BEIJING, Oct. 2, 2006 (PRIMEZONE) -- Greater China Media & Entertainment Corporation (OTCBB:GCME), an integrative professional media and entertainment company headquartered in Beijing, China, today announced that it has signed a definitive Agreement with Beijing New-Element Corp. Ltd. ("New-Element"), a marketing and promotion company specializing in planning business exhibitions, promotions and other events for business clients in China.
On September 25, 2006, the Company and New-Element, a company organized under the laws of the People's Republic of China, entered into a Joint Venture ("Joint Venture") Agreement ("the Agreement") to jointly conduct a marketing and branding business serving high quality companies in the People's Republic of China.
The Company will own 51% of the Joint Venture company and will hold a majority of the seats on the Board of Directors. New-Element will own 49% of the Joint Venture company and will hold a minority of the seats on the Board of Directors. The Company will provide the required working capital for the Joint Venture, and will be responsible for the Joint Venture's accounting management.
"This joint venture will connect enterprises with the film and television industry for media advertising and promotional opportunities appropriate to each party's advertisement strategies," said John Hui, Vice-Chairman and Chief Executive Officer of Greater China Media & Entertainment Corporation. "Strategically, this joint venture further expands and diversifies our company's reach and visibility within the many areas of professional media. We are pleased to partner with New-Element, a well-respected and well-positioned firm with a client base that includes many internationally recognized media and entertainment companies."
New-Element has a strong and growing position in the marketing promotion industry in China, a rapidly accelerating market with high profit margins and a strong yearly growth rate. New-Element has been profitable for the past seven years and continues to generate solid top and bottom line growth.
About Beijing New-Element Corp. Ltd.
Headquartered in Beijing with branches in Shanghai and Shenzhen, New-Element specializes in planning events, exhibitions and promotions for business clients in China. Its rapidly growing clientele includes such high-profile international companies as General Motors, Shell, Sprint, General Electric, Porsche, Procter & Gamble, Siemens and AMD. www.new-element.com
About Greater China Media & Entertainment Corporation:
Greater China Media & Entertainment Corp. is an integrative professional media and entertainment company which covers various areas including film and TV program production, management, promotion and distribution. The Company will have its own film and television production center, promotion agency, audio-visual distribution company, digital network company, talent agency, and sales and advertising agency. Together the team is capable of making films, TV programs and related projects on a large scale.
In June 2006, the Company signed and closed an Acquisition Agreement with Triumph Research Limited, which is a BVI company and party to a Joint Venture Agreement with Beijing Tangde International Film and Culture Co., Ltd. ("Tangde"), a Chinese company. In September 2006, the Company formed a joint venture with Beijing New-Element Co. Ltd., a promotion and marketing company based in Beijing. www.greaterchinamedia.com
Forward-looking statements
This report contains "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. All statements other than statements of historical facts included in this report are forward-looking statements. Forward-looking statements involve risks and uncertainties including, but not limited to, economic and political factors; developments of the Chinese and North American markets and changes in regulatory matters; our business strategies and future plans of operations; the market acceptance and amount of sales of our products and services; our historical losses; the competitive environment within the industries in which we compete; and our ability to raise additional capital, currently needed for expansion.
The Company cautions that forward-looking statements are subject to certain risks and uncertainties that could cause actual results to differ materially from those indicated in the forward-looking statements due to several important factors.