China Digital Announces Termination of Agreement to Acquire Zhuo Tong Power Supply
June 26 2006 - 7:00PM
PR Newswire (US)
Company Provides Revised Revenue and Earnings Guidance LOS ANGELES,
and SHENZHEN, China, June 26 /PRNewswire-FirstCall/ -- China
Digital Communication Group (OTC:CHID) (BULLETIN BOARD: CHID) , one
of the fastest growing battery components manufacturers in China,
announced today that the company's board of directors has voted to
terminate its previously announced agreement to acquire Zhuo Tong
Power Supply Company. China Digital CEO Ran Liang, said, "We were
unable to conclude a final agreement that was favorable for our
shareholders. Therefore, our board of directors has voted to not
proceed with the acquisition. However, we remain on track to
conclude our acquisition of Galaxy View International, Ltd., which
operates through its wholly owned subsidiary Sono Digital, a
leading supplier of third-generation (3G) communications technology
and equipment in China. This continues to be an area of high
interest to our company, and we will continue to seek out
appropriate opportunities in this market segment." As a result of
the termination of the agreement to acquire Zhuo Tong, the company
revised its previously announced guidance. Assuming the acquisition
of Galaxy View is successfully concluded in 2006, the company said
it is targeting 2007 revenue of $30.7 million and net income of
$10.1 million with fully diluted EPS of $0.16 per share. Revenue
and earnings in 2006 will be determined by the timing of the Galaxy
View acquisition. In 2005, Galaxy View had unaudited revenues of $6
million and unaudited net income of $2 million. The company
emphasizes that the foregoing statements regarding targets for 2007
are forward-looking and actual results may differ materially. These
are the company's targets, not predictions of actual performance.
About China Digital Communication Group China Digital Communication
Group, through its wholly owned subsidiary, Shenzhen E'Jenie
Science and Technology Co., Ltd. (E'Jenie), is one of China's
leading manufacturers and developers of advanced telecommunications
equipment. E'Jenie sells advanced high-quality lithium-ion battery
shell and cap products to all major lithium-ion battery cell
manufacturers in China. E'Jenie's products are used to power mobile
phones, MP3 players, laptops, digital cameras, PDAs, camera
recorders and other consumer electronic digital devices. China
Digital Communication Group is continuing its expansion across East
Asia, while seeking distribution partners and acquisitions in new
global markets, including the United States. For more information,
visit http://www.chinadigitalgroup.com/ or contact Roy Teng of
China Digital, (310) 461-1322, e-mail: . An investment profile on
China Digital Communication Group may be found at
http://www.hawkassociates.com/chinadigital/profile.php. For
investor relations information regarding China Digital
Communication Group, contact Frank Hawkins or Ken AuYeung, Hawk
Associates, at (305) 451- 1888, e-mail: . An online investor kit
including press releases, current price quotes, stock charts and
other valuable information for investors may be found at
http://www.hawkassociates.com/ and
http://www.americanmicrocaps.com/. Forward-looking statement:
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 sales.
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. DATASOURCE: China Digital Communication Group CONTACT:
Frank Hawkins or Ken AuYeung, both of Hawk Associates,
+1-305-451-1888, Web site: http://www.chinadigitalgroup.com/
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