LAS VEGAS, June 25, 2003 (PRIMEZONE) -- World Information Technology Inc. (OTCBB:WRLI) announced today it had acquired 100% of its acquisition of World Information Technology Inc. ("World Info China"), a Taiwan Chinese corporation located in Taipei, Taiwan. Pursuant to the acquisition, World Info China is now a wholly owned subsidiary of the company. On May 19, 2003 the company had acquired 80.75% -- under the terms of the acquisition the company could acquire additional shares until the company owns 100% of World Info China.
The company plans to apply for listing on the American Stock Exchange, provided the corporate governances are met, including an independent audit committee.
The company recently filed a current report on Form 8-K discussing the acquisition. The Form 8-K included audited financial statements for the year ending Dec. 31, 2002. Net sales for the period were $4,126,800. Net income before taxes was $2,642,051, and post acquisition, pro-forma, after tax earnings per share was $0.09 per share for the year.
More recently, the company filed on form 10Q its results of operations and financial position for the first quarter ended March 31, 2003. For the first quarter of 2003, consolidated revenues were $901,000 versus $342,000 for the same period last year. For the three months ended March 31, 2003, the consolidated results of the company reflected a net profit after income taxes of $483,000. This compares to a net profit of $47,000 for the same period last year.
World Info China has achieved profitability in a difficult time for Internet-related companies and the economy in general. The management of World Info China feels confident that it will capture a good portion of the market share in the near future with their current business model and aggressive planning for the expected improvement in the economy. With less Internet competition, the company hopes to achieve growth by setting up China operations to capture the vast market that is just beginning to flourish with the Internet and e-commerce. World Info China plans to expand its Internet business globally.
The company has entered into an investment banking agreement with the May Davis Group, a New York based private equity firm. May Davis has extensive experience in raising capital for companies in the technology sector. Mike Jacobs of May Davis, "I feel this company is positioned for tremendous growth and we look forward to helping them raise the necessary capital so they can achieve their future business objectives". May Davis has agreed to assist the company in an effort to raise up to $10,000,000.
World Info China has introduced Taiwan to its first all-around online video streaming solution for integrated TV postproduction live custom programming. The company has developed proprietary interactive real-time two-way data communications. The company has set up various online shopping channels and has become a dominant force in e-commerce in Taiwan. The company provides fully integrated services and creates a 24-hour online shopping environment. The Chinese company's Web site is: http://www.24hh.com.
An important aspect of World Info China business is to host Web sites. To attract new users to host their Web sites, World Info China established a service enabling Internet users to create their own Web sites. The company strives to improve the online experience of its users. For example, the users are provided with disk space for personal Web sites, Web-page publishing and communication tools to create their own fully customized, multimedia-rich content and e-mail, chat and bulletin board services. Users are offered an opportunity to participate in commercial activities, which include affiliate programs with major merchants.
World Info China's objective is to be the Republic of China's leading member-created online community for people on the Web. The company has designed a multilevel marketing program to recruit Web site hosting. World Info China's objective is to continue to increase the number of users and concentrate on member affinity programs to maintain its position as a leading provider of personal Web sites, continue to grow its membership base, and launch brand-name promotional campaigns to drive both growth in membership and traffic to its members' personal Web sites.
Included in this release are "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Although the company believes that the expectations reflected in such forward-looking statements are reasonable, it can give no assurance that such expectations reflected in such forward-looking statements will prove to have been correct. The company's actual results could differ materially from those anticipated in the forward-looking statements.