Sure Trace Strengthens Chinese Connection; Company Increases Its Equity Stake In China Joint Venture Vehicle; Sure Trace Asia Lt
June 17 2005 - 9:01AM
Business Wire
New CEO Added; China Demos Successfully Completed Sure Trace
Security Corporation (OTC:SSTY) (the "Company") announced that,
because of its completion of a highly successful demonstration of
the Company's capabilities in Beijing, China, it has been able to
reshape the framework of its China joint venture. The Company will
now hold a majority interest in the joint venture vehicle as
opposed to a minority position. The vehicle, Sure Trace Asia Ltd.
(STA), will become a subsidiary of SSTY. The Company will now own
85% of STA instead of 40%. STA and Beijing Suneray Communication
Co. Ltd. (Suneray) have an exclusive relationship to bring the
Company's technologies into China, Macau & Hong Kong. The joint
venture will share the costs and profits on a 50/50 basis. Mr.
William Chan, of Hong Kong, who was instrumental in bringing the
Suneray deal to STA, has also agreed to become the CEO of both SSTY
and STA. He will also sit on both Boards and will be located in the
Company's Hong Kong office. Mr. Cimino will be President and
Vice-Chairman of both companies and operate out of the Company's
home office in Philadelphia. Suneray, incorporated in Beijing,
China, is legally authorized by People's Republic of China as an
agent for the organization and implementation of the Unified Coding
Rules for Products and Services, a compulsory national standard of
the People's Republic of China. Mr. Cimino, the Company President
said, "This is a promising deal for the shareholders of Sure Trace.
We have formed a joint venture with a major gatekeeper for the
Chinese government, for the introduction of the types of
technologies that we provide. In effect, the door to China is wide
open to us... while others may still be just knocking at the door,
the Chinese government itself, through Suneray, has already invited
us in... That gives us a strong competitive advantage... especially
given that we have successfully completed the demonstration stage
of the process." "Now that we also own a majority interest in STA,
I believe we have further protected the interests of Sure Trace's
shareholders and increased the value of the Company's holdings,"
said Cimino. About Sure Trace Security Corporation Sure Trace is
one of the premier systems integrators for anti-counterfeiting and
security surveillance applications and a world-class provider of
integrated tracking devices. The company intends to deliver turnkey
solutions, both onshore and offshore, for governments, armed forces
and industry, through its own proprietary technology and through
aggregating the technology, products and services of third parties
via licensing agreements and or joint ventures. For more
information go to: www.suretrace.com. Safe Harbor: This press
release contains forward-looking information within the meaning of
section 27A of the Securities Act of 1933 and section 21E of the
Securities Exchange Act of 1934 and is subject to the Safe Harbor
created by those sections. This material contains statements about
expected future events and/or financial results that are
forward-looking in nature and subject to risks and uncertainties.
Such forward-looking statements, by definition, involve risks,
uncertainties and other factors, which may cause the actual
results, performance or achievements of Sure Trace to be materially
different from the statements made herein.
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