Open EC Technologies, Inc.

Open EC Technologies, Inc.

October 10, 2007 11:22 ET

Open EC Technologies, Inc. Closes Acquisition of Shares of Fine High Group Ltd. and Its China-Based Subsidiary Shenzhen Jinhuaye Software System Ltd.

NORTH VANCOUVER, BRITISH COLUMBIA--(Marketwire - Oct. 10, 2007) - Open EC Technologies, Inc. ("Open EC" or the "Company") (TSX VENTURE:OCE) (PINK SHEETS: OCEIF) is pleased to announce that it has completed the acquisition of all of the shares of Fine High Group Ltd., ("Fine High"), a British Virgin Island company, which has as its subsidiary, Shenzhen Headware Software System Ltd. ("Headware"), which in turn owns 60% of the issued and outstanding shares of Shenzhen Jinhuaye Software System Ltd. (both incorporated in the People's Republic of China ("PRC"), a transaction previously announced by the Company on June 25, 2007.

The key feature of the acquisition is the ability to leverage the two company's software solutions, expertise, resources and knowledge into solutions that will expand Open EC's market as well as increase overall profit and growth for the organization. The combined company has over 400 employees with customers ranging from mid-sized to fortune 100 companies across North America and Asia. Open EC will be reporting the consolidated financial operations of the Company and Fine High as of July 1, 2007 when reporting on the Company's Q1 2008 results ended September 30, 2007.

Mr. Martyn Armstrong, President and CEO of OpenEC stated, "With the acquisition of Fine High, we are in a strong position to capture the fast growing Chinese market. We expect the combined company to turn profitable immediately, subsequent to the closing of the acquisition." Armstrong continued to say, "This strategic acquisition will strengthen our market position as a leader in the development and implementation of end to end e-Business software solutions by expanding our resources, geographic locations and industry vertical markets."

Mr. Zhongdong Zhou, President of Headware, and Co-CEO of Open EC stated, "We are really pleased to be part of a North American public company. We look forward to working with the team in Canada to grow the business in both China and North America, as well as incorporating the best practices of corporate governance from North America."

Shenzhen Jinhuaye Software System Ltd. will operate as a separate subsidiary of Open EC with its main operations and management based in Shenzhen, China.

Open EC paid $2,300,000 to acquire the shares of Fine High, paid by way of issuance of 12,000,000 common shares of Open EC at a deemed price of $0.15 per share and payment of cash consideration of $500,000. In addition to a statutory hold period, the common shares issued as consideration are subject to a contractual escrow arrangement, with 10% of such common shares released on closing and an additional 15% of the original number of common shares deposited into escrow released every 6 months over the 36 months following closing of this transaction.

In addition to the acquisition of the shares of Fine High, Open EC also acquired the right to acquire the remaining 40% of the shares of Shenzhen Jinhuaye Software System Ltd. owned by Zhongdong Zhou for $1,500,000, exercisable at any time prior to July 1, 2008.

For financial reporting purposes, the parties agreed that the financial results of both Shenzhen Headware Software System Ltd. and Shenzhen Jinhuaye Software System Ltd. would be consolidated into the financial statements of Open EC from and after July 1, 2007, and accordingly the Company will be reporting the Fine High group financial results consolidated with the Open EC financial results in its Q1 2008, ended Sept 30, 2007, financial report.

This press release is available on the Company's official on-line Investor Relations HUB at for investor questions, answers and monitored commentary. Alternatively, investors are able to e-mail all questions and correspondence to where they can also request addition to the investor e-mail list to receive all future press releases and updates in real time.

About Open EC Technologies Inc.

Open EC Technologies Inc ("OCE") is a TSX Venture Exchange listed holding company specializing in the acquisition of software companies in e-business, mobile business and business to business (b2b) commerce. Our subsidiaries, SoftCare EC Solutions, , and Headware Shenzhen Software, provide software solutions to customers throughout North America and Asia. With over 400 employees in the OpenEC Group of companies we deliver global innovative software solutions to mid market through fortune 100 companies.


Martyn A. Armstrong, President and CEO

Further information about the Company can be found on SEDAR ( or by contacting either, Mr. Martyn A. Armstrong, President & CEO of the Company or Mr. Michael Chen, CFO of the Company.

Trading in the securities of Open EC should be considered speculative. The Exchange has in no way passed upon the merits of the proposed transaction and has neither approved nor disapproved the contents of this news release.

Statements regarding financial forecasts of Headware are made by Headware, the basis for which while considered reasonable by the Company, have not been independently audited or verified by the Company. This news release may contain forward-looking statements within the meaning of The Private Securities Litigation Reform Act of 1995. Forward-looking statements address future events and conditions and therefore, involve inherent risks and uncertainties. Actual results may differ materially from those currently anticipated in such statements.

The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.

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