SOURCE: China Software Technology Group Co., Ltd.

January 26, 2007 12:08 ET

China Software Technology Group Co., Ltd. Signs LOI With Chaoyang Liaoyang Special Steel Co. Ltd.

NEW YORK, NY -- (MARKET WIRE) -- January 26, 2007 -- China Software Technology Group Co., Ltd. (OTCBB: CSWT) ("CSWT") (the "Company") has signed a Letter of Intent with American Wenshen Steel Group, Inc. ("AWSG"), a Delaware Corporation, to acquire Chaoyang Liaoyang Special Steel Co. Ltd., a company registered in the People Republic of China, that is a wholly owned subsidiary of AWSG on January 25, 2007.

The closing of the acquisition is contingent on approval from the Board of Directors of CSWT and AWSG along with the satisfactory exchange of due diligence materials between the two parties.

"We believe this reorganization will bring value to our shareholders," stated Mr. Yuanqin Li, CEO of CSWT. "AWSG is a high-tech company which produces high quality moulded and forged steel. The company is also a member company of China Die and Mould Industry Association."

"If the acquisition is consummated, we believe it will enable AWSG to access the U.S. public markets in order to further its development," stated Mr. Yang Kuidong, Chairman and CEO of Chaoyang Liaoyang Special Steel Co., Ltd. "The market demand for specialty steel and moulds has increased dramatically and there is a huge opportunity for the company to expand," added Mr. Yang.

ABOUT China Software Tech, Inc. (OTCBB: CSWT)

The Company is a holding company for Heng Xing Technology Group Development Limited, a British Virgin Islands corporation ("XHT"). XHT's sole asset is 100% of the outstanding shares of Shenzhen Hengtaifeng Technology Co., Ltd., a People's Republic of China-based corporation ("HTC") located in the Hi-tech Industrial Park in the Nanshan District, Shenzhen, China.

HTC is a provider of application software and system integration services in China. HTC develops and produces housing accumulation fund software and credit guarantee management software products. It also develops family planning and property management software and provides related system integration services. HTC entered this market in 1996 and currently has more than 110 customers in over 20 provinces throughout China.

ABOUT Chaoyang Liaoyang Special Steel Co. Ltd. (AWSG)

The company, located in Chaoyang City of Liaoning province, was registered under the law of the Republic of China. Established in October 2003, the company is a manufacturer of steel forged moulds of high-quality and high-affiliated-added-value. The company owns 5 patents in China for manufacturing high quality mould and forging steel.

Certain of the statements made herein constitute forward-looking statements that involve risks and uncertainties. In such instances, actual results could differ materially as a result of a variety of factors including the risks associated with the effect of changing economic conditions at home and abroad, variations in cash flow, reliance on collaborative retail partners, and on new product development, variations in new product and service development, risks associated with rapid technological change, and potential of introduced or undetected flaws and defects in products and services and other risk factors detailed in forms filed with the Securities and Exchange Commission from time to time.

Contact Information

  • Contact:
    Press Contact:
    For China Software Technology Group
    Peter Zhou
    212-232-0120 ext 230