SNMD (.73) nnounces Exclusive Agreement with China's Sole Bank Payment Service Provider
PR Newswire "US Press Releases "
NEW YORK, Jan. 3 /PRNewswire-FirstCall/ -- Sun New Media Inc. (OTC Bulletin Board: SNMD.OB), a Chinese Internet based marketing, information and transactional services company linking businesses with businesses, today announced that it has entered into an exclusive agreement with Shanghai Card Info Co. Ltd ("Shanghai Card Info"), a subsidiary of China Union Pay, China's sole financial and transactional service provider with management control over China's unified inter-bank information exchange network.
Through the agreement, Sun New Media acquires ownership of Shanghai Card Info's proprietary payment processing technology, including the intellectual property rights to its secured payment processing chip and related source codes. The technology has already undergone a rigorous testing process by the Central Bank of China and has been approved for use. Sun New Media also gains access to Shanghai Card Info's bank card user database and the exclusive operating rights to its telephone-based payment systems in the commercial sector.
Sun New Media plans to use the acquired technology to develop NextPay, a payment system that will enable consumers to purchase goods via landline telephones, mobile phones or the internet, using their personal bank cards. NextPay will eventually serve as the payment mechanism for all of Sun New Media's transactional services, as well as other direct sales and home- shopping providers. It will derive revenue from three sources: (1) Revenue sharing of monthly fees from telephone companies; (2) Monthly service fees paid by participating banks; and (3) Commissions on transactions processed by NextPay.
NextPay will also supplement Sun New Media's NextShow Guide, a digital e- product catalogue that displays and recommends products to consumers. Set to launch in March, 2007, the NextShow Guide stands to be the world's first interactive consumer guide with an integrated payment system. The Guide will build a community of urban consumers and small businesses nationwide and will derive revenue from advertising and product sales. It could reach tens of millions of Chinese consumers monthly by drawing on the collective distribution networks of Shanghai Card Info and Sun Media Investment Group, Sun New Media's largest shareholder and one of China's largest private media companies.
Dr. Bruno Wu, Chairman and CEO of Sun New Media commented, "The past six months of operation have reinforced three key points. First, we have a core competence of using targeted media content to build loyal consumer communities; second, we are most profitable with our online distribution business when servicing small business and urban consumer market segments where fragmentation creates opportunity; and third, we need to develop our own integrated information and payment solutions to facilitate commerce within our consumer communities. NextPay, coupled with the NextShow Guide represents the first of these solutions. We are excited for its launch in March."
About China Union Pay and Shanghai Card Info Co., Ltd
China Union Pay, along with its subsidiary Shanghai Card Info Co., Ltd, is China's sole financial and transaction service provider with nationwide operations that span management of China's unified inter-bank information exchange network; provision of electronic payment systems and related specialized services; research and development in China's banking card sector; marketing and management of the China Union Pay brand; oversight of the technological standards of China's inter-banking transactional services; provision of training courses within the banking industry; and provision of other related services approved by the People's Bank of China. The company was collectively established by 80+ financial institutions under the auspices of China's Central Bank in March, 2002. It has a registered capital of 1.65 billion RMB and is headquartered in Shanghai, PRC.
About Sun New Media Inc.
Sun New Media is a leading Chinese multi-media powered marketing and channel management company. Sun New Media builds e-enabled distribution systems, transaction platforms and business communities in fast growing Chinese vertical markets, connecting buyers and sellers with a suite of turnkey digital media, e-commerce, and information management solutions. Companies leverage Sun New Media's web-based business media communities to access vital industrial intelligence and forge trading relationships with suppliers and buyers that promote cost efficiencies and increased distribution reach. Learn more at http://www.sunnewmedia.net.
This press release includes statements that may constitute "forward- looking" statements, usually containing the word "believe," "estimate," "project," "expect," "plan," "anticipate" or similar expressions. Forward- looking statements inherently involve risks and uncertainties that could cause actual results to differ materially from the forward-looking statements. Factors that would cause or contribute to such differences include, but are not limited to, continued acceptance of Sun New Media's product and services in the marketplace, competitive factors and changes in regulatory environments. These and other risks relating to Sun New Media's business are set forth in Sun New Media's Annual Report on Form 10-KSB filed with the Securities and Exchange Commission on June 30, 2006, and other reports filed from time to time with the Securities and Exchange Commission. By making these forward-looking statements, Sun New Media disclaims any obligation to update these statements for revisions or changes after the date of this release.
Contact
Thomas Schuler, Chief Financial Officer tom.schuler@sunnewmedia.net 212-626-6744
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