Venture Business Editors/High Tech Writers BEIJING, China--(BUSINESS WIRE)--June 14, 2000--Intermost Corporation (OTCBB: IMOT). In the middle of May, 2000 an e-commerce based alliance was formed between Guangdong Midea Group, Sun Hung Kai Properties Ltd, Shenzhen HuaQiang Group, Intermost Corporation Ltd. and two of other Chinese large appliance manufacturers. The joint venture is Shenzhen SinuE.com E-commerce Ltd, a company that will soon have an annual turnover above 100,000,000,000 RMB, and will engage in the establishment of Chinese first household appliance manufacturer's B2B procurement platform. According to SinuE.com's CEO, Mr. Jun Liang, "As a joint exchange platform, SinuE.com will have more competitive advantages than separately launched platform by individual manufacturer." Mr. Liang cited the alliance of the American "Big Three" automobile magnates to support the idea that an individual manufacture cannot stand alone to monopolize the Internet-based procurement market by itself. He believes that due to large industry scale, the presence of only a few, highly concentrated brand names, Chinese household appliance manufacturers are ready to conduct its e-commercialization, much more so than other Chinese industries. Additionally, the home appliance industry is achieving maturity in market operation, and is playing a more and more important role in international markets. Being supported by such a powerful industrial alliance, SinuE.com will be well positioned in terms of mutual compatibility among the players. Mr. Liang also points out that the value of e-commerce is evident. This initiative benefits manufactures, suppliers, and the industry as a whole. In the case of manufactures, by conducting on-line purchasing through the exchange platform provided by SinuE.com, the increased efficiency of large scale purchasing, will result in a 5-10% procurement cost savings within two years. For suppliers, SinuE.com's exchange platform will provide an equal opportunity for competition and eliminate under-table deals. For the whole industry, the exchange platform will enhance its competitiveness in international markets. Mr. Liang believes the combination of SinuE.com's operating mechanism characterized by buyer dominance, and its strategy of capital linkage are key to the success of the alliance. Under the operating mechanism, allied manufacturers will achieve the full benefits of scale with large on-line purchasing. SinuE.com thus makes itself an attractive business partner to suppliers and manufacturers. And to establish Capital linkage, SinuE.com will act as an independent third party whose equity and partnership will be equally and widely open to Chinese household appliance manufactures. Through this capital linkage, all the allied manufacturers will create a sense of belonging, and jointly build up a truly beneficial exchange community. Source: Nanfang Daily Note: translated from Chinese text from an article originally published May 24, 2000 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 home 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.
Chinese Household Appliance Magnates Create Internet Joint