China VoIP & Digital Telecom Inc. (OTCBB: CVDT) (the “Company”), a Nevada corporation, today announced that it has discontinued its entire VoIP business and is focusing on providing integral virtualization solutions and services in China from now on.

VoIP (Voice Over Internet Protocol) is a service that delivers voice communications over IP networks such as the Internet or other packet-switched networks. This business provides high-quality IP communication services for enterprises and government agencies with much lower fees and costs. However, the business was blocked by the Chinese Government in July 2009 due to certain political needs.

In order to shift its business focus to China’s virtualization market, the Company acquired a second subsidiary in early 2008. The new subsidiary, Beijing PowerUnique Technologies, is located in Beijing and specializes in virtualization software R&D, sale and service.

Since 2008, our integral virtualization solutions and services have obtained strong support from the Chinese governments, and we’ve had several breakthroughs in the virtualization field. Currently, our main business is to:

1. Develop and Promote Server Virtualization Technology

2. Provide Virtual Desktop Infrastructures (VDI)

3. Provide Disaster Tolerance Backup and Management Technology under Virtualization Infrastructure

4. Provide Information Technology Outsourcing services of virtualization products and technology (ITO)

5. Offer Info-security Storage Products

The Company achieved several VMware certifications including:
  • VMware Technology Alliance Partner (TAP)
  • VMware Community Source (VCS)
  • VMware Premier Partner (VPN)
  • VMware Authorized Training Center (VATC)
  • VMware Authorized Consultant (VAC)

In addition, Jinan Yinquan and BPUT are also the VIP partners with Vizioncore. They have completed the localization of Vizioncore’s software in China. Jinan Yinquan is focusing on virtualization marketing in the Shandong area. BPUT’s focus is on the large enterprise client market and also exploring markets in Sichuan, Hebei, Beijing, Tianjin and Liaoning. Cooperating with the two top virtualization vendors in the world, we provide a full range of solutions to our clients and are capable of developing new virtualization-related products based on a client’s specific needs. We also have the option to charge long-term recurring service fees for after-product sales.

Mr. Kunwu Li, CEO of the Company, said, “We have a more established customer sales and service network for virtualization, which was initiated two years ago. The network covers Shandong, Sichuan, Hebei, Liaoning, Beijing and Tianjin, and the industry coverage has extended to the government departments, power supply, petrochemistry , education, taxation, public security, healthcare and banking sectors. The Company has signed a large number of system integrators (SIs) as partners. We are always working to develop the best business model. With our new focus, we can expect greater revenues from our virtualization business than what we had from the divested VoIP operations. More importantly, the virtualization solutions we provide are in full compliance with the conservation-oriented society and Green IT concepts (energy-saving, emission abatement and environment-friendly) advocated by the country.”

Mr. Li is very confident with the virtualization market and he said that, “We believe the virtualization market in China has enormous potential and China VoIP & Telecom is already capturing that growth. We now have more than 100 employees in the two subsidiaries, and we will continue to recruit more talented people during our development.”

Mr. Li added, “We are committed to being the foremost comprehensive virtualization solution and service provider (including products, technology, service, consultation, design and implementation) rather than a mere reseller of VMware and Vizioncore’s products.”

About China VoIP & Digital Telecom Inc.

China VoIP & Digital Telecom Inc. offers virtualization technology application in the People's Republic of China through its wholly owned subsidiary, Jinan Yinquan Technology Co., Ltd and Beijing PowerUnique Technologies, Co., Ltd. Through the two subsidiaries, China VoIP & Digital Telecom is well positioned to take full advantage of the tremendous economic growth currently being experienced in China. The Company is currently marketing its integral virtualization solutions and services in China and at this time is in the testing stages of other Information Technology products. More information can be found at

About Virtualization Technology

Virtualization is a proven software technology that is rapidly transforming the IT landscape and fundamentally changing the way people compute.

Today’s powerful x86 computer hardware was originally designed to run only a single operating system and a single application, but virtualization breaks that boundary, making it possible to run multiple operating systems and multiple applications on the same computer at the same time, increasing the utilization and flexibility of hardware.

Virtualization is a technology that can benefit anyone who uses a computer, from IT professionals and Mac enthusiasts to commercial businesses and government organizations. Join the millions of people around the world who use virtualization to save time, money and energy while achieving more with the computer hardware they already own.

Safe Harbor Statement

Certain of the statements made in the press release constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements can be identified by the use of forward-looking terminology such as 'believe,' 'expect,' 'may,' 'will,' 'should,' 'project,' 'plan,' 'seek,' 'intend,' or 'anticipate' or the negative thereof or comparable terminology. Such statements typically involve risks and uncertainties and may include financial projections or information regarding our future plans, objectives or performance. Actual results could differ materially from the expectations reflected in such forward-looking statements as a result of a variety of factors, including the risks associated with the effect of changing economic conditions in The People's Republic of China, variations in cash flow, reliance on collaborative retail partners and on new product development, variations in new product development, risks associated with rapid technological change, and the potential of introduced or undetected flaws and defects in products, and other risk factors detailed in reports filed with the Securities and Exchange Commission from time to time.

Copyright Business Wire 2010