HONG KONG, June 21, 2005 (PRIMEZONE) -- FP Group, Ltd. (Pink Sheets:FPGR) ("FPG") announced today that it has entered into discussions with Jin Ye Wood Company, a People's Republic of China based manufacturer of wooded boxes.
The acquisition of Jin Ye Wood Company is the second step in the Company's plan to take advantage of the explosive growth in China by creating a fully integrated and comprehensive logistics company to service that growth. The Company has identified two other acquisition candidates to achieve its 3 step goal which is expected to create a combined revenue base of approximately US$30,000,000. The company anticipates finalizing this within the next 12-18 months, assuming certain financing commitments are completed.
By acquiring Jin Ye, not only does the Company save a substantial amount of money on operating expense, but is able to service the extensive client base of Jin Ye. There are significant synergies between the two companies' client base and product lines. Both Companies can take advantage of cross selling, expanding an already going base. Jin Ye's manufacturing facility is located in Shenzhen, PRC nearby the Company's existing facility.
FPG President Mr. Leo Wong stated that, "Our goal is to expand our business to revenue levels exceeding US$30 million in which we expect to experience substantial economies due to scale. We can achieve this quicker by growth through acquisition. In doing so, we will have acquired or developed every major operation necessary to provide, design, custom packaging and delivery of our clients products throughout the world. We are on the right path with our recent letter of intent with Million Base, the current acquisition."
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.