HONG KONG--(Marketwire - October 9, 2007) - ITonis Inc. (
OTCBB:
ITNS) is extremely pleased to
announce that it has entered into a binding share exchange agreement (the
"Share Exchange Agreement") with iOcean Media Limited ("iOcean") and Aquos
Media Limited ("Aquos"), a wholly owned subsidiary of iOcean.
The Share Exchange Agreement provides that ITonis will acquire 100% of
Aquos Media Limited, a 100% owned subsidiary of iOcean Media Limited in
exchange for a 49% equity stake in ITonis Inc. Both companies have been
developing an Internet Protocol Television and Video ("IPTV") on Demand
solution for launch in 2008 in the People's Republic of China. Targeting
hundreds of millions of viewers this is a unique opportunity to validate
the technical solution and the commercial model developed by ITonis and
iOcean for the service in China. China represents the next frontier in
media and a unique opportunity to access an untapped audience of over 2
billion people that is developing technologically and becoming more
westernized.
ITonis, based in London, England, is a developer of cutting edge IPTV
solutions. ITonis has developed a true IPTV solution for video content
owners and video content distributors that would enable the viewer to see
his/her favorite national or local TV programs from anywhere in the world
at leisure, either through a set-top box connected to the TV or through a
computer. ITonis will bring its software and technical know-how into the
project.
Aquos has been in business in China for a number of years and provides the
partnership with the relationships, licenses and premium content revenue
streams with which the partnership can exploit the opportunity of being the
first Western digital TV provider in China with the ability to stream
premium Chinese and Western media content to the massive Chinese audience,
along with associated revenue streams such as online gaming such as
gambling and advertising opportunities for western companies.
With the pending explosion of the Chinese Internet Protocol TV (IPTV)
market represents the next major step in the evolution of the Internet
landscape in China, as new platforms have become available to transmit
media, entertainment, and information. ITonis Inc. is an IPTV company that
is uniquely positioned to capitalize on the exciting opportunity to meet
the growing demand of more sophisticated Chinese Internet users who have
access to these new technologies. ITonis Inc. will be at the forefront of
the tremendous value creation that is about to occur in the Chinese IPTV
market.
China has the world's largest television audience, the greatest number of
cable television households, and the country currently places second for
the most Internet users and broadband users (and is rapidly overtaking the
United States in both of these categories.) The Chinese government has
mandated that Digital TV will be made the nationwide standard for cable
television by 2015. This transition will mean more domestic television
channels and even higher revenues for broadcasters.
The Chinese Internet user base is large and growing rapidly -- yet it has
still only scratched the surface of its potential. There are 164 million
Internet users in China, a figure that has been growing 30% annually since
the year 2000. While the 164 million users make China the second largest
Internet market in the world behind the United States (211 million), it
represents only 10% of the population (contrasted with 70% penetration in
the United States). Given the recent growth rates and the country's
booming economic growth, China will capture the top spot in the world
rankings within the next two or three years, and it will still have room
for considerable growth.
Media revenues across all sectors in China increased over 25% from 2003 to
2004. Media spending in the People's Republic of China hit $23.3 billion at
the end of 2004 and grew by a further 21% to US$ 37 billion in 2005. China
now ranks 3rd in the world behind Japan and the USA in largest global media
spending. This growth provides more revenue opportunities for ITonis,
through not only content but advertising relationships that can be created
to monetize the large base of viewers aggregated through Flow TV.
ITonis Inc. has teamed up with one of the largest broadcasters in China,
Shandong Television, to launch Flow TV. Flow TV is an internet-based
television portal that will deliver over 150 foreign and domestic channels
nationwide.
The uniqueness of ITonis' opportunity (through the acquisition of Aquos
Media) is derived from the company principals' longstanding, trusted
business and advisory relationship with various Ministries within the
Chinese government.
-- The ability, as a foreign entity, to be part owner of a Internet
Television broadcasting company, which is an industry that is controlled
very tightly by the Chinese government;
-- A partnership with state-owned broadcaster, which has been issued a
nationwide IPTV license (there are also three regional licenses currently
issued, making this only the fourth IPTV license of any kind);
-- The ability to deliver foreign-created content for a fee to the
Chinese market through broadband Internet distribution.
The main source of revenue for ITonis in 2007 - 2010 will be from
subscription fees. As the primary content provider ITonis Inc. will take
up to 60% of all the subscription fees from each subscriber. ITonis Inc.
plans to begin broadcasting video over broadband and wireless in the last
quarter of 2007. These test broadcasts will generate no revenue for 2007.
The expected launch of the full service in 2008 will begin in Q1 and is
expected to generate revenues almost immediately. ITonis Inc. is targeting
20 million subscribers by Q4 2008, generating revenues of US$ 128,000,000
for the 2008 fiscal year.
This rare confluence of government partnerships, booming growth trends, and
major global events gives ITonis Inc some very strong advantages in
competing for the world's fastest growing media business in the world's
most populous country, the People's Republic of China. These resources
combined with local management knowledge and expertise will allow ITonis
and its partners to deliver the best media content over the world's largest
multimedia platform to generate significant returns for investors.
About ITonis
ITonis, based in Prague, Czech Republic, is a developer of cutting edge
IPTV solutions. ITonis has developed a true IPTV solution for video content
owners and video content distributors that would enable the viewer to see
his/her favorite national or local TV programs from anywhere in the world
at leisure, either through a set-top box connected to the TV or through a
computer. ITonis will bring its software and technical know-how into the
project.
FORWARD-LOOKING STATEMENTS: Statements about ITonis' and Aquos Media's
future expectations, including the completion of the acquisition of Aquos
Media by ITonis, future revenues and earnings, and all other statements in
this press release other than historical facts are "forward-looking
statements" within the meaning of section 27A of the Securities Act of
1933, Section 21E of the Securities Exchange Act of 1934, and as the term
is defined in the Private Litigation Reform Act of 1995. ITonis' and Aquos
Media's actual results could differ materially from expected results.
Neither ITonis or Aquos Media undertakes any obligation to update
forward-looking statements to reflect subsequently occurring events or
circumstances. Should events occur which materially affect any comments
made within this objective; ITonis and Aquos Media will appropriately
inform the public.
Contact Information: For more information on ITonis, please visit http://www.itonis.tv or
contact:
Tom Roberts
CEO
ITonis Inc.
Klimentska 10, 110 00 Praha 1, Czech Republic
Tel +1-866-826-1347 (North American Investor Relations)