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news: 10/21/2008


MonArc Corporation (MONA) Update PP365 Sale of Assets to (RMDM) Cash Dividend





BEIJING, Oct. 21 /PRNewswire-FirstCall/ -- monacorporation.com PINKSHEETS: MONA.PK is providing the following update vis-a-vis sale of its operating subsidiary PP365.Com to RMD Entertainment Group Inc. (RMDM). MonArc Corp. recently announced that it is currently in discussions to sell both of its operating divisions PP365.Com (China game developer) and its rights to Innotrek (A China based broadband provider) on a cash and stock basis to RMD Entertainment Group Inc. (RMDM) http://www.rmdmgroup.com/. As previously announced, MonArc Corp. did close the transaction with RMD Entertainment Group on the Innotrek transaction. Over the past weekend MonArc management received an unsolicited all cash buyout proposal for the assets of PP365 from a completely separate and unrelated entity. The unsolicited, all cash buyout proposal comes literally in the 11th hour as both MonArc Corp. and RMD Entertainment were ironing out the final details of their transaction, and final preparations to close the deal were being done.

Mr. Yang, a spokesperson for MonArc, said, "We have a fiduciary duty to our shareholders to examine every proposal and to make a determination as to what is in the best interest of our shareholders. The agreement between MONA and RMDM contained an escape clause for the benefit of MonArc Corp. should another buyer come forth before the closing of the transaction with RMD Entertainment Group. That contract, and clause was drafted by Mr. Winters. It also contained a non conflict of interest clause as Mr. Garr Winters acts in the capacity of a secretary with MonArc Corp. and an interim CEO with RMD Entertainment. Mr. Winters added, "It was my sincere wish that PP365 take off sky high with RMDM as it really never received the respect in terms of price per share with MONA that it deserved. This all cash proposal caught all of us off guard, but needless to say the MonArc management is pleased to have had the opportunity to entertain this new proposal from a separate buyer. MonArc management is continuing its due diligence process for the Peru South America mining company merger, regardless."

Mr. Wynn Wang, CEO of RMD Entertainment Group, said, "Based on what we have been presented with, we cannot match the all cash offer to MonArc for PP365. If the all cash buyer does come through we wish them well. If that deal does not happen we would still be interested for PP365 on the same terms as previously presented. At this point with Innotrek and the Australian game maker on our plate we have more than enough to keep us busy. I just wish to use this opportunity to extend our gratitude to all sides for an absolute positive and professional conduct from all concerned."

Mr. Yang, a spokesperson for MonArc, said, "Obviously if the cash deal for PP365 does come to a fruition, the dividend due to MONA shareholders from RMDM will only be for the purchase of Innotrek and will be prorated accordingly. Additionally should the all cash deal for PP365 materialize the MonArc management is currently entertaining the idea of paying part or entire cash amount to its shareholder base, or shareholders on record since about spring of 2008. At this point this topic is all very preliminary, and in its infancy. Should the all cash deal come to fruition, this will be the 6th dividend in cash and stock MONA will have paid out to its shareholders by December 31, 2008.

It goes without saying that for a Pink Sheet company this is unprecedented and being an unsolicited stock for one is simply beyond the grasp of many in the industry. MonArc Corp. is truly a unique and one of a kind company."

Safe Harbor statement under the Private Securities Litigation Reform Act of 1995: Certain forward information contained in this release contains forward-looking statements that involve risk and uncertainties, including but not limited to, those relating to development and expansion activities, domestic and global conditions, and market competition.

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DATASOURCE: MonArc Corporation (MONA)


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