DIAMOND BAR, Calif., Jan. 27, 2006 (PRIMEZONE) -- Sun New Media, Inc. (OTCBB:SNMD) ("SNMI"), today announced the completion of its acquisition of China Focus Channel Development (HK), Ltd. ("Focus"). The acquisition was finalized on January 27, 2006 in accordance with the terms originally disclosed in a news release issued on November 22, 2005.
Under the terms of the Purchase Agreement, the business and assets of Hubei Zhengyuan Trade Development Ltd, ("Zhengyuan") a PRC company, are included in the assets to be acquired by the Company in the transaction. The parties have entered into a supplemental agreement providing a 90-day period from closing to satisfy this condition.
Based in Wuhan, China, Zhengyuan is one of China's leading providers of internet-based channel management software solutions. With a cutting-edge proprietary ASP platform and a growing list of customers that include some of Asia's largest consumer products companies, the company is well positioned for growth in China's outsourced channel management solutions market.
"This acquisition represents a significant milestone for SNMI. The completion of this acquisition gives SNMI a dedicated logistical and distribution arm as it expands its interactive marketing and e-commerce services," commented Mr. John Li, co-CEO of SNMI. "These assets will play a critical role in enhancing the overall financial and operational strength of the company."
About Sun New Media
Sun New Media Inc. (SNMI) is one of China's first integrated, interactive business-to-business marketing services company for consumer products companies and their channel and distribution partners. 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 share of China's multi-billion dollar business-to-business (b2b) multimedia services market.
For more information on Sun New Media Inc., visit the Company's website at: http://www.sunnewmedia.net
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 the Company's product and services in the marketplace, competitive factors, changes in regulatory environments, and other risks detailed in the Company'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 the Company will be able to benefit from the described transactions in the manner currently expected. By making these forward-looking statements, the Company disclaims any obligation to update these statements for revisions or changes after the date of this release.
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