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December 3, 2007 |
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ASIA PREMIUM: Plans to Expand and Change Name to P Phone Inc Asia Premium Television Group, Inc. , a China-based marketing and ad sales company, today announced plans to expand into China's mobile sector and change its name from Asia Premium Television Group, Inc. to P Phone, Inc. in order to reflect its enhanced business strategy. On November 23, 2007, the company entered into an agreement with the China Mobile and Communications Association to acquire 100% of the P Phone Project (the "P" in "P Phone" stands for personalization and payment), a business venture that is developing P Phone, a mobile-based solution that will enable Personal Media and Mobile Payment on cell phones in Mainland China. Based in Beijing, CMCA is China's leading association of Telecoms with strong mobile service development and distribution capabilities. Its members include China Mobile, China Telecom, China Unicom, China Netcom, China Railcom, China Satcom and most of the leading telecom-related product manufacturers and distributors in China. Under the terms of agreement, ATVG will acquire from CMCA 100% of the rights to the P Phone Project for an aggregate consideration of US$2.8 million. The consideration will be satisfied through the issuance of 700,000 shares of ATVG common stock, valued at US$4 per share. (ATVG's stock closed at US$4 on November 21, 2007.) 30% of these 700,000 consideration shares will be issued to CMCA and 70% of the shares will be issued to CEC Unet plc, CMCA's strategic partner in the development of the P Phone. CEC Unet (AIM: CECU) is a leading Chinese mobile payment company that provides mobile top-up payment services to Chinese mobile users. It is playing a key role in developing and operating the P Phone mobile solution. It is also contributing access to its 50,000 retail sales outlets and 7 million mobile consumers in Mainland China and is fast expanding throughout China. P Phone technology is expected to play a crucial role in helping mobile companies such as CEC Unet convert their customers into loyal community members. For example, CEC Unet will be able to convert its 7 million mobile consumer base from occasional top- up consumers, who only access CEC Unet's (or any other service provider's) mobile media and e-payment services on average once every two months, to loyal P Phone users who access their mobile e-payment and personal media services on a daily basis. This will enable the company to build a loyal P Phone portal and user community for mobile payment and media consumption. The company's purchase of the P Phone Project includes the following key terms: (1) CMCA will invest up to US$1.8 million into the P Phone Project and manage its operations; (2) CMCA will undertake on a best efforts basis to reach at least 25 million users throughout China within 36 months of the signing of the agreement; (3) CEC Unet will contribute its 50,000 outlets and 7 million consumers for the distribution of the P Phone solution; and (4) The Company will issue to CMCA 200,000 bonus shares of ATVG common stock for every additional 5 million P Phone users CMCA attains for the company (beyond the initial 25 million user target). The maximum number of bonus shares that can be issued is 800,000. Pending completion of the agreement, CMCA and CEC Unet will both become significant shareholders of P Phone, Inc. (a.k.a. ATVG). They will provide operational support to the Company as it deploys its P Phone solution as the backbone of its integrated online-offline marketing services to corporations. About the P Phone Mobile Solution P Phone is a mobile solution that, once embedded in mobile phones, will provide users with: (1) Personal Media and (2) Mobile Payment. The Personal Media function will be powered by PIMIE (PIMIE stands for personal, intelligent, mobile, Internet, explorer), an innovative mobile phone technology that the Company intends to acquire in the future. PIMIE has the ability to intelligently learn a user's interests and browsing behavior and then deliver pre-loaded content and search results based on this behavior. The Mobile Payment function will be powered by mobile payment technology, developed and supplied by CMCA's strategic partner, CEC Unet, as well as others. The Company plans to launch P Phone in Fiscal 2008 through the following methods: (a) Co-Branding. The Company will co-brand with existing mobile phone brands by embedding the P Phone technology into their chips. This distribution method will enable the Company to capture market share of new cell phones entering into the market. (b) SIM Card and Smart Film Distribution. The Company will distribute P Phone by selling P Phone SIM cards and P Phone smart film, a specialized data film that is applied to the back of a normal mobile SIM card. The Company will sell these P Phone products through existing mobile SIM cards and payment networks such CEC Unet's network of 50,000 sales outlets. This distribution method will enable P Phone to capture market share from cell phones already existing in the market. plans to generate revenue through mobile-marketing, commissions on bill payments and eventually mobile commerce. Mr. Li Li, Chairman of Asia Premium Television Group, Inc. commented on these developments, "We have acquired the P Phone Project and changed our company name to P Phone, Inc. in order to best reflect our enhanced business strategy for Fiscal 2008 and beyond. By expanding our existing brand marketing operations to include mobile phone-based marketing and commerce services, we are positioning ourselves for long-term, scalable growth. At the same time, we are staying true to our original objectives -- to most effectively connect brands and content with their target consumers in Mainland China." P Phone, Inc. will continue to be quoted on the NASDAQ OTC Bulletin Board under the symbol "ATVG" until further notice. Beijing-based Asia Premium Television Group was incorporated in Nevada in 1989 and is operating in China. The company's ASTV, together with its subsidiaries, operates as a single segment business and provides advertising, media and marketing solutions to product manufacturers, service providers and other clients located in China. Asia Premium Television Group, Inc., provides marketing, brand management, advertising, media planning, public relations and direct marketing services to clients in the People's Republic of China. The Company's primary operating activities are publishing advertisements as agents for clients; Media consulting services; and Advertising production. Going Concern Doubt At Sept. 30, 2006, the company had a working capital deficiency of US$3,470,665. The company's management expressed substantial doubt about the company's ability to continue as a going concern due to liquidity problems. However, management believes the going concern is mitigated because of these factors: a) convertible notes payable in the amount of US$4,000,000 is included in current liabilities but the note is held by a significant shareholder and will be repaid by conversion into common stock; b) the Company has shown a net profit in each of the two most recent fiscal years and expects the trend to continue; and the Company has generated positive cash flows in each of the two most recent fiscal years and expects the trend to continue. |
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