SOURCE: Orsus Xelent Technologies, Inc.

August 27, 2007 10:30 ET

Orsus Xelent Signs Letter of Intent to Acquire Majority of Hebei Province Handset Designer and Manufacturer

Aims to Achieve Internal Production Capacity of More Than One Million Self Branded and OEM Units Annually

NEW YORK, NY--(Marketwire - August 27, 2007) - Orsus Xelent Technologies, Inc. (AMEX: ORS), a designer and manufacturer of award-winning mobile phones for the Asian market, today announced that, with the aim of establishing a production base for ORS self branded mobile phones as well as OEM production for others, it has signed a Letter of Intent to acquire 60% of the shares of Hebei Lemon Times Communications Equipment Manufacturing Co. Ltd (the "Lemon Times") in Hebei Province for an undisclosed amount of cash and stock. The Company said it hopes to complete the acquisition within an agreed timeframe upon the successful completion of audits and additional due diligence.

According to the Company, "Lemon Times" is a private limited liability company incorporated under PRC laws with registered capital of 200 million RMB (approximately $26.4 million USD). It has a 5,000-square-meter electronics factory on approximately 64,000 square meters of land that includes two complete SMT product lines which can produce feature-rich mobile units and other electronic products, as well as four EOL product lines available for assembly, testing and packaging. It also currently employs more than 100 skilled technical staff and has achieved electronic information industry ISO 9000 Quality Management System Certification. Within the next six months, it also expects to achieve OHSAS18000 and ISO14001 certification.

According to Xavier Wang, CEO and president of Orsus, "Upon successful completion of the acquisition, 'Lemon Times,' under ORS management and control, will have a Research and Development Center and the ability to design an entire mobile unit in addition to its production and distribution capacity for communications equipment. This will give ORS the ability to produce and design its own brands -- including those utilizing TDS CDMA -- as well as to handle OEM production for others."

Mr. Wang added, "We think that by the year end we will be positioned for production capacity of more than one million units annually. For 2007, we expect a limited dilutive effect on earnings as this production begins to develop and in 2008 expect to begin to realize the full benefits and cost savings that can be derived from the manufacturing and creation of our own new brands and services in China. We also will be in a much stronger position to successfully participate in China's upcoming 3G market."

About Orsus Xelent Technologies, Inc.

Incorporated in the State of Delaware and headquartered in Beijing, China, Orsus Xelent Technologies, Inc. is an emerging designer and manufacturer of award-winning mobile phones for the Asian market, primarily the People's Republic of China (PRC). The Company's business encompasses the design of mobile phones, related digital circuits, and software development, and it is a recognized pioneer in mobile phone integration technology. It introduced the region's first wristwatch-style cellular phone, and it continues to break new ground with state-of-the-art phones that include advanced features such as finger print recognition and touch-screen displays. Increasingly, the Company is focused on developing and marketing, under its Proxlink trademark, special application mobile phones for specialized users in a wide variety of professions in business and government. Since the Company's launch in 2004, it has established "Orsus" as a popular brand and achieved a significant share of the world's largest mobile phone market. It maintains more than 179 service call centers across the PRC, with additional offices in New York, Shanghai, Hong Kong, Shenzhen, and Tianjin. For more information, please visit the Company's web site: www.orsus-xelent.com.

Information Regarding Forward-Looking Statements

Except for historical information contained herein, the statements in this Press Release are forward-looking statements that are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements involve known and unknown risks and uncertainties, which may cause our actual results in future periods to differ materially from forecasted results. These risks and uncertainties include, among other things, product demand, market competition, and risks inherent in our operations. These and other risks are described in our filings with the Securities and Exchange Commission.

Contact Information

  • CONTACT:

    Orsus Xelent Technologies, Inc.
    Xavier Xin Wang
    President & CEO

    PRC:
    Tel 010-85653777
    Fax 010-85653666

    US:
    Investors
    Tel: 212-719-7535
    Fax: 212-790-9594

    Press:
    Tel: 212 425 5700
    Fax: 212 425 6951