Business Editors & High-Tech Writers NEW YORK--(BUSINESS WIRE)--May 26, 2000--Intermost Corporation (OTCBB:IMOT), at a press conference held May 23rd in Beijing, announced that it has signed a contract with SUNeVision to create a holding company for the purpose of developing Internet-based procurement platforms for major Chinese industries, initially focusing on the giant Chinese textile industry. The new holding company is a major strategic alliance with one of the largest brand name Internet technology firms in Hong Kong. Backed by its own $200 million USD investment fund, SUNeVision (www.sunevision.com) is the B2B Internet technology arm of Sun Hung Kai Properties (www.shkp.com.hk), itself one of the largest blue chip firms in Hong Kong. Intermost will take a 35% ownership position in the joint venture, SUNeVision a 50% stake, and Ebiz.com a 15% stake. SUNeVision brings to the joint venture tremendous brand name power, managerial and technical expertise, and financial strength. Intermost brings its nationwide network of business relationships established during its two years as a premier provider in China of e-commerce solutions, systems integration, web design services and its B2B Internet portal, ChinaE.com. Intermost also brings the strength of its proprietary electronic payments platform, and its technical savvy. The Intermost/SUNeVision holding company will make its first procurement system investment in the Chinese home appliance industry. Earlier this week in Beijing, Intermost announced the creation of SinuE.com, a company that will build an Internet-based procurement platform for this industry. SinuE.com is an industrywide collaboration led by one of the largest Chinese home appliance manufacturers, Midea (www.midea.com.cn). Midea had revenues in 1999 of $1.55 billion USD. The Intermost/SUNeVision holding company will own 40% of SinuE.com. Internet-based procurement systems accommodate a manufacturer's different divisions, plants, locations, and projects. Procurement systems are internal, not available to the public. Suppliers can streamline selling and order entry processes while providing access to the tremendous buying power of the trading community the system naturally attracts. Operational efficiencies increase while costs decrease for all trading partners. All participants will realize significant cost savings, not merely through automation of routine ordering tasks, but also through the improved responsiveness of their supply chain. The opportunity to eliminate the vast inefficiencies found in the Chinese textile production and distribution procurement systems provides considerable profit potential. The actual procurement platform technology to be used by the SUNeVision/Intermost holding company is to come from a major well-known supplier. By conservative measures, Intermost/SUNeVision holding company revenues should reach tens of millions of US dollars within 12-18 months. Intermost will garner revenue from the sale of the procurement system development contracts in two separate ways. First, Intermost will generate revenue directly from a variety of sub-contractor work. Such work should generate revenue for Intermost within the coming six months. Secondly, Intermost will collect a proportional share of all revenue generated from the holding company. The opportunity for savings due to increased efficiency in the U.S. are typically much smaller than in China, meaning that operational cost savings could be much larger. "To understand the significance to Intermost of this alliance, one must consider whom SUNeVision / Sun Hung Kai Properties is. They are an aggressive, very large (multi-billion USD), wildly profitable Hong Kong company, well known throughout Asia. They know how to make money in the IT industry. They make no allusions about the requirement of having a solid business plan, financial backing, talented executive management, and proper Chinese connections in order to make this venture a moneymaker. In our opinion, there can be no strategic partnership more valuable than SUNeVision," commented Mark P. Williamson, Intermost's Vice President of Business Development. "SUNeVision management will not place their own name or money at risk without first establishing enormous confidence in Intermost, a confidence that has resulted from their own thorough due diligence." About Intermost Intermost is a China-based Internet technology company, focused on the development and delivery of scalable business-to-business e-commerce solutions. The Company promotes its name and products via its B2B portal, ChinaE.com. The Company also develops and markets an electronic payment system that allows for both telephone and online payment of consumer-oriented monthly bills, and markets broad-based procurement platforms for the Chinese electrical appliance industry. The Private Securities Litigation Reform Act of 1995 provides a "safe harbor" for forward-looking statements. Certain information included in this press release (as well as information included in oral statements and other written statements made or to be made by Intermost) contains statements that are forward-looking, such as statements relating to the consummation of transactions, anticipated future revenues of the companies and success of current product offerings. Such forward-looking information involves important risks and uncertainties that could significantly affect anticipated results in the future, and accordingly, such results may differ materially from those expressed in any forward-looking statements made by or on behalf of Intermost. Investor information can be found on the web at: http://www.Intermost.com.
Intermost Creates Joint Venture in Partnership with SUNeVision
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