NEW YORK and HARBIN, China, Nov. 18, 2009 (GLOBE NEWSWIRE) -- China Digital Animation Development, Inc. (OTCBB:CHDA) today announced that it has entered into a stock purchase agreement with Chongqing Dinv Ares Filming Production Co., Ltd. (Dinv Ares), an award-winning film production company based in Chongqing, China. Upon completion, the acquisition will be an all-stock transaction whereby China Digital Animation will issue one million shares of its common stock to Dinv Ares, in exchange for certain assets of the company. Dinv Ares' acquired business lines generated revenue of $3 million, gross profit of $1.5 million and net income of $930,414 for the twelve months ended June 30, 2009.
"Since its founding in 1997, Dinv Ares has built an excellent reputation for quality work in film production and 2-D animation, which perfectly complements our own core strengths in 3-D digital animation," commented Mr. Qiang Fu, Chairman and Chief Executive Officer of China Digital Animation.
The acquisition of Dinv Ares provides China Digital Animation with a talented and creative team of production professionals, as well as a broad range of assets including post-editing facilities, professional video cameras, lighting, audio and other auxiliary equipment. Dinv Ares also provides equipment rental, distribution and media agents for the entertainment industry.
Mr. Fu continued, "We welcome the senior management team and creative staff of Dinv Ares to China Digital, and we look forward to their contributions to the success of our combined organization." In addition to numerous films and television programs already completed by Dinv Ares, the company is currently working on a 20-episode teleplay, preparing three others and is working on a feature film. Top film stars appearing in these productions are also very active in promoting their projects on local and national television in China, and Dinv Ares has excellent distribution capabilities, which complement those of China Digital Animation.
About China Digital Animation Development, Inc.
China Digital Animation Development, Inc. is a premier China-based digital animation development company, operating in Harbin (one of the largest animation development centers in China) as well as Beijing in The People's Republic of China. The Company also has an administrative office in New York City. The Company is engaged in animation post-stage processing, animation outsourcing, and information transmission services. The Company also operates an animation development skills training center located in Harbin, China, which provides its students with different types of animation skill training programs such as motion graphics, product modeling, character animation, and more. The Company's technical team has extensive experience in animation production and outsourcing.
Safe Harbor Statement
In addition to historical information, this press release contains forward-looking statements, which are generally identifiable by use of the words "believes," "expects," "intends," "anticipates," "plans to," "estimates," "projects," or similar expressions. These forward-looking statements represent Management's belief as to the future of China Digital Animation Development, Inc. Whether those beliefs become reality will depend on many factors that are not under Management's control. Many risks and uncertainties exist that could cause actual results to differ materially from those reflected in these forward-looking statements. Factors that might cause such a difference include, but are not limited to, those discussed in Section 1A: "Risk Factors" In the Company's Annual Report on Form 10-K for the year ended June 30, 2009. Readers are cautioned not to place undue reliance on these forward-looking statements. We undertake no obligation to revise or publicly release the results of any revision to these forward-looking statements.