TAIPEI, Taiwan, May 14, 2003 (PRIMEZONE) -- City Network Inc. (OTCBB:CYNW) is celebrating its second consecutive year of providing Home PNA and VDSL Internet equipment solutions to one of China's largest communication companies Shanghai Telecom (www.sta.net.cn). Shanghai Magicnet Inc. (www.chongwang.com), an agent and supplier of broadband Internet equipment to Shanghai Telecom, is one of City Network's key investments in developing China's burgeoning internet market. Shanghai Magicnet has been responsible for winning important license and supplier agreements with Shanghai Telecom, in order to increase the ubiquity of high-speed, broadband Internet use among Shanghai's several million Internet users. Magicnet is currently working with Shanghai Telecom in the planning and development of projects for Shanghai's massive multi-dwelling unit market.
Under the guidance of Magicnet's chairman and founder, Mr. Chue Kuang-Lun, shipping large quantities of City Network's Home PNA and VDSL products to Shanghai Telecom has been a constant and consistent level. City Network has been fortunate to maintain such a significant business relationship with Shanghai Telecom. Through Magicnet's exclusive licensing agreement with Shanghai Telecom, it has sole authority to develop the Home PNA and VDSL markets in China's most populous city.
In February 2003, City Network obtained fifty-one percent ownership of shares in Shanghai Magicnet and hence control of its business development strategy in China. A spokesperson for City Network pointed out that by the end of the 2003 shipments of VDSL equipment to Shanghai Telecom and subsequently profit will likely increase by 100 percent. In addition, City Network also estimates that total revenues there will likely reach US$3 million in 2003.
About City Network
City Network, Inc. designs, manufactures and markets a comprehensive line of broadband and wireless Internet access solutions. The Company is positioning to capitalize on what it believes to be vast underdeveloped and overlooked new and emerging growth Internet markets. The company's product line ranges from the City Network HPNA device for the blooming worldwide residential building and hospitality market to the simple DSL bridge/modem for the home and small business user. Currently, City Network Home PNA and xDSL broadband access equipment is widely deployed by major telecommunication carriers, ISPs, and System Integrators worldwide.