New Energy Systems Group Completes Previously Announced Acquisition of Shenzhen NewPower Technology Co., Ltd.
January 13 2010 - 8:30AM
PR Newswire (US)
NEW YORK and SHENZHEN, China, Jan. 13 /PRNewswire-Asia-FirstCall/
-- New Energy Systems Group (OTC:NEWN) (BULLETIN BOARD: NEWN) , a
manufacturer and distributor of battery components in China, today
announced that it has completed the previously announced
acquisition of Shenzhen NewPower Technology Co., Ltd. ("NewPower"),
a China-based manufacturer of lithium ion batteries. New Energy
Systems Group paid US$3.0 million in cash and 1.8 million shares of
New Energy's common stock. As of the original agreement, entered on
December 15, 2009, the Company's shares were trading at $6.42,
resulting in a total purchase price at the time of US$14.7 million.
Mr. Fushun Li, Chief Executive Officer, commented, "We are pleased
to have successfully completed the acquisition of NewPower, a
rapidly growing manufacturer of lithium ion batteries for cell
phones and other portable devices. The company has a very strong
reputation in the industry for its advanced technology and high
quality manufacturing capabilities. This acquisition is
strategically important in that it completes the vertical
integration of our business and allows us to manufacture batteries
from start-to-finish, an important competitive advantage. We also
welcome the management and employees of NewPower to our
organization, who bring a wealth of technical expertise and
industry experience." Mr. Li continued, "We expect NewPower alone
will contribute more than $27 million of revenue and over $2.5
million of net income for 2010. In addition, the NewPower
acquisition will enable us to capture additional margins and
increase the profitability of our own finished battery distribution
business. Moreover, NewPower has sufficient capacity to more than
double its current production with minimal capital expenditure
requirements. As a result, we expect to generate strong incremental
margins as we ramp up production of our newly combined
organizations." About Shenzhen NewPower Technology Co., Ltd.
Shenzhen NewPower Technology Co., Ltd. was founded in 2004 and is a
rapidly growing manufacturer of lithium ion batteries for cell
phones and other portable devices. The company's products range
from low end cell phone batteries, to state-of-the art, high
capacity batteries. The company has a longstanding reputation for
its advanced technology and high quality manufacturing
capabilities. For more details, please visit:
http://shenzhennewpower.com/index.asp About New Energy Systems
Group New Energy Systems Group is a leading manufacturer and
distributor of lithium ion batteries. The company assembles and
distributes finished batteries through its sales network and
channel partners. The company also sells high-quality lithium-ion
battery shell and cap products to major lithium-ion battery cell
manufacturers in China. The company's products are used to power
mobile phones, MP3 players, laptops, digital cameras, PDAs, camera
recorders and other consumer electronic digital devices. Additional
information about the company is available at
http://www.newenergysystemsgroup.com/ . Forward Looking Statements
Except for the historical information, the matters discussed in
this news release may contain forward-looking statements,
including, but not limited to, factors relating to future results.
These forward-looking statements may involve a number of risks and
uncertainties. Actual results may differ materially based on a
number of factors, including, but not limited to, uncertainties in
product demand, risks related to doing business in China, the
impact of competitive products and pricing, changing economic
conditions around the world, release and sales of new products and
other risk factors detailed in the Company's most recent annual
report and other filings with the Securities and Exchange
Commission. For more information, please contact: Crescendo
Communications, LLC David Waldman or Klea Theoharis Tel:
+1-212-671-1020 Email: DATASOURCE: New Energy Systems Group
CONTACT: Crescendo Communications, LLC, David Waldman or Klea
Theoharis, +1-212-671-1020, Web site:
http://www.newenergysystemsgroup.com/
http://shenzhennewpower.com/index.asp
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