UNITED TRAFFIC SYSTEM INC.
(Exact name of registrant as specified in its charter)
British Columbia, Canada
(Jurisdiction of incorporation or organization)
808 - 27 Alexander Street, Vancouver, BC, V6A 1B2, Canada
VANCOUVER, British Columbia, Oct 19, 2004 (BUSINESS WIRE) -- The Board of Directors of Penn Biotech Inc (PBOTF) is pleased to advise that its renewed license agreement with Traffic ITS Co Ltd. has been signed and approved by both parties. Traffic reported total revenues in excess of US$30 million in calendar year 2003. PBI also announces that it has formed a new wholly-owned subsidiary, Western ITS Ltd., with the mandate for the Intelligent Transportation System ("ITS") business in China and North America.
Western ITS is vigorously pursuing business opportunities in the People's Republic of China. In order to be eligible to submit bids on ITS projects, companies must demonstrate bonding capability. To this end, the Company has commenced negotiations with a financial partner who will provide such bonding and project financing capability for all Chinese ITS projects over US$10 million. As has been stated previously, according to ITS of America, the US ITS trade Association, expenditure in the traffic infrastructure market in China is forecast to be in excess of US$30 billion per year for the next several years. Beijing alone is expected to spend approximately US$10.8 billion in the lead up to the 2008 Olympic games.
PBI also wishes to clarify some information in its news release dated October 18 2004. As stated in that release, the company has signed a joint venture agreement with the Chinese Ministry of Agriculture to grow seed potatoes for the growing potato processing industry in China. The initial planting will be for a total of 2,000 acres, growing to 48,000 acres by 2010. Crop yields vary, but at the low end of the expected range of ten tons per acre, this would provide 20,000 tons initially, growing to 480,000 tons by 2010. PBI and the ministry will share costs and profits from the sale of the potatoes on a 50/50 basis, with a gross sale price forecast at US$130 per ton. Thus, total revenues associated with the project are expected to range from an initial US$2.6 million to US$62.4 million.
PBI's seed potato growing technology provides a significant advantage to other technologies used in the propagation of seed potatoes. It is the only technology which mass produces consistently high quality, pathogen free minitubers which meet all the quality requirements for potato processors.