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Peak Chinese Partner Signs E-Commerce Agreement with Industrial and Commercial Bank of China(July 17, 2012)
MONTREAL, QUEBEC -- (Marketwire) -- 07/17/12 -- Peak Positioning Technologies Inc. ("Peak") (TSX VENTURE:PKK) today announced that its Chinese partner, LongKey-Hong Kong Limited ("LongKey"), has secured a mandate from the Industrial and Commercial Bank of China (ICBC), to provide the e-commerce platform to be used by ICBC's business customers. The agreement comes at the end of a six-month pilot project where select ICBC business clients used the e-commerce platform and its related tools to sell their products and services on the Internet. Under the terms of the existing partnership agreement between LongKey and Peak, fees received by LongKey from ICBC for the provision of the e-commerce platform will be shared with Peak.
LongKey's proprietary e-commerce platform, to be bundled with various financial services offered by ICBC, will provide ICBC's business customers with a means to quickly establish an online presence and participate in the fast-growing online shopping market in China. In return for the combination of an annual fee and transaction fees, subscribing customers will get tools, templates, easy-to-follow step-by-step instructions, and the support needed to create and manage their e-commerce stores. In addition, they will be featured on the ICBC e-commerce merchant portal, marketed and promoted by ICBC, where potential and existing clients will be able to easily find their products and services. The ICBC-branded e-commerce merchant portal is expected to go live in the fall of 2012, with a mobile version expected to follow shortly thereafter. All transaction and payment processing services for clients using the e-commerce platform will be provided by ICBC.
"There are many e-commerce platforms out there and ICBC could have chosen anyone of them", said Alex Wang, President and CEO of LongKey. "I think the fact that LongKey's e-commerce platform was selected out of so many possibilities by a leading financial institution is testimony to the quality of our applications and our dedication to customer service. We have worked very hard to win this mandate and we're extremely pleased to have succeeded. Not only will our e-commerce platform be featured, but this will also allow LongKey to offer a host of additional services to ICBC's numerous business clients", Mr. Wang went on to say.
"Today's announcement is further evidence of the value of our partnership with LongKey", said Johnson Joseph, President and CEO of Peak. "This agreement provides Peak with a second revenue stream to complement our telecom-related activities and it allows our shareholders to participate in the largest and fastest-growing e-commerce market in the world. What's more, the e-commerce mandate has the potential to open a door for Peak to provide mobile payment and mobile banking related solutions in China in association with one of the country's largest and most prestigious financial institutions", he stated.
About the Chinese E-Commerce Market:
According to a recently issued report by the Boston Consulting Group (BCG), the number of online shoppers in China will grow from 145 million people in 2010 to an estimated 329 million people in 2015; and, by then, the Chinese e-commerce market will be worth an estimated RMB 476 billion ($75 billion USD). Rapid e-commerce growth is being fuelled by the Chinese government efforts to modernize the country's telecommunications capabilities through the use of broadband internet services. China also suffers from an underdeveloped store-based retail industry that is spread out across a massive territory. As more and more Chinese join the ranks of online shoppers, they are gaining confidence in e-commerce as a way to acquire previously unavailable goods at attractive prices. In effect, China appears to be bypassing the traditional model of retail distribution somewhat and going straight to e-commerce.
About the Industrial and Commercial Bank of China:
Headquartered in Beijing, China, the Industrial and Commercial Bank of China (ICBC) is the largest bank in the world by profit and market capitalization. As of March 2012, it had over 400,000 employees. ICBC provides a wide range of financial products and services to over 4 million corporate clients and 259 million individual customers through 16,227 outlets across China, 203 overseas subsidiaries and a global network of more than 1,562 correspondent banks as well as Internet banking, telephone banking and self-service banking. ICBC's shares are publically traded on the Hong Kong Stock Exchange and the Shanghai Stock Exchange. For more information: http://www.icbc.com.cn/icbc/sy.
About Peak Positioning Technologies Inc.:
Peak Positioning Technologies Inc. (TSX VENTURE:PKK), is a Canadian software developer for smartphones and other mobile computing devices, conducting business primarily in China and North America. In association with its partner, LongKey-Hong Kong Ltd, the company has developed a suite of applications for mobile devices that includes: cloud-based calendar, e-mail and contacts synchronization, automated device configuration, and HomeWave(TM) mobility security. While LongKey markets the applications in China through its partnerships with major Chinese telecommunication companies and banks, Peak plans to similarly market the applications for its own account in North America. For more information: http://www.peakpositioning.com.
About LongKey-Hong Kong Ltd.:
LongKey Hong Kong Ltd., through its subsidiary LongKey Software Technology Ltd., provides a wide range of IT solutions, and cloud-based business management and mobile applications based on its proprietary Unified Information Services Platform (UISP). LongKey's applications are distributed to end-users in China by some of China's largest telecom and banking entities. For more information: http://www.longkeysoft.com.
Forward-Looking Statements / Information
This news release may include certain forward-looking information, including statements relating to business and operating strategies, plans and prospects for revenue growth, using words including "anticipate", "believe", "could", "expect", "intend", "may", "plan", "potential", "project", "seek", "should", "will", "would" and similar expressions, which are intended to identify a number of these forward-looking statements. Forward-looking information reflects current views with respect to current events and is not a guarantee of future performance and is subject to risks, uncertainties and assumptions. The Company undertakes no obligation to publicly update or review any forward-looking information contained in this news release, except as may be required by applicable laws, rules and regulations. Readers are urged to consider these factors carefully in evaluating any forward-looking information.
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Peak Positioning Technologies Inc.
President and CEO
514-340-7775 ext.: 501
Pinnacle Capital Markets
Spyros P. Karellas
President and CEO
Pinnacle Capital Markets
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