An American company has signed a deal to place retail photo kiosks in Chinese Internet cafes.

Northport Capital's Chinese subsidiary has signed an agreement with China Netcom for supply and operation of a total of 564 of Northport's Colorstar digital photo processing kiosk units. Three hundred Colorstar units will be installed in netcafe locations in Liaoning province that are supplied with ADSL connections from China Netcom. A further 264 units are to be installed in CNC retail locations in the province.

Revenues are split 15% to CNC and 85% to Northport with Northport paying monthly fees for Colorstar unit ADSL connections as well as a service cost. The agreement runs for two years after which the parties have the option to extend the agreement further. Ownership of the kiosk units remains with Northport.

Colorstar kiosks have been developed as a platform which allows the units to also provide a wide range of other features and capabilities including bill payment, ticket purchasing, and a host of Internet access features including MP3 downloads. Northport expects that this will be the first of a number of significant contract agreements for Colorstar kiosk units that they will sign with large Asian partners.

Colorstar's stand alone, digital photo processing kiosk units are connected to a central server online which allows Northport to access information on activity, supplies status and maintenance requirements for each individual unit. Users can view and print photo quality pictures from their digital camera chips, cellular telephone chips, memory sticks and CD disk storage. Payments can be made by way of credit and bank card or by cash. Access, photo selection, production and payment are all self contained features in each kiosk unit, thus allowing Colorstar units to be installed in any high traffic location.

Northport Capital is a U.S. company with business operations in Dalian.