SOURCE: iPackets International, Inc.

January 16, 2007 09:45 ET

iPackets Announces the Signing of Its Chinese Joint Venture Agreement

VANCOUVER, BC -- (MARKET WIRE) -- January 16, 2007 -- iPackets International, Inc. ("iPackets") (PINKSHEETS: IPKL), a developer and provider of wireless communications software and equipment for the mining industry, announced today the signing and completion of its Chinese Joint Venture ("JV") agreement with Henan YongAn Investment Guarantee Co., Ltd. ("YongAn"), and China Coal Information Institute ("CCII"). The JV will operate under the name GuoAn Mine Safety Communication System, Inc. ("GuoAn").

GuoAn will be responsible for the manufacturing, distribution, sales, marketing, installation, deployment, and support of iPackets' iPMine solution to the mining industry in China. The operation will be based in the Province of Henan, China's second largest coal producing province.

GuoAn's initial registered capital will be $12 million with an option to be increased to up to $30 million. YongAn will contribute $7.2 million for 60% of GuoAn, CCII will contribute $1.2 million for 10% of GuoAn, and iPackets will contribute its iPMine intellectual property, technology, and know how for 30% of GuoAn valued at $3.6 million. GuoAn will be fully supported by the government of the Province of Henan through its contribution of over two acres (10,000 square meters) of land to build and outfit a world-class manufacturing facility in Jiaozuo City, Henan, China.

iPackets' President and CEO, Mr. Naiel Kanno, commented: "This is a major accomplishment for iPackets. China is one of our most important international markets, and the creation of GuoAn is crucial to our growth strategy. We will move forward quickly with sales and marketing activities to capture a significant share of the mine-safety market in China."

YongAn's Chairman, Mr. Sun Yulin, commented: "The JV agreement represents a significant milestone for YongAn's strategy of focusing on the mine-safety industry in China. After considerable research of mine-safety technologies, we are pleased to have selected iPackets as a partner with their true 2-way wireless mine-safety monitoring and tracking system."

CCII's President, Dr. Shengchu Huang, commented: "In February 2006, we established our working relationship with iPackets and we've always believed that their mine-safety technology is superior. We are pleased to have contributed by introducing YongAn to iPackets. We are confident that the new JV will expedite the entry of the iPMine technology into the mine safety in China."

About the Mining and Mine Safety Industries in China

There are more than 280,000 mining enterprises in China, 80,000 of which are state-owned. Of the state-owned mines, more than 700 are classified as large mines, which will soon face Chinese government mine safety regulations. Mine safety has been a major issue with more than 6,000 miners killed in China last year although independent estimates the real figure could be as high as 20,000 miners killed. According to Chinese government statistics, more than 12.2 million people were employed as miners in 2005, and approximately 7.0 million of these were coal miners.

About The Chinese Joint Venture Partners:

Henan YongAn Investment Guarantee Co., Ltd.

YongAn is one of the first investment guarantee companies to be approved by the Chinese National Development and Reform Commission. With more than 55 employees, YongAn's business scope is finance, investment and debenture guarantee, financial services and consultation related to investments in small- to medium-sized enterprises.

China Coal Information Institute ("CCII"): Established in 1959 by the Chinese government, CCII is a national research organization with more than 800 employees. CCII is part of the newly established National Institute for Occupational Safety and has played a leading role in the development of China's domestic coal industry and related occupational safety standards. CCII provides information support and strategic suggestions to government authorities; undertakes market investigations and provides consulting services to Chinese and international companies to expand their business in the areas of energy, safety, environment, and information technology. For more information, visit www.coalinfo.net.cn/english.htm.

About iPackets International, Inc. and iPMine

iPackets International is a developer and provider of wireless communications software and equipment for the global mine-safety industry. iPMine, the company's flagship product designed to significantly improve the safety of miners and equipment, is a real-time two-way wireless communications solution that tracks, monitors, and communicates with miners and equipment underground and above ground. With iPMine, location information of both miners and equipment is collected and displayed on one or more monitoring stations against a background of a mine's terrain map. iPMine's scalability and flexibility features make it ideal to be deployed in any size mine supporting multiple levels and/or sites. Its redundant communications feature makes the system highly reliable to efficiently operate in the harsh mining environment. For more information, visit www.ipackets.com.

Certain statements included in this press release may constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements relate to, among other things, plans and timing for the introduction or enhancement of our services and products, statements about future market conditions, supply and demand conditions, and other expectations, intentions and plans contained in this press release that are not historical fact and involve risks and uncertainties. Our expectations regarding future revenues depend upon our ability to develop and supply products and services that meet defined specifications. When used in this press release, the words "plan," "expect," "believe," and similar expressions generally identify forward-looking statements. These statements reflect our current expectations.

Contact Information

  • Contact:
    Allegiant Financial Group
    1 (604) 669-8098