China Mobility Solutions has entered into an agreement to acquire control of Beijing Topbiz Technology Development Company, a Chinese company providing SMS services to banks in China.

China Mobility Solutions will directly acquire 49% of Topbiz and indirectly acquire control of an additional 11% of Topbiz, giving it effective control of 60% of the company. China Mobility Solutions will pay Topbiz US$3,700,000 in cash and issue 8,081,818 new shares in a Regulation S offering at the deemed price of US$0.46.

Topbiz generated US$2.67 million in revenue in 2005, and recorded US$590,000 of deferred revenue. It made a net profit of US$785,000 in 2005, and had US$1.25 million cash-on-hand as of December 31, 2005.

Topbiz develops and customizes SMS-based banking systems for banks in China. Through the SMS banking platform Topbiz offers, banks can provide a variety of customized financial information to their client base, dramatically increase the satisfaction of clients and become more appealing to new customers.

Topbiz's SMS banking system offers convenience, security and simplicity, and is becoming popular with banking clients.

Topbiz charges its bank clients for the development and customization of the SMS banking system, and also charges an installation fee and a maintenance fee. In addition, for each SMS sent from the bank, Topbiz receives a portion of the revenue, which is shared with carriers.


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