FORT LAUDERDALE, Fla., July 11, 2005 (PRIMEZONE) -- Dragon Venture (Pink Sheets:DRGV), a holding company of high-tech companies in China, reports today that its subsidiary, Shanghai Yazheng Information Technology Company, Limited, has completed the acquisition of 51% ownership of Shanghai Fomde Information Technology Company, Limited ("Fomde") via a stock exchange. The purchase was completed with restricted shares of DRGV, priced at $0.08 per share, that were issued to acquire the 51% ownership on the basis of 51% of net tangible assets of Fomde ended June 30, 2005. In 2004, Fomde generated approximately $3 million in sales with $0.6 million in net come.
Fomde is engaged in the business of computerized automation control for hotels, commercial, residential and school buildings. The Company's IT department has created a wide variety of proprietary management applications to assist in creating valuable efficiencies in the performance of property management. These applications assist the management of various types of facilities with computerized climate control, access and security control, as well as additional management tools. The company has been certified by the Ministry of National Architecture of China and the Ministry of Information Technology. It was certified ISO 9001 in December 2004. The company has also developed software applications pertaining to quality guarantee systems in product selections, supplier selections, technical support, and design, all involving post-construction services.
Fomde's products and services include total management solutions for a wide variety of properties. The Company utilizes BAS, SAS, FAS, CAS, OAS and IBMS. The company's proprietary systems integration software solutions also include the design of multi-media conference needs including sound systems, digitalized campus information systems, as well as a host of other specialized industry control applications.
Lawrence Wang, CEO of Dragon Venture, commented, "We are very excited with this addition in Dragon's high-tech family. As an incubator of high-tech companies in China, we seek to acquire a variety of emerging high-tech companies in China for diversifying our holdings. This acquisition represents a milestone for our company in achieving substantial growth in revenues and earnings. We believe that the dynamic increases taking place in the high-tech economy in China offers Dragon Venture a tremendous growth opportunity in the coming year. Management actively and aggressively seeks strategic acquisitions in China. We anticipate we will commence with more substantial acquisitions in the coming months."
About Dragon Venture
Dragon Venture ("Dragon") is doing business in China through its subsidiaries. Dragon was established to serve as a conduit between Chinese high-growth companies and Western investors. The current focus of Dragon is on the development of wireless 3G-based applications and business solutions and on the development of certain sale channels of IT products and information technologies. Two companies that Dragon has acquired are among the leading providers of mobile Internet applications and business solutions in China. As China emerges as a growing force on the global stage, Dragon's professionals will provide invaluable services for Western investors seeking to gain access to the Chinese high-tech economy. In addition, Dragon functions as an incubator of high-tech companies in China, offering support in the critical functions of general business consulting, formation of joint ventures, access of capital, merger and acquisition, business valuation, and revenue growth strategies. Dragon will develop a portfolio of high-tech companies operating in China. Our focus will be on innovative technological applications, which are poised to alter the competitive landscape of the industry. For more information about Dragon Venture, please visit http://www.dragonventure.net
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