Wialan Technologies announced that it has signed a non-binding Letter of Intent with Eugene Rostov to form a jointly-owned company to continue the expansion of business into South America with a joint venture in Brazil. The new joint venture company would be 50% owned by Wialan Technologies and 50% owned by Eugene Rostov. Subject to due diligence and the subsequent signing of a definitive Joint Venture Agreement, the terms of the LOI anticipate the company will provide training for the sales, use, and installation of its products and technology.

Eugene Rostov would provide the funding and staff to sell the company's products and services in Brazil. The Wialan-Rostov partnership reflects a powerful combination of Wialan's technological leadership and the impressive potential customer network and deep customer understanding that Mr. Rostov has achieved. This new joint venture provides with an ideal opportunity to enhance Wialan's growth in an area which they believe will be a key growth market in the future.

This partnership is another step towards paving the way for Wialan to achieve the long-term vision of becoming a leading global supplier of WIFI technology.