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Peak Set to Receive Increased Royalties from Chinese Venture(April 10, 2012)
MONTREAL, QUEBEC -- (Marketwire) -- 04/10/12 -- Peak Positioning Technologies Inc. ("Peak") (TSX VENTURE:PKK) announced today that it has entered into an enhanced revenue sharing agreement with its Chinese partner, LongKey-Hong Kong Limited ("LongKey"), an exclusive distributor of mobile and web applications to major telecommunication companies and banks in China. The new revenue sharing provisions supersede those contained in the software development and distribution agreement between the parties, dated March 30, 2011.
Since forming the partnership venture last year, Peak and LongKey have redesigned and updated LongKey's applications platform for mobile devices. The new service, which is now ready to be launched, is capable of delivering all of Longkey's current and future mobile applications through a single platform, including those co-developed with Peak. Applications can be OEM-installed, telecom installed or downloaded by the end-user.
Under the terms of the revenue-sharing enhancements announced today, Peak will receive royalties equal to 30% of LongKey's royalties, versus 15% previously. In addition, Peak will now receive a share of royalties on LongKey's sales of its complete line of mobile applications as well as its web-based applications, such as e-commerce and website hosting. The new revenue sharing provisions were negotiated by the parties to better reflect the important technological and financial contributions made by Peak to the partnership-venture.
"We decided in early 2011 to make a strong commitment to China, the largest and fastest growing cellular phone market in the world," said Johnson Joseph, Chief Executive Officer of Peak. "China, coupled with the unique relationship we enjoy with LongKey, amount to an extraordinary opportunity to showcase our skills and develop Peak into a self-sustaining growth company. We spent the last 12 months working hard to build foundations with LongKey and today's announcement demonstrates that our efforts are paying off. Our shareholders can now look forward to exciting growth in revenues in the months and years ahead", Mr. Joseph concluded.
About The Chinese Telecom market:
According to the Ministry of Industry and Information Technology of the People's Republic of China and based on published data from China's three largest telecom service providers, there were 987 million mobile subscribers in China as of January 2012. Since 2008, the Chinese government has made a concerted effort to increase the use of 3G technology in China and the Chinese smartphone market is growing dramatically. U.S.-based International Data Corporation recently released a report indicating that China will account for 20.7%, or 137 million, of the projected 660 million global smartphone shipments in 2012, leap-frogging the United States to become the biggest smartphone market in terms of annual shipments in the world.
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, business management applications, 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.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Peak Positioning Technologies Inc.
President and CEO
514-340-7775 ext.: 501
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