Sydney, Jan 18, 2008 AEST (ABN Newswire) - m2m Corporation Limited ("m2m" or "the Company") (ASX: MCL) advises that through its Hong Kong subsidiary, Starband Communications Ltd ("Starband"), it has formally settled a joint venture with Baipin Technology Co., Limited ("Baipin") to increase sales and distribution of internet related services in China.
Baipin, a newly formed company, is a spin-off from an existing marketer of internet related services in Beijing. Baipin, which is based in Beijing, will market exclusively a range of products and services for Starband under a generic brand for the Chinese market.
Michael So, CEO of m2m, said "We are very pleased with the launch of this joint venture. Our strong portfolio of internet products suites will leverage off our joint venture for expansion into China and will help us attain an economically significant share of this expanding market."
The joint venture is a profit sharing arrangement in which Baipin will receive 10% of the net profits while Starband will retain 90% of the net profits with the option to acquire Baipin at a later date once predefined milestones have been achieved.
Baipin is planning to launch the internet-based services in February 2008 once completion of the Chinese eCommerce portal is reached.
Contact
Ian Clarkson (Executive Chairman)
TEL: +61-438-399-751
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