Zoom Technologies Inc. (ZTNO)

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Zoom Technologies Receives a Proposal for a Line of Credit of $44 Million From Bank of China

Date : 09/15/2010 @ 12:14PM
Source : MarketWire
Stock : Zoom Technologies (ZOOM)

http://ih.advfn.com/p.php?pid=nmona&article=44383040&symbol=ZOOM

Zoom Technologies, Inc. (NASDAQ: ZOOM), a leading China based manufacturer of mobile phones and related products, today announced that its manufacturing subsidiary, TCB Digital, has been provided a proposal for a line of credit of up to Rmb 300 million (approximately US$44 million) from the Bank of China for the Company. The credit facility, if provided, can allow Zoom Technologies to accelerate manufacturing expansion to support the increase in its EMS (electronics manufacturing services) customer demand.

To make the credit facility available, Zoom Technologies needs to satisfy collateral requirements either based on the real property of the Company's new manufacturing plant that is currently under construction, or by a guarantee from Tianjin Leimone Industrial Co. Ltd. which is an entity controlled by Zoom's Chairman, Mr. Lei Gu. The credit from Bank of China, if approved, would allow Zoom Technologies to borrow up to $44 million on a one-year term, at an annual interest rate equal to the prevailing one-year benchmark lending rate as set by China's central bank which is currently 5.58%.

Mr. Lei Gu, Chairman and Chief Executive Officer of Zoom Technologies, stated, "This proposal to extend credit underscores the confidence that Bank of China has in the future of our business and Zoom's position in the robust China mobile phone market. The credit facility would provide the funds to expand our manufacturing capacity, attract greater customer orders, and increase our market share. The line of credit would strengthen our working capital which would place Zoom in an excellent position to negotiate additional contracts and strategic collaborations on optimal terms for Zoom Technologies and its stockholders. This would allow us to grow with the rapidly expanding China 3G market and produce mobile products for top tier Chinese mobile phone companies."

About Zoom Technologies

Zoom Technologies is a holding company with subsidiaries that engage in the manufacturing, research and development, and sale of electronic and telecommunication products for the latest generation mobile phones, wireless communication circuitry, and related software products. Zoom Technologies' subsidiary, Jiangsu Leimone, owns a majority stake of TCB Digital, which offers highly customized and high quality Electronic Manufacturing Service (EMS) for Original Equipment Manufacturer (OEM) customers as well as its Own Brand Manufacturing (OBM) under the brand name of Leimone. The company's products are both exported and sold domestically.

Forward-Looking Statements

Certain statements in this press release may constitute "forward-looking statements" that involve risks and uncertainties. These include statements about our expectations, plans, objectives, assumptions or future events which cannot be assured. You should not place undue reliance on these forward-looking statements. Information concerning factors that could cause our actual results to differ materially from these forward-looking statements can be found in our periodic reports filed with the Securities and Exchange Commission. We undertake no obligation to publicly release revisions to these forward-looking statements to reflect future events or circumstances or reflect the occurrence of unanticipated events.

Contact:

Cynthia Hiponia

The Blueshirt Group

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