MINNEAPOLIS, Dec. 10, 2003 (PRIMEZONE) -- Subjex Corporation (OTCBB:SBJX) and ShangHai Geason Digital Technology Co., Ltd., a Chinese corporation, jointly announced today the signing of a joint venture agreement to form a new company called Subjex China to be headquartered in Shanghai, China.
Under the terms of the Agreement, existing assets, contracts, revenues and cash of ShangHai Geason Digital Technology will be put into the new company, along with up to 1 million shares of U.S. based Subjex Corporation (SBJX). The final value of cash and asset contribution will be more than $2,000,000 USD.
The equity split of the new company will be 50/50 between the owners of ShangHai Geason Digital Technology and Subjex Corporation. The new company is expected to be operational in first quarter 2004, after which ShangHai Geason Digital will cease to operate. Initially, Subjex China will have annual revenues exceeding $5,700,000 USD and will be profitable from inception. Management will be made up of both companies, and Subjex Corporation will hold two of the five board seats.
Additional terms state that Subjex China will combine the existing business models of the two companies and pay dividends to shareholders. Subjex Corporation has granted the new entity exclusive distribution rights for Subjex products and use of its trademarks within China. Subjex China will leverage its position with ShangHai Geason Digital Technology clients to sell SubjexCSR english version. Subjex China will contract Subjex Corporation to develop the Chinese version of its dialogue platform for an undisclosed sum. Subjex Corporation will maintain its trade secrets and code and will serve as the technology center for Subjex China, which will provide additional revenues for Subjex Corporation.
"We are excited to embark on this venture with Subjex Corporation. We have analyzed the SubjexCSR software and its potential with our clients and in the Chinese market with very favorable results. Now our clients recognize the huge value SubjexCSR product can bring to their operations," commented Michcal Zhou, ShangHai Geason Digital Technology, CEO. "We are expecting big market share in China and we feel that Subjex China will be the perfect vehicle to take public on the Shanghai Stock Exchange (SHSE)."
China based ShangHai Geason Digital Technology is one of the largest providers of text messaging software (Geason SMS Manager) and other software platforms, including GPRS Wireless. Clientele include SIEMENS (NYSE:SI), General Electric Company (NYSE:GE), China Merchants Bank (Shanghai:600036.SS), Shanghai AXA, TCL Electric enterprise, China Eastern Airlines (NYSE:CEA) (Shanghai:600115.SS) (HKSE:0670.HK) and others. With 7 China provincial agents and 300 distributors throughout the country, ShangHai Geason Digital Technology has a strong position in the Chinese markets.
Based in Minneapolis, Minnesota, U.S., Subjex Corporation has set the standard in artificial intelligence dialogue customer service platforms. The company's flagship product, SubjexCSR (Customer Service Representative), facilitates meaningful, text-based humanlike conversations with thousands of web site visitors, simultaneously, thereby reducing customer service costs and increasing sales -- with little or no human intervention. For more information and to try the technology visit the web site at www.subjex.com.
This news release contains "forward-looking statements" within the meaning of Section 27a of the Securities Acts of 1933 and Section 21E of the Securities Exchange Act of 1934. Although the Company believes that the expectations reflected in such forward-looking statements are reasonable, it can give no assurance that such expectations will prove correct.