SOURCE: Buzz Technologies, Inc.

August 18, 2008 11:16 ET

Buzz in $300 Million Pre-IPO Exchange

HONG KONG--(Marketwire - August 18, 2008) - Buzz Technologies, Inc. (PINKSHEETS: BZTG), listing in Hong Kong, China, is making sound progress. And the initial Information Memorandum will be available in the coming 2 weeks. Supported by a team of highly respected accounting, insurance, finance and corporate professionals, the listing is coming together very well. We expect audits of the USA corporation to be released to market and the finalization of existing contracts exchanging ownership rights in exchange for 300,471,362 shares @ $1, (this may or may not vary from valuations of the Businesses, Intellectual Property, Property and Contracts, some of these valuations are still awaiting final appraisal) in the entity to be listed in Hong Kong. The information memorandum will contain the current business model, details of each business being operated and future prospects. The declared dividend will be paid as individuals and corporations exchange their USA equities for those in the new entity.

The introduction to the Information Memorandum flags a number of developments that have never been detailed to the public; an excerpt appears below;

Buzz has through necessity and opportunity grown into a diverse group of companies, spanning a number of industries and countries. Although on the surface it may not be immediately recognizable, the businesses are in fact tied together in one clearly defined area: they are all businesses that are technology dependent. Buzz has pioneered the way in unleashing the full potential of technology in the markets that have the least technological resources, the emerging markets of Asia.

After starting with a VoIP service and acquiring an IT firm, we set about building a search engine and accompanying ad delivery platforms. Like anyone in or entering the online search and ad business, there is one seemingly insurmountable problem. With Google having dominated Internet search and advertising for many years and continuing to grow stronger year after year, how does anyone catch up? After reviewing all of the competing services we seen an opportunity to capture the publisher market with live customer support, free web assistance and better privacy in the Asian Market. Problem solved? No. To enter the online ad market you need, apart from very advanced technology, 2 distinct groups of customers, publishers who will display your online ads, and advertisers who will buy that ad space. As you cannot sell ad space you do not have, you must first acquire the publishers as clients, Problem solved? Still, no. A further and much more difficult barrier to entering the search and online ad market is that you must first acquire those publishers, after the publishers are using your ad and search services you must be able to fill those ads with revenue producing product or be happy to accept massive cash outflows while you hunt for advertisers. This is where necessity played its part in building Buzz.

Rather than turn our backs on one of the world's most lucrative businesses, that of online ads and search, we decided to select a single market, in our case Thailand, build the businesses and form alliances to fill the ad space prior to the commencement of our search and online ad network. After study of the local market we decided that to fill the online ad space and make a very high return on investment we needed a number of businesses, Real Estate, Travel and Financial Services, the 3 key core businesses that provided revenue from online ads. The best of the 3 businesses by far was Real Estate. With 80% of the world's property sales being leads generated online, we chose that business to invest in and grow ourselves. For Travel, we partnered with Expedia and for Financial Services initially with EasyForex and subsequently Maritime Securities in the Bahamas.

When we launched the service in May 2008, we quickly signed The Bangkok Post and the search and online ad network has continued to grow since then. Our Property Division, One-2-Property has seen enormous growth fueled by occupying Thailand's most sought after online ad space, as have Travel and Financial Services. Our returns on the ad network exceed all our competition in the local market because of our own innovation and careful planning.

The ad network has now expanded into China with Travel and Financial services being well received. Our market in China comprises mostly Internet cafes with a male audience of 15 to 25, this required a rethink of the Thailand model and through Amazon and other MMORPG supplier, we have built a successful games distribution network providing not only sales but income from recurring monthly fees. To further cement our place in these cafes we have also made available VoIP and other services available at the counter. We deferred other publisher deals in Hong Kong and China until we have opened our Real Estate offices there later this year.

That brings us to opportunity, what we did see in Asia and around the world were the many start-up companies looking to raise funds. They were all or in-part to build, develop or buy technology, and Buzz having access to the best and cheapest IT talent in the world, this was a natural fit. It cut out almost all downtime and generated a constant stream of work, making us, and our contractors very busy and substantially more profitable. Thus was born Buzz Venture Capital. Buzz Venture Capital brings together a unique offering, IT Services, Marketing, Property and Financial Services all under one roof. We have built a wide and substantial portfolio of investments in companies at different stages of development. Our early entry and deal structure have created a very secure high value asset for the company.

About Buzz

Buzz Technologies, Inc. is a convergent media company with operations ranging from infrastructure development to online retail.

The foregoing press release contains forward-looking statements based on the Company's beliefs as well as assumptions made by and information currently available to the Company, including statements regarding the timing of the introduction of certain products. These forward-looking statements are based largely on the Company's expectations and are subject to a number of risks and uncertainties which are identified and described in the Company's registration statements and periodic reports on file with the SEC, some of which are beyond the Company's control. Actual results could differ materially from these forward-looking statements as a result of a variety of factors including, among others, issues related to the travel and transportation industries, and prevailing economic conditions in general. In light of these risks and uncertainties, or should underlying assumptions prove incorrect, there can be no assurance that the forward-looking statements contained in this press release will in fact transpire or prove to be accurate.

Contact Information

  • Contact:
    Beth Simpson
    Buzz Technologies, Inc
    Tel: +66 87 272 1727