MINNEAPOLIS, Nov. 5, 2003 (PRIMEZONE) -- Subjex Corporation (OTCBB:SBJX) and ShangHai Geason Digital Technology Co., Ltd, a Chinese corporation, jointly announced today they have signed a letter of intent to form a new company called Subjex China to be headquartered in Shanghai, China.
Under the terms of the letter of intent, existing assets, contracts, revenues and cash of ShangHai Geason Digital Technology would be put into the new company, along with up to 1 million shares of U.S. based Subjex Corporation (SBJX). The final agreement is expected to be in place later this month.
The equity split of the new company would be 50/50 between the owners of ShangHai Geason Digital Technology and Subjex Corporation. After the new company is formed ShangHai Geason Digital Technology would cease to operate, while the management of the new company will be made up of both companies. Five slated board seats remain to be announced.
Additional terms state that Subjex China would combine the existing business models of the two companies and pay dividends. Subjex Corporation would grant Subjex China exclusive distribution rights for Subjex products and use of it trademarks within China. Subjex China will contract Subjex Corporation to develop the Chinese version of its dialogue platform for an undisclosed sum.
"When we discovered the remarkable work Subjex was doing with its dialogue platform, we quickly sought them out, recognizing their CSR product and business model as affordable, superior and right for the Chinese markets," commented Michcal Zhou, ShangHai Geason Digital Technology, CEO. "We are expecting big market share in China and we feel that Subjex China will be the perfect vehicle to take public on the Shanghai Stock Exchange (SHSE)."
China-based ShangHai Geason Digital Technology is one of the largest providers of text messaging software (Geason SMS Manager) and other software platforms (GPRS Wireless). Clientele include SIEMENS (NYSE:SI), General Electric Company (NYSE:GE), China Merchants Bank (Shanghai:600036.SS), Shanghai AXA, TCL Electric enterprise, China Eastern Airlines (NYSE:CEA) (Shanghai:600115.SS) (HKSE:0670.HK) and others. With 7 China provincial agents and 300 distributors throughout the country, ShangHai Geason Digital Technology has a strong position it the Chinese markets.
Based in Minneapolis, Minnesota, USA, Subjex Corporation has set the standard in artificial intelligence dialogue communication platforms. The company's flagship product SubjexCSR (Customer Service Representative) facilitates meaningful text based humanlike conversations, with thousands of simultaneous visitors reducing customer service costs and increasing sales with little or no human intervention. For more information, or to try the technology visit the Company's website at www.subjex.com.
This news release contains "forward-looking statements" within the meaning of Section 27a of the Securities Acts of 1933 and Section 21E of the Securities Exchange Act of 1934. Although the Company believes that the expectations reflected in such forward-looking statements are reasonable, it can give no assurance that such expectations will prove correct.