SHENZHEN, China, Jan. 26 /PRNewswire-Asia-FirstCall/ -- Universal Travel
Group (NYSE: UTA) ("Universal Travel Group" or the "Company"), a leading
travel services provider in China offering package tours, air ticketing, and
hotel reservation services via the Internet and customer service
representatives, announced today that it has entered into a Letter of Intent
to acquire Zhengzhou Yulongkang Travel Service Company ("Zhengzhou Yulongkang")
for RMB 39 million (approximately $5.7 million), 90% of which to be paid in
cash and 10% of the purchase consideration in shares of the Company's common
stock. The purchase consideration may be subject to adjustment after the
completion of acquisition audit on Zhengzhou Yulongkang by the Company.
Zhengzhou Yulongkang was founded in 2000 in Zhengzhou, Henan Province.
Zhengzhou Yulongkang has a team of experienced and knowledgeable tour guides
that take tourists on more than ten proprietary regional routes and hundreds
of points of interest. Zhengzhou Yulongkang is a one-stop shop, providing
comprehensive travel services and maintaining long-term cooperation with
transportation agents, travel destinations, hotels, and air ticket agencies.
In addition, Zhengzhou Yulongkang has developed outdoor team building programs
in 2004 based on its chosen travel destination, Wengcheng Waterfall. Unaudited
2009 revenue and net income will be about $10.5 million and $0.86 million,
respectively.
"Our recent acquisitions of travel service providers of national tourist
destinations demonstrate our commitment to expand into domestic travel markets
and raise awareness of our Company and the services we provide in these
targetted regions. Zhengzhou Yulongkang's addition will further enhance
Universal Travel Group's core business segments and complement our packaged
tour business," said Ms. Jiangping Jiang, Chairwoman and Chief Executive
Officer. "Through these acquisitions, we will strengthen our product portfolio,
geographic coverage and brand awareness to build a larger network of customers.
We believe we are strategically positioned to be in the forefront of the
rising China travel market."
About Zhengzhou Yulongkang Travel Service Company
Zhengzhou Yulongkang Travel Service Company was established in 2000 in
Zhengzhou, Henan Province of China. The company currently has a management
team of 25 people and over 60 tour organizers and guides. The Company provides
comprehensive travel services and maintains long-term cooperation relations
with transportation agents, travel destinations, hotels, and air ticket
agencies. Its regional tour routes include "Charming Tibet," "Winter Hot
Spring," "Passion Ski Trip," etc. Zhengzhou Yulongkang Travel Service Company
has received a series of industry and corporate awards from 2003 - 2006.
About Universal Travel Group
Universal Travel Group is a leading travel service provider in China
offering packaged tours, air ticketing, and hotel reservation services via the
Internet and customer service representatives. The Company also operates
TRIPEASY Kiosks, which are placed in shopping malls, office buildings,
residential apartment buildings, and tourist sites. These kiosks are designed
for travel booking with credit and bank cards, and serve as an advertising
platform for Universal Travel Group. The Company's headquarters and main base
of operations is located in Shenzhen in the Pearl River Delta region of China.
More recently, Universal Travel Group has expanded its business into Western
China, opening a second home base in the Chongqing Delta region, and other
attractive, under-penetrated tier-two travel markets throughout the country.
For more information on the Company, please visit http://us.cnutg.com .
Safe Harbor Statement under the Private Securities Litigation Reform Act
of 1995
This press release contains certain statements that may include
"forward-looking statements" within the meaning of federal securities laws.
All statements, other than statements of historical facts, included herein are
"forward-looking statements." Although the Company believes that the
expectations reflected in these forward-looking statements are reasonable,
they do involve assumptions, risks and uncertainties, and these expectations
may prove to be incorrect. Investors should not place undue reliance on these
forward-looking statements, which speak only as of the date of this press
release. The Company's actual results could differ materially from those
anticipated in these forward-looking statements as a result of a variety of
factors, including the Company's ability to successfully expand its market
presence and those discussed in the Company's periodic reports that are filed
with and available from the Securities and Exchange Commission. All
forward-looking statements attributable to the Company or persons acting on
its behalf are expressly qualified in their entirety by these factors. Other
than as required under the securities laws, the Company does not assume a duty
to update these forward-looking statements.
For more information, please contact:
Company Contact:
Universal Travel Group
Mr. Jing Xie
Secretary of Board and Vice President
Phone: +86-755-8366-8489
Email: 06@cnutg.cn
Web: http://us.cnutg.com
Investor Relations Contact:
CCG Investor Relations
Mr. Athan Dounis, Account Manager
Phone: +1-646-213-1916
Email: athan.dounis@ccgir.com
Mr. Crocker Coulson, President
Phone: +1-646-213-1915
Email: crocker.coulson@ccgir.com
Website: http://www.ccgirasia.com
SOURCE Universal Travel Group