NEW YORK, Aug. 10, 2005 (PRIMEZONE) -- Orsus Xelent Technologies Inc. (OTCBB:ORXT) today announced that later this year it will purchase a 10 percent ownership in Chang Zhou Moben Communication Co., Ltd., a major People's Republic of China original equipment manufacturer (OEM) that has mass-produced several brands of cell phones including Philips, Siemens, and others.
The investment is expected to help Orsus Xelent accelerate production, lower costs and optimize the quality of its ORSUS brand line of mobile phones.
In addition, the partnership will permit Orsus Xelent to apply for its own license for GSM cell-phone production and sale from China's National Development and Reform Commission. If received, the license will allow the company to discontinue the license royalty fees it has been remitting to its manufacturing production partner, CEC Cellular Limited.
Chang Zhou Moben is one of China's leading mobile phone OEMs, with an annual production capacity of 6 million units. The company occupies an area of 25,000 square meters and has six high-capacity production lines equipped with advanced surface mount technology and analyzing testing equipment.
Wang Xin, Orsus Xelent President and CEO, said, "We are very excited about this collaboration with Chang Zhou Moben. We have every confidence this joint venture will make a positive contribution to revenue and earnings in the coming year."
Orsus Xelent Technologies Inc. is a designer of feature-rich mobile phones in the People's Republic of China. These features include 1.8-inch to 2.2-inch TFT dual-color displays; one to 120 minutes video recording; 300K to 1.3 million pixel photography; MP3, MPEG4 and U disk support; dual stereo speakers; multimedia messaging; 40 to 64 polyphonic ring tones; flip-phone technology; and innovative lightweight design. Orsus achieves optimum market penetration via collaboration with two strategic partners: CEC Cellular Limited provides low-cost production capacity as well as extensive sales and distribution networks; Beijing Xingwang Shidai Tech & Trading Co., Ltd. provides provincial distributors, city distributors and dealers with extensive sales networks throughout the PRC. For further information, please consult the company's Web site: www.orsus-xelent.com
Information Regarding Forward-Looking Statements: Except for historical information contained herein, the statements in this Press Release are forward-looking statements that are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements involve known and unknown risks and uncertainties, which may cause our actual results in future periods to differ materially from forecasted results. These risks and uncertainties include, among other things, product demand, market competition, and risks inherent in our operations. These and other risks are described in our filings with the Securities and Exchange Commission.