JINGWEI: Management Ends Acquisition Discussions With Outdoor Advertiser Henan Red Flag
SHENZHEN, China, Oct 10, 2008 /Xinhua-PRNewswire-FirstCall via COMTEX/ -- Jingwei International Limited (OTC Bulletin Board: JNGW; "Jingwei"), one of the leading integrated marketing companies in China, today announced that it has withdrawn its letter of intent of January 21st 2008 and decided not to proceed with the acquisition of Henan Red Flag, an outdoor advertising company which specializes in digital outdoor media. Jingwei has also been repaid the loan extended to Henan Red Flag as part of the letter of intent.
Jingwei has decided to strategically pursue less capital intensive opportunities which provide immediate cash flow by focusing on its core business. This decision was made in light of the economic paradigm shift in China as Jingwei believes the recent significant growth in GDP in China is primarily driven by consumer spending and advertisers will likely increase expenditures on focused solutions like Jingwei's integrated marketing services and a continued focus on telecommunication companies which have experienced consolidation and where Jingwei believes it is able to expand its services and obtain new subscribers.
Regis Kwong, Jingwei's CEO stated: "Management feels that by focusing on expanding its core business, Jingwei's capital will be deployed in the most effective way and it will also maximize shareholder's value. Jingwei intends to take advantage of the changes taking place in the Chinese market by accelerating the deployment of interactive mobile marketing service in more cities".
About Jingwei International Limited
Jingwei is a leading integrated marketing company in the fast growing Chinese market. The Company specializes in data mining and customer relationship marketing services in China. Powered by advanced data mining technology and a proprietary database of over 300 million Chinese consumers, Jingwei enables leading Chinese companies as well as international brands to reach their target audiences. The Company's services include market segmentation, customer trend, revenue analysis and direct marketing. Jingwei is an integrated marketing service Company, providing targeted campaigns via multi media channels including: interactive mobile, telemarketing, direct mail and new media. For more information, please visit the Company's web site: http://www.jingweicom.com