HONG KONG, April 29, 2010 (GLOBE NEWSWIRE) -- China Technology Development Group Corporation ("CTDC" or the "Company") (Nasdaq:CTDC) is pleased to announce that CTDC has entered into a Cooperation Framework Agreement (the "Agreement") with Xintang Media Technology (Beijing) Ltd. ("Xintang Media"), shareholders of Xintang Media and the related companies to acquire Xintang Media indirectly. Xintang Media is a media and advertising agency company. CTDC will jointly develop the Xinhua Multimedia Project with Xintang Media and Xinhua News Agency.
Xinhua Multimedia is an information platform with flat-panel displays to be installed in government office buildings, elementary/high schools and public areas in China, through which Xinhua News Agency disseminates news and information in various formats.
According to the Agreement, CTDC will indirectly acquire (or in other controlling ways) the equity interests in Xintang Media, which will be settled by cash, CTDC shares and warrants with advance payment of US$5 million. The payment will be used for purchasing displays and developing the advertising business.According to the Framework Agreement signed between Xintang Media and Xinhua News Info Centre in January 2010, Xintang Media is the sole exclusive advertising agent of Xinhua Multimedia Government Broadcast Network ("Government Network") and entitled to the exclusive operation rights of other value-added businesses, as well as to the right of first refusal to make investments in other sub-projects of Xinhua Multimedia. Government Network has completed the pilot installation of flat-panel displays in Guangdong, Guizhou and Heilongjiang provinces. In addition, Xintang Media, Xinhua News Info Centre and eight provincial branches (Guangdong, Guangxi, Shandong, Fujian, Guizhou, Anhui, Heilongjiang and Jiangxi) of Xinhua News Info Centre entered into the Exclusive Sub-agreements of Government Network ("Sub-agreement") on April 28, which further established Xintang Media's exclusive role as the advertising agent of Government Network and in operating other value-added businesses in these geographical areas. Xintang Media will continue to enter into agreements with other provincial branches of Xinhua News Info Centre.