to 7% of the total funding being received by Q-Net.
"We are pleased to receive the funding at a time when the company is ready to launch production, marketing and sales of its proprietary Thin Client Server computing solution technology, (TCS) and also develop a more aggressive marketing and sales program for our multi-functional Internet capable PDA / Electronic Reading Device, branded as the Q-Reader. The Company has received significant interest from a number of sectors, most notably from the educational, banking and publishing industries within China, as well as other Chinese enterprise groups," said Mr. Weiguo Lang, Chairman and CEO of Q-Net.
Q-Net reported in September, that it had experienced its first sales of the Q-Reader and had completed fabrication of the TCS terminal boards. This initial funding allows Q-Net to aggressively ramp up its programs for sales, marketing and production. More importantly, this funding will allow Q-Net to begin capitalizing on the large interest demonstrated in January of this year when the Company received pre-orders of more than 24,000 Q-Reader units when it was introduced at the International Publishing Show in Beijing.
Mr. Lang further commented that, "This is an exciting time for the company, as we are sitting on the verge of introducing our products to the broader Chinese market and all indications and interest received have been extremely encouraging. We look forward to going into the New Year knowing that we can begin to fulfill this interest. Also, one of our goals of the Company in 2003 will be to explore the possibilities of product introduction to the wider global market. We have received significant and positive interest from places such as Australia and other parts of Asia as well as North America."
Mr. C.S. Wang, President of United Sincere Limited, the funding group, stated that: "We are extremely happy to be involved with Q-Net at this early stage of its sales, marketing, production and post development for what we believe will be ideal product lines for the Chinese market place. I am extremely encouraged by the interest demonstrated while completing our due diligence of Q-Net's products and management, and believe that this initial investment will be the beginning of a more lasting and progressive relationship for both parties. Should the company meet its short-term milestones we look forward to providing further financial support to the Company as it progresses forward in executing its business."
United Sincere Limited, (USL) is a privately owned Investment Holding company based in Taipei, Taiwan. USL's financial activities primarily focus on commercial opportunities in China.
Q-Net Technologies, Inc. is a California-based publicly traded holding company with a focus on the introduction of consumer technology and value added Internet services into the Chinese market.
Public Company Disclosure
Certain matters discussed in this Press Release may constitute forward-looking statements within the Private Securities Litigation Reform Act of 1995 and, as such, may involve known and unknown risks and uncertainties and other factors that may cause the actual results to be materially different from the results implied herein. Readers are cautioned not to place undue reliance on the forward-looking statements made in this Press Release.