SOURCE: Dragon Venture

November 08, 2005 16:01 ET

Dragon Venture Signs Definitive Agreement to Acquire a $26 Million Information Technology Company

FORT LAUDERDALE, FL -- (MARKET WIRE) -- November 8, 2005 -- Dragon Venture (OTC: DRGV), a holding company of emerging high-tech companies in China, signed a definitive agreement to acquire a controlling interest in Shanghai Zhaoli Technology Development Company, Limited ("Zhaoli") via a stock purchase agreement. Dragon Venture will issue $500,000 worth of restricted common shares as consideration to acquire 80% of Shanghai Zhaoli Technology Development Company, Limited.

Zhaoli is an information technology enterprise providing innovative technology solutions to enhance its customers' businesses. Zhaoli generated approximately $20 million in sales for the fiscal year ending September 30, 2004. For the fiscal year 2005 ending September 30, 2005, Zhaoli generated approximately $26 million in sales. Zhaoli's customers include financial institutions, telecommunication companies, hospitals, supermarkets, airports, railway stations, and various government agencies.

Zhaoli is an authorized general agent and distributor for a wide array of manufacturers, including Epson, Cannon, Hewlett-Packard, Ricoh, Brother, Star and Samsung. Zhaoli has a wide-spread sales channel, with headquarters in Shanghai and nine additional branch locations. The locations range from an approximate 50 square foot mall location in the southwestern central business district to an approximately 330 square foot mall location near People's Square. Each of these branch locations is staffed with five to six employees. At each of the locations, Zhaoli sells laser printers, copiers, scanners, facsimile machines, multi-functional office equipment, module routers, switches, video telephones, computers supplies, and network products and network integration. Zhaoli obtains these products directly from the manufacturers. Zhaoli is also qualified as a technical service center for Epson, Canon, Hewlett-Packard and OKI products and provides equipment repair services for its customers. Zhaoli has also developed an ERS software system for enterprises to manage accounting, distribution, inventory and sales.

The acquisition will be finally closed upon a proxy vote of shareholders of the parent company of Shanghai Zhaoli Technology Company, Limited by December 15, 2005.

Wuzhang Wang, CEO of Zhaoli, commented, "We are very eager to join Dragon's high-tech family. Zhaoli can increase its ERS software and services business, leveraging the talents of the Dragon portfolio companies. Our goal is to improve our profit margin from the current level to 5% to 6% overall while we grow our revenues 30% annually to approximately $30 million in 2006 upon extra funding."

Lawrence Wang, CEO of Dragon Venture, stated, "This acquisition is proof of our commitment to increasing shareholder value. We are very fortunate to have this opportunity to work with Zhaoli. Zhaoli's financial stability should enhance shareholder value for Dragon Venture. We believe that the dynamic increases taking place in the high-tech industry in China offers Dragon Venture a tremendous growth opportunity in the coming years. Presently we are evaluating more acquisition candidates as we aggressively pursue our acquisition plan to grow our businesses to a new level."

Note: Wuzhang Wang and Lawrence Wang are not related.

About Dragon Venture

Dragon Venture ("Dragon") is doing business in China through its subsidiaries. Dragon was established to serves as a conduit between Chinese high-growth companies and Western investors. As China emerges as a growing force on the global stage, Dragon's professionals will provide invaluable services for Western investors seeking to gain access to the Chinese high-tech economy. In addition, Dragon functions as an incubator of high-tech companies in China, offering support in the critical functions of general business consulting, formation of joint ventures, access of capital, merger & acquisition, business valuation, and revenue growth strategies. Dragon will develop a portfolio of high-tech companies operating in China. Our focus will be on innovative technological applications, which are poised to alter the competitive landscape of the industry. For more information about Dragon Venture, please visit

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