SOURCE: QuadTech International, Inc.

June 05, 2006 08:00 ET

QuadTech International Successfully Demonstrates iPMine to China's Seventh-Largest Coal Mining Operation

VANCOUVER, BC -- (MARKET WIRE) -- June 5, 2006 -- QuadTech International, Inc. (OTCBB: QTII), a global provider of leading-edge Internet and IP-based technology solutions, announced today that its business development and technical teams have completed a six-day trip to China, and successfully demonstrated the company's iPMine mine-safety solution to the state-owned Shanxi Jincheng Anthracite Coal Mining Group ("Jincheng"), the seventh largest coal mining operation in China with over 50,000 employees.

The iPMine demonstration was conducted at 540 feet (165 meters) below ground in one of Jincheng's six large-scale mines, the Phoenix mine located in Jincheng city, Shanxi province with approximately 6,000 miners. The demonstration featured QuadTech's complete end-to-end iPMine solution, including mobile devices (iPMine-M8s) that can be carried by miners or attached to equipment, data network access points (iPMine-ZAPs), and related server software (iPMine-VU). The president of the Phoenix mine, its senior vice presidents, safety managers, and a number of technical staff representing various departments attended the presentation.

The trip and onsite demonstration were hosted by Shanghai Sendy Automation Technologies ("Sendy"), a subsidiary of Jincheng. QuadTech, through its technology partner iPackets International, has been in discussions with Sendy for several months to conclude an agreement that will allow Sendy to sell iPMine to Jincheng's six existing mines and two new mines projected to be in full production over the next 18 months. In addition, Sendy's customer base includes more than 1,000 customers, most of which are state-owned mining operations that have expressed interest in deploying the iPMine solution.

"The combination of technical savvy and marketing expertise in the government-owned sector of the Chinese coal industry makes Sendy the perfect partner for QuadTech," said Naiel Kanno, vice president of sales. "Sendy is well positioned to help expand our market penetration considerably."

"The Chinese coal mining industry is experiencing a series of rapid safety technology upgrades, with substantial emphasis on mine-safety," said John Meier, president and CEO of QuadTech. "With a partner such as Sendy and potential early customers like Jincheng, we believe our operations in China will result in significant revenue generation for QuadTech."

About the Mining and Mine Safety Industries in China

China comprises more than 280,000 mining enterprises, of which 80,000 are state-owned. In February 2005, the Chinese State Administration of Work Safety mandated US$6.3 billion to be spent over the subsequent three years to improve mine safety at all state-owned mines. The Chinese government also is offering all mining enterprises, whether state-owned or privately-owned, a 15 percent tax credit incentive to upgrade mine safety technologies. Mine safety has been a major issue in the Chinese mining industry, with more than 6,000 miners killed in mining-related accidents in China last year; independent estimates say the real figure could be as high as 20,000.

About Shanxi Jincheng Anthracite Coal Mining Group

The Shanxi Jincheng Anthracite Coal Mining Group ("Jincheng") is one of 13 state-owned, large-scale coal operations in China, ranking seventh in terms of production output. The parent of 22 subsidiaries employing over 50,000 people, Jincheng operates six large-scale mines and in 2005, its raw coal output was 30 million tons with revenues of $US2.2 billion. For more information, please visit www.jccoal.com (Chinese language only).

About Shanghai Sendy Automation Technologies

Shanghai Sendy Automation Technologies ("Sendy") specializes in the research and development of automation and electrical systems for the mining industry in China. Majority owned by the Shanxi Jincheng Anthracite Coal Mining Group, Sendy is headquartered in Shanghai, and maintains an ISO9001 manufacturing facility in the KunShan Development Zone in the province of JiangShu. For more information, please visit www.shsendy.com (Chinese language only).

About iPMine

iPMine is a real-time two-way wireless communications solution designed to significantly improve the safety of miners and equipment in virtually any size mine. iPMine tracks, monitors, and communicates with miners and equipment underground and above ground. Location information of both miners and equipment is collected and displayed live 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. iPMine's redundant communications feature makes the system highly reliable to efficiently operate in the harsh mining environment.

About QuadTech International, Inc.

QuadTech International, Inc. is a global provider of leading-edge Internet and IP-based technology solutions. It owns the exclusive worldwide sales and marketing rights for the iPMine System and aims to create value for its shareholders by making iPMine the leading global safety product for the mining industry. For more information, please visit www.quadtechint.com.

Legal Notice Regarding Forward-Looking Statements: Forward-looking statements in this news release are made pursuant to the safe harbor provisions of Section 21E of the Securities Exchange Act of 1934. Investors are cautioned that statements in this news release that are not strictly historical statements, including without limitation, management's plans and objectives for future operations and management's assessment of market factors, and statements regarding the strategy and plans of the company and its strategic partners, constitute forward-looking statements. These forward-looking statements are not guarantees of the company's future performance and are subject to a number of risks and uncertainties that could cause the company's actual future results to differ materially from the forward-looking statements.

Contact Information

  • Contact:
    Panascope Capital
    818-882-7722