BOCA RATON, Fla., Feb. 14, 2006 (PRIMEZONE) -- Genesis Technology Group, Inc. (OTCBB:GTEC), a business development and marketing firm that specializes in procuring opportunities in China, announced that it has completed the sale of the Company's 80% ownership in Shanghai Chorry Technology Development Company, Limited (formerly known as "Zhaoli") to Dragon Capital Group Corp. (DRGV). The unanimous consent of the Genesis Board of Directors and a majority vote of outstanding shares held by Genesis Shareholders certified the sale.
Dragon Capital issued $500,000 worth of common stock to Genesis as consideration. The acquisition was based on the closing price of DRGV on December 15, 2005 at $0.027, resulting in Genesis obtaining in excess of 18.5 million shares. The average closing price for DRGV for this month through February 10th reached $0.625, giving the stock holdings a current value exceeding $1.15 million.
The details of the sale of the Chorry subsidiary appeared in the Company's 10SBK filed last month, which also reported that any debt related to registered capital, as required by Chinese law, has been contractually assumed by DRVG.
Genesis CEO Gary L. Wolfson said: "Management spent 2005 reorganizing both our business model and operations in China. Our expectations are to reach EBITDA profitability this quarter, and we also expect to reach positive cash flow shortly thereafter. The sale of Chorry was a key goal recognized by management for several compelling reasons. We are confident that completing this sale will prove to be a wise and beneficial decision."
CFO Adam Wasserman, upon returning from Brazil, commented: "We have spent the past several months reviewing in great detail every aspect of our business, and we are extremely excited with the opportunities. We are firm in our commitment to accelerate revenue, while closely managing our cost structure towards reaching profitability. We are confident in our ability to reach these near-term financial goals."
About Genesis Technology Group, Inc.
Genesis Technology Group, Inc. (also referred to as "Genesis China") is a business development firm that fosters bilateral commerce between Western and Chinese companies. Genesis has created successful profit centers in product development, manufacturing, distribution, joint ventures and operational services. GTEC supports the complete circle for Chinese companies entering the public market through its various subsidiaries. Genesis has established effective working relationships with various governmental agencies, public institutions, and private industries in China. In addition, the company acquires and invests in innovative technology companies in China or forms joint ventures with both Western and Chinese companies, focusing on emerging technology and natural resource industries. For reference, visit www.genesis-china.net
About Dragon Capital Group Corporation
Dragon Capital Group ("Dragon") is doing business in China through its subsidiaries. Dragon was established to serves as a conduit between Chinese high-growth companies and Western investors. As China emerges as a growing force on the global stage, Dragon's professionals will provide invaluable services for Western investors seeking to gain access to the Chinese high-tech economy. In addition, Dragon functions as an incubator of high-tech companies in China, offering support in the critical functions of general business consulting, formation of joint ventures, access of capital, merger & acquisition, business valuation, and revenue growth strategies. Dragon will develop a portfolio of high-tech companies operating in China. Our focus will be on innovative technological applications, which are poised to alter the competitive landscape of the industry. For more information about Dragon Capital, please visit http://www.dragonventure.net
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