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
"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."
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:
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