Open EC Technologies, Inc.
TSX VENTURE : OCE
OTC Bulletin Board : OCEIF

Open EC Technologies, Inc.

July 17, 2007 15:58 ET

Open EC Technologies, Inc. Receives TSX-V Conditional Acceptance of the Share Purchase Agreement to Acquire Fine High Group Ltd. and Its China-Based Subsidiary Shenzhen Jinhuaye Software Ltd

NORTH VANCOUVER, BRITISH COLUMBIA--(Marketwire - July 17, 2007) - Open EC Technologies, Inc. ("Open EC" or the "Company") (TSX VENTURE:OCE) (OTCBB:OCEIF) is pleased to announce that it has received conditional acceptance from the TSX Venture Exchange to acquire Fine High Group Ltd. ("Fine High", a British Virgin Island company) and its subsidiaries, Headware Shenzhen Ltd. and Shenzhen Jinhuaye Software Ltd. (both incorporated in the People's Republic of China), as formerly announced on June 25, 2007.

Final acceptance of the transaction will be conditional upon the Company satisfying the filing requirements as outlined in policy 5.3 Section 5, of the TSX Corporate Finance Manual.

About Fine High Group Ltd.

Fine High Group Ltd. is a holding company incorporated in the British Virgin Islands. Its sole asset is a wholly owned subsidiary, Headware Shenzhen Ltd. which is incorporated and registered in the People's Republic of China ("PRC"), as a wholly owned foreign enterprise. Headware Shenzhen Ltd. has 60% ownership in Shenzhen Jinhuaye Software Ltd.; a Shenzhen PRC based operating company in the software development business.

About Shenzhen Jinhuaye Software Ltd. & Headware Shenzhen Ltd. (together "Headware")

Headware is a software development company specializing in the Telecom/Wireless Industry with projects in China, Indonesia and the Philippines. The companies have approximately 390 employees of whom most are technical and software development people. Headware's sales and marketing comes from strategic partners who develop business specifically for the companies' products and services. Because of this marketing model, Headware enjoys a good profit margin and steady growth. Headware's main business partners are large multi-national systems integrators and software providers that have developed a large and growing market share both inside China and abroad.

The CEO of Headware has reported that their group's calendar 2006 audited revenue is $1,783,298 with an EBITDA (Earnings before Interest, Taxes, Depreciation and Amortization) of $460,112. Headware forecasts the calendar 2007 revenue to be approximately $4.2 million with an EBITDA of $1.4 million (1). Headware's strategic customers, Huawei Technology Co Ltd. and Aspire Technology Group are two of the leading mobile operator technology and software providers in China. Huawei, based in Shenzhen, China reported 2006 sales of $11 billion US$ and its customers include 31 of the world's top 50 telecom operators including Vodafone, BT, Telefonica and FT/Orange and China Mobile. Aspire Group is the result of a joint investment between China Mobile, Merrill Lynch, HP and Vodafone. The company is a leader in the research & development of software products for information management and portal solutions designed for mobile operators.

Headware projects under contract with Huawei and Aspire include; China Telecom, China Mobile, China Unicom, Indonesia Telkomsel Corp., Indonesia Primasel Corp., Pakistan Telecom and Philippine Telecom. Additional company and product information is available on the Headware website at www.headware.cn/English.asp or can be accessed from the Open EC web site at www.openec.com.

About Open EC Technologies Inc.

Open EC is a TSX Venture Exchange listed company. Its subsidiary, SoftCare EC Solutions Inc., is an e-business software and solution provider. SoftCare's Open EC® e-business software includes solutions for Electronic Data Interchange (EDI), Business Process Management and Product Information Management (PIM). The Company sells the Open EC® products and solutions to the retail supply chain, healthcare, financial services and government agencies in North America. Additional product and solution information is available on the web at www.softcare.com and additional public company information is available on the web at www.openec.com. The Company's common shares trade on the TSX Venture Exchange under the symbol: OCE.

ON BEHALF OF THE BOARD

Martyn A. Armstrong, President and CEO

Further information about the Company can be found on SEDAR (www.sedar.com).

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.

(1) 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.

Contact Information

  • Open EC Technologies, Inc.
    Martyn A. Armstrong
    President and CEO
    (604) 983-8083
    or
    Open EC Technologies, Inc.
    Mr. John A. Versfelt
    CFO and a Director
    (604) 983-8083
    (604) 983-8056 (FAX)
    Email:investors@softcare.com
    Website: www.openec.com