Alternet Systems, Inc. Reaches Agreement in Support of Estimated $140 Million in Fare Collection With the Association of Urban Buses of the City of Guatemala
Expected Fare Increase Could Bring Fare Collection Revenue to $280 Million by 2010
MIAMI, FL--(Marketwire - November 18, 2008) - Alternet Systems, Inc. (OTCBB: ALYI) today
announced that Transtech de Guatemala, S.A., a regional subsidiary of the
Company's joint venture with Tianjin IC Card Public Network Systems Co. LTD
(TCPS), has entered into a letter of intent (LOI) with the Association of
Urban Buses of the City of Guatemala. Under this agreement, the parties
are developing a 10 year, renewable contract where Transtech de Guatemala
will provide the Association urban mass transportation technology and fleet
replacement financing facilities. The proposed new mass transportation
systems and fleet replacement financing would benefit a population of more
than 3 million within the City of Guatemala. The expected fare volume in
2009 is approximately $140 million. However, a fare increase is expected
that could increase fare collection revenue to $280 million by 2010.
Alternet used their Guatemalan subsidiary to forge their relationship with
the Association of Urban Buses of the City of Guatemala.
Trade Mission to China to Review Existing Mass Transportation Technology
Operations in Action
Members of the Association of Urban Buses recently traveled to China with
Transtech, the Company's joint venture with Tianjin IC Card Public Network
Systems Co. LTD (TCPS). During the trip, members of the Association
reviewed TCPS' mass transportation technology and operations in production
to see how these systems would benefit their own city's mass transportation
system in Guatemala.
TCPS is a large company based just outside of Beijing in Tianjin, China,
providing urban mass transportation fare collection with contactless card
and terminal solutions. TCPS systems have been developed and implemented
in 76 cities and process daily prepaid fares for more than 300 million
people.
Technology and Fleet Financing for the City of Guatemala
Under the terms of the LOI, the Association of Urban Buses will consider
similar technology implementations to the ones they reviewed in China for
the City of Guatemala, which include prepaid fare collection system, fleet
management systems, control systems and user security systems. In addition
to the proposed technology innovations for the city's mass transportation
system, Transtech has proposed facilitating financing of new buses for the
City of Guatemala's fleet replacement program through their partnership
with the largest bank in Guatemala, Banrural. The proposed lending
facility is estimated at $350 million and would be used to acquire 3,400
new buses for the city.
Strategic Partnership with Banrural, the Largest Bank in Guatemala
Alternet recently announced that their joint venture with Tianjin IC Card
Public Network Systems Co. LTD (TCPS), Transtech Sino America, Inc.,
finalized a partnership with Banrural (www.banrural.com), the largest bank
in Guatemala with the largest number of bank branches. In the partnership,
Banrural will serve as Transtech's financial partner for E-transaction,
E-ticketing and mobile payment solution projects in Guatemala and the
surrounding region, with an initial focus on mass transportation
e-ticketing solutions. Transtech will benefit from a variety of financial
services Banrural provides, including trust managements, cash collection
and sales channels through Banrural's extensive network of ATM's.
Initially, Banrural's ATM network will be used as a recharge point of sale
system for prepaid bus fare collection. Additionally, the Banrural
partnership may provide key financing to Transtech's fleet replacement
initiative in Latin America, providing high efficiency and low emission
liquid petroleum gas (LPG) buses to municipalities with aging or
inefficient bus fleets. The partnership has the potential for additional
expansion to include utilities prepayment and municipal services.
ALYI Corporate Fact Sheet
A Fact Sheet highlighting the Company's recent acquisition of TekVoice
Communications, E-Transaction technology, mass transportation management
services and strategic partnerships is now available.
If you are interested in receiving a copy of the Fact Sheet call
214-556-5927 or send an e-mail to Red River Advisors at
alternet@redriveradvisors.com.
About Alternet Systems (www.alternetsystems.com)
Alternet Systems Inc. (OTCBB: ALYI) provides: telecommunications services;
education and health-care application software and systems; and electronic
transaction platforms for the mass transportation and utility markets.
Alternet Systems Inc. is a U.S. corporation headquartered in Miami,
Florida.
Certain statements in this news release may contain forward-looking
information within the meaning of Rule 175 under the Securities Act of 1933
and Rule 3b-6 under the Securities Exchange Act of 1934, and are subject to
the safe harbor created by those rules. All statements, other than
statements of fact, included in this release, including, without
limitation, statements regarding potential future plans and objectives of
the Company, are forward-looking statements that involve risks and
uncertainties. There can be no assurance that such statements will prove to
be accurate and actual results and future events could differ materially
from those anticipated in such statements.