BEIJING, Sept. 23, 2004 (PRIMEZONE) -- Barrow Street Research, a pioneering online research firm based in New York City, today reported that it has initiated coverage of China Cable and Communication, Inc. (OTCBB:CCCI), a leading China-based cable TV company. A full copy of the report is available at http://www.barrowstreet.com.
"In our opinion, China Cable and Communication (CCCI) is uniquely well positioned to capitalize on the growing market for cable and telecommunication offerings in China," said research analyst John Attalienti. "As the only U.S. publicly traded company approved by the Chinese central government to own interests in Chinese cable systems, CCCI is committed to pursuing an aggressive business strategy, including acquisitions of new properties."
Recently, the report notes, CCCI announced a new agreement to acquire a fiber optic backbone network throughout China, which would establish the company as a major player in telecommunications as well as cable TV in that country, whose economy is among the fastest growing in the world.
"To that extent," the report says, "we believe that the CCCI shares represent an opportunity for high-risk tolerant investors to own a company that is well positioned to exploit a growing niche within a dynamic economy. Accordingly, we are initiating coverage of CCCI with a strong buy rating."
Among the company's specific investment appeals, Barrow Street explains, is that CCCI is the first and still the only foreign investor approved by the Chinese National Authority for Broadcasting.
"The company is emerging as a major player in the Chinese communication market by offering the convergence of telecommunications, digital cable TV, and the Internet -- all supported by a state-of-the-art fiber optic network," the research firm reports. Moreover, it says, CCCI plans on strategically consolidating an existing universe of 1,800 CATV operators in China to become a leading cable operator in the country.
In a very recent and significant development, says the research analyst, the company announced on June 14th that it entered into an agreement to acquire a two-core fiber backbone network covering 410 Chinese cities, with a total length of nearly 20,000 miles.
"CCCI possesses a strong and capable cross cultural and cross discipline management team with extensive connections in China," says the Barrow Street report, adding "...We anticipate that, over the next several quarters, investors will begin to see a steady stream of revenue developing for the company with full year 2004 revenues anticipated to be approximately $6 million."
"...A prime objective of CCCI management is to become the largest broadband optical fiber network operator in China and, by consolidating the existing 1,800 CATV operators, to become a leading cable TV operator in China. As such, investors have the opportunity to get in on the ground floor in a company that is poised to take advantage of the greatest potential communications market in the world with a convergence of high technology services," the report concludes.
Barrow Street Research received $5,000 from the Investor Relations Network for its time and due diligence spent in preparing its report.
About China Cable and Communication
China Cable and Communication, Inc. is a China-based cable TV company. Through its British Virgin Island subsidiary, the Company is the first foreign company to own and operate a cable television network in China.
Located 85 miles south of Beijing, the network currently offers 39 channels within the Baoding city limits and eight additional channels to outer areas in the Baoding metropolitan area. It transmits in both analog and digital over its fiber optic network and through 22 substations. With its fiber optic network, Baoding network is capable of transmitting 37 analog television programs, six digital signals and one FM music program. In addition to its cable television transmission services, Baoding network offers Internet access and value added services, such as broadband Internet access and on- demand services through its proprietary set-top boxes.
China Cable and Communication is well positioned as a foreign investor approved by The State Administration of Radio, Film and Television ("SARFT"), China's national regulatory authority for the broadcasting industry, to own interests in and provide operational management support to cable television networks in the People's Republic of China (PRC). The SARFT approval together with the trading of CCCI's common stock in the US, provide CCCI with a favorable advantage in access to foreign capital. China Cable and Communication, Inc. trades in the United States, under the ticker symbol CCCI, in order to provide U.S. investors with the opportunity to invest in a company that owns interests in a PRC cable television network. For more information, please visit http://www.chinacable.us.
The forward-looking statements contained herein are subject to certain risks and uncertainties that could cause actual results to differ materially from those reflected in the forward-looking statements. Some of these include, but are not limited to, our availability of capital, political occurrences and events in China, the terms of our 8% convertible preferred stock, operations of the Baoding joint venture, demand for the products of the Baoding joint venture, the economy of China, and other factors. Readers are cautioned not to place undue reliance on these forward-looking statements, which reflect management's analysis only as of the date hereof. The Company undertakes no obligation to publicly revise these forward-looking statements to reflect events or circumstances that arise after the date hereof. Readers should carefully review the risks described in other documents the Company files from time to time with the Securities and Exchange Commission, including Amendment No. 1 to the Form SB-2 registration statement filed with the Securities and Exchange Commission on December 8, 2003, the Annual Report on Form 10-KSB for the fiscal year ended December 31, 2003, as well as the Quarterly Reports and Current Reports on Form 8-K by the Company.