BARNSTEAD, N.H. and CHONGQING, China, Dec. 3 /PRNewswire-Asia/ -- Pay88, Inc. (OTC Bulletin Board: PAYIE), announced today that it has entered into a Letter of Intent to merge with Hongmeida Enterprise Group, a privately owned investment and financial services firm located in western China.
Hongmeida Enterprise is a financial enterprise in western China, mainly engaged in raw materials investment and financial services, has a professional pawn business (mortgage finance) license in China. In 2008, the Company's annual total income was approximately RMB75,375,318.
Pay88 is one of the few companies in China capable of facilitating online banking and is also the leading reseller of internet game time in China's booming $2.75 billion online video game market, selling online multiplayer game time and prepaid cards in more than 20 cities in China.
Guo Fan, Chairman and President of Pay88, said, "While we feel Pay88 has been successful with our online gaming platforms due to ours large customer base. This Deal with Hongmeida Enterprise Group will allow us to use our payment platform and existing banking relationships in China to a much wider consumer audience." He added, "As a result of this new relationship, Qianbao Technology will have the ability to add revenue sources that have the potential to bring a great deal of revenue."
Company officials say forging this agreement with Hongmeida Enterprise Group represents a powerful step to revitalize Pay88, and position it to grow. The agreement in principle is for Pay88 to acquire Hongmeida Enterprise Group with common stock (amount not yet determined).
About Pay88, Inc.
Pay88, Inc., through its wholly-owned subsidiary, Chongqing Qianbao Technology, Ltd., is a rapidly growing digital technology company and the leading reseller of internet game time in China with over $19.7 million USD in revenues in 2008, a 134.8% increase over revenues in 2007. The company is primarily engaged in the sale of prepaid online multi-player game cards in more than 20 cities in China, an industry that generated $2.75 billion in 2008 and is expected to reach $3.8 billion by the end of 2009. In addition, the Company sells prepaid telephone cards and over 800 software products, including cooking, language and education software.
Qianbao sells its game cards through its websites, http://www.iamseller.com and http://www.17logo.com, which has more than 1 million registered users. The Company has successfully captured more than 80% of the online multi-player game time market in Chongqing, a municipality of more than 31 million people, and the third fastest-growing regional economy in China. Pay88 leverages such consumer establishments as retail kiosks and internet cafes to increase its distribution of highly popular games for an increasing number of gaming companies.
For additional information visit:
http://www.Pay88.com
http://www.iamseller.com/English/Index.aspx
Forward Looking Statements
Certain information contained in this news release, including without limitation, statements related to Pay88's outlook for 2009, which are based on management expectations, are considered forward looking statements. Investors and prospective investors are cautioned about factors which have in some cases affected Pay88's actual results and could affect its actual results and cause them to differ materially from those expressed in any such forward looking statements. Actual results may also differ due to factors over which the Company has no control including general economic and business conditions, earthquakes or effects of war or terrorists acts on the capital markets or on company activities. Please refer to Risk Factors contained in the Company's annual report on Form 10-K filed with the Securities and Exchange Commission on March 30, 2009.
For more information, please contact:
Pay88, Inc.
Tel: +86-23-6775-7997
Fax: +86-23-6775-7887
Email: China@pay88.com
