BEIJING and SANTA CLARA, Calif., Sep. 10, 2009 (PRNewswire-Asia-FirstCall) -- AsiaInfo Holdings, Inc. (Nasdaq: ASIA) ("AsiaInfo" or the "Company"), a leading provider of telecom software solutions and IT security products and services in China, today announced it has entered into a Joint Venture Agreement (the "JV Agreement") with Alpha Growth International Pte Ltd ("AGI") to expand its core business in Southeast Asia. AGI is a Singapore-based telecommunications services company with marketing and sales expertise in Southeast Asia.
Pursuant to the JV Agreement, AsiaInfo and AGI will form a joint venture (the "JV") in Singapore. The JV will have total issued and paid-up share capital of US$4.0 million. AsiaInfo will contribute US$2.8 million to the JV in cash, which represents 70% of the JV's share capital. AGI will contribute US$1.2 million to the JV in cash, which represents 30% of the JV's share capital.
"I'm proud of the achievements we have accomplished in China's telecommunications software industry and am excited about our future collaboration abroad with AGI," said Steve Zhang, AsiaInfo's President and Chief Executive Officer. "This partnership is in line with our disciplined growth strategy as it complements our core software and IT solutions service offering and long-term vision to increase market share outside of China, particularly in Southeast Asia. Going forward, we will continue to leverage the leading market share we have garnered in China's telecommunications software industry, to explore new ways to expand our service offering, grow our business both domestically and abroad, and deliver long-term shareholder value."
Pursuant to the JV Agreement, AsiaInfo has the right to elect a majority of the JV's board of directors. In connection with the JV Agreement, the Company and the JV have also entered into certain ancillary agreements pursuant to which the JV will serve as an exclusive agent of the Company to market and distribute AsiaInfo's telecommunications software and service solutions in certain countries in Southeast Asia.
About AsiaInfo Holdings, Inc.
AsiaInfo Holdings, Inc. (NASDAQ: ASIA) is a leading provider of high-quality telecom software solutions and IT security products and services to some of China's largest enterprises as well as many small and medium sized companies in China.
