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Shiming Completes $400 Million Contract With Chinese Government to Build New Production Facility

^{Published on 2008-12-03 14:23:38 - Market Wire}
 

BAOJI CITY, China--([ BUSINESS WIRE ])--Shiming (OTCBB:SGUS), a Chinese consumer electronics company with 10 years of experience in high technology, today announced it has entered into a $400 million (US) joint venture agreement with the Chinese Government in Baoji City to build a new technology complex.

Shiming believes that this official partnership with the Chinese Government, combined with greatly increased 3G phone manufacturing capacity made possible through this joint venture, will make Shiming one of China's leaders in 3G phone manufacturing.

Shiming is also advising that manufacturing heavy equipment will be part of the production capacity in this new technology complex, thanks to opportunities recently created through their new partnership with the Chinese Government.

The new technology complex, to be created on 200,000 sq meters already owned by the company in Baoji, China, will have floor space dedicated to 3G hardware and accessories, solar fuel cells, silicon chips, and heavy equipment targeting the rapid growth business sectors of oil field exploration and oil field services.

Groundbreaking for the new technology complex is scheduled for late 2008. Plans and pictures of the new technology complex are available at: [ http://snshiming.ir.stockpr.com/ ]

Shiming Wang, company CEO, points out that: "The commercial 3G market currently being developed in China is government assigned, meaning three different 3G platforms have been government-issued to China's big three mobile telecoms. This differs from many countries, because the government's involvement in private industry guarantees that the companies chosen to partner with the government are assured a preferential place in China's domestic market. We believe our new partnership with the Chinese Government will not only dramatically raise our profile in China's emerging 3G market, but will also open doors previously closed to this company."

Shiming has already started producing 3G phones and accessories at their existing state of the art manufacturing plant, and has current production capacity to produce 100 million 3G phones a year. The new joint venture agreement with the Chinese Government, which includes a construction contract with the Baoji National Hi-Tech Development Company to build a new 3G phone factory, will greatly expand Shiming's manufacturing capacity and allow the company to target other areas of great demand in China. "Our new government contract and government connections are very significant to being a part of the tremendous economic growth occurring in China," states CEO Shiming Wang.

The decision of Shiming's Board of Directors to pursue the 3G phone market was based on the continuing rapid expansion of China's mobile phone customer base (at a rate of 80 million new subscribers in 2007). The total number of current mobile phone subscribers in the country is 600,000,000, and is projected to grow at even faster rates in the next 1-3 years as the entire country switches from older technology onto the newly emerging nationwide 3G networks.

"3G is an evolutionary upgrade in mobile phone technology that will soon require all of China's 600,000,000 plus users to abandon their obsolete phones in favor of new 3G hardware and software," says CEO Shiming Wang. "We are confident that our new partnership with the Chinese Government will help us compete in China's state-controlled domestic 3G market, as well as open previously unavailable new markets for our products. We believe that our new partnership with the Chinese Government will finally help us achieve our goal of growing sales, growing profits and increasing shareholder value."

About Shiming

Shiming is a consumer electronics company with a particular focus on the development and manufacture of 3G related technologies and also seeks to focus on solar energy cells, and silicon chips along with developing products for China's oil field and oil exploration business sector.

Shiming was originally formed in 1999 as Shaanxi Shiming Science & Technology Joint Stock Company Ltd., under the laws of the PRC. In November 2006, the company combined with Argenta Systems, Inc., a publicly traded company incorporated in Nevada and quoted on the OTC Bulletin Board.For more information please go to: [ http://snshiming.ir.stockpr.com/ ]