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TechnoConcepts' Shanghai Subsidiary Approved; Company Expects IPTV Set-Top Box Orders to Exceed $15 Million This YearVAN NUYS, Calif. --(Business Wire)-- March 27, 2006 -- TechnoConcepts Inc. (OTCBB:TCPS) announced today that it has received conditional approval from the Chinese Government for the formation of the company's subsidiary China Jinshilin Techno Ltd. ("CJT") in Shanghai. TechnoConcepts has established this subsidiary to provide marketing, sales and technical support for its True Software Radio(R) technology in China. CJT will also design, market, distribute, and provide technical support for Internet Protocol TV set-top boxes ("IPTV-STB"). The subsidiary anticipates shipping more than 100,000 units by the end of 2006, generating revenues in excess of US$15 million. CJT is acquiring the set-top box business from Shanghai Jinshilin Technologies Development Company Ltd. ("Jinshilin") under an agreement made in June 2005. The acquisition is expected to close in April 2006. The set-top boxes will initially be sold as OEM products in China, Taiwan and Japan under a private label by Alcatel Network Support System Company, Inc. ("Alcatel"). Jinshilin's set top box design was selected by Alcatel after testing prototypes and evaluating numerous alternatives. A recent technical evaluation by Alcatel of products for this market determined that Jinshilin's IPTV-STB is fully compliant with existing specifications for both the Chinese and European market. Jinshilin's IPTV-STB has also been added to the global procurement system of Alcatel Group for availability in the European IPTV market, where Alcatel Group currently has a 60% share. TechnoConcepts and Jinshilin had been collaborating on this project over the past year. IPTV set-top boxes provide for delivery of digital television programming received from the Internet to conventional audio/video inputs to television sets. The IPTV set-top box market is rapidly expanding in China, with industry analysts projecting between 20 million to 50 million units to be sold in 2006, growing to 60 million to 100 million units to be sold by the end of 2007. Commenting on the new subsidiary, Antonio Turgeon, CEO and Chairman of TechnoConcepts, said: "The Chinese market is migrating to next-generation TVs, DVD players, and other media devices that utilize wireless connectivity to the set-top box. We plan for our Shanghai subsidiary to offer next-generation IPTV set-top boxes in Asia that will support multi-protocol wireless connectivity with television, DVD players and other multi-media appliances by integrating TechnoConcepts' proprietary True Software Radio(R) technology with the winning Jinshilin design." About China Jinshilin Techno Ltd. China Jinshlin Techno Ltd. ("CJT") is TechnoConcepts' subsidiary based in Shanghai, China, providing marketing, sales and technical support for True Software Radio(R) technology in China. The company is also acquiring IPTV Set Top Box technology through license agreements with Jinshilin Technologies Development Company Ltd., a technology company specializing in research, development and applications of video and audio technology and embedding technology ("Jinshilin"). The company is also acquiring all of Jinshilin's intellectual property, including its pending patent applications. CJT will continue to develop new technology and apply for new patents for Internet Television (IPTV), Stream Media Protocol Processing, and Broadcasting Software for IPTV-STB, IPTV-STB providing On-Line Family Real Time Payment Service, as well as others. About TechnoConcepts TechnoConcepts Inc. (OTCBB:TCPS) designs, develops and markets semiconductors. The Company has developed and patented True Software Radio(R), a demonstrated technology that creates convergence for the wireless industry. True Software Radio(R) can enable cell phones, PDAs, laptops, and other mobile devices with different wireless frequencies, standards, and protocols to communicate directly with each other, across otherwise incompatible networks. When deployed, systems incorporating this technology can also provide cost-effective communications interoperability among police, fire departments and other emergency services, enabling them to talk to each other regardless of their different radio systems. TechnoConcepts believes that True Software Radio(R) is the only software-controlled wireless technology that has been verified to operate continuously across multiple frequency bands. More information is available at http://www.technoconcepts.com. Safe Harbor Statement under the Private Litigation Reform Act of 1996: Forward-looking statements in this release do not constitute guarantees of future performance. Such forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially from those anticipated. Such statements may relate, among other things, to the company's expected financial and operating results, the expected acceptance of the company's products, the usefulness and benefits of the company's products generally, the acceptance of its technological solutions, and the company's ability to achieve its goals and objectives. The risks and uncertainties that may affect forward-looking statements include, among others: difficulty providing product solutions that meet the needs of customers, difficulty in developing new products, difficulty in relationships with vendors and partners, difficulty in introducing products to the marketplace and gaining acceptance of the same, difficulty gaining necessary governmental approvals, difficulty facing the intense competition present in the wireless communications industry, the company's limited operating history, its inexperience in operating internationally and difficulty managing rapid growth. For a more detailed discussion of the risks and uncertainties of the company's business, please refer to its Annual Report on Form 10K for the fiscal year ended September 30, 2005, filed with the Securities and Exchange Commission, and as subsequently amended. The company assumes no obligation to update any forward-looking information contained in this press release or with respect to the announcements described herein. |
