Weida Communications Announces New Orders in China

Newtown, Pennsylvania, UNITED STATES

NEWTOWN, Pa., Aug. 24, 2005 (PRIMEZONE) -- Weida Communications, Inc. (Other OTC:WDAC), a U.S. company providing satellite communications services throughout China, today announced that it has received three new contracts to provide satellite communications systems for electric power utilities in China. The contracts total nearly $250,000 in product sales and subscriber service revenue anticipated to be received over the next 2-3 months. Weida also has concluded a sales agency agreement with a company associated with a national safety bureau that will provide it with marketing and sales access to China's industrial safety sector and its coal mining industry.

In Fuxin City, Liaoning Province, the Fuxin Electric Power Bureau has ordered 36 new satellite communications terminals for video conferences and its long distance training network. These are in addition to 60 terminals ordered previously. They are part of a pilot project of China's national electric power agency. The initial goal of the project is to develop a satellite communications network throughout Liaoning Province.

Nei Mongolia Baotou Electric Power Bureau has ordered six satellite communications terminals to be used for electric power dispatch.

The Shenyang Extra-High-Voltage Bureau in Liaoning Province has ordered nine fixed satellite communications stations and one mobile station. The systems will be used principally for video conferences.

Weida also has signed an agency agreement with Beijing Anxin Chuangye Information Technology Development Co., Ltd., a company subordinated to the National Safety Production Technique Supervision General Bureau. It will represent Weida's products and services as they apply to industrial safety applications and the coal mining industry.

"All of these recent orders represent the beginning phases of more extensive government projects," noted Chris Lennon, Weida's chief operating officer. "And, if they develop as we expect, they will require additional satellite communications systems," Lennon said.

About Weida Communications, Inc.

Weida Communications is a U.S company that provides data communication services via satellite to businesses and government agencies throughout China. The company participates in the fast-growing China telecom market through its majority profit sharing interest in and control of the only wholly privately-owned company in China holding a license for bi-directional VSAT (Very Small Aperture Terminal) satellite communications services. VSAT is an attractive telecommunications solution in China with its exploding demand for telecommunications, dense urban areas, and extensive mountainous terrain. For more information, visit the Weida Communications, Inc. Web site at http://www.weida.com.

This press release contains forward-looking statements as that term is defined in the Private Securities Litigation Reform Act of 1995. Such statements are based on the current expectations of the management of Weida Communications, Inc. (the Company) only and are subject to a number of risk factors and uncertainties, including but not limited to the Company's immediate need for equity financing in order to continue operations and to consummate the acquisition of a legal ownership interest in Guangzhou Weida, limited operating history, Weida Communications' historical and likely future losses, uncertain regulatory landscape in the People's Republic of China, fluctuations in quarterly operating results, the Company's reliance on the provision of VSAT-based communications services for the majority of its revenues, changes in technology and market requirements, decline in demand for the Company's products, inability to timely develop and introduce new technologies, products and applications, difficulties or delays in absorbing and integrating acquired operations, products, technologies and personnel, loss of market share, and pressure on pricing resulting from competition, which could cause the actual results or performance of the Company to differ materially from those described therein. We undertake no obligation to update these forward-looking statements. For a more detailed description of the risk factors and uncertainties affecting the Company, refer to the Company's reports filed from time to time with the Securities and Exchange Commission, including the information about risk factors provided in Item 1, "Business," in the Company's Annual Report on Form 10-K for the fiscal year ended June 30, 2004, filed with the SEC on October 12, 2004.


Contact Data