Pegasus Wireless announced the acquisition of 51% controlling interest in CNet Technology, a China-based designer and manufacturer of computer network equipment, including wireless devices.

The acquisition will be financed by a purchase of 222,222 restricted shares of Pegasus Wireless Corporation's common stock by Jasper Knabb, company's president.

The cash equivalent of $1 million will be used for the purchase of CNet Technology while the additional $1 million cash will be used to obtain raw materials to begin the manufacturing of Pegasus Wireless' products that will be available for distribution within thirty days.

The acquisition of CNet's manufacturing subsidiary will allow Pegasus Wireless to accelerate the assembly of its own products as well as goods for companies abroad, which will ultimately increase profit margins.

Previously, Pegasus Wireless has been manufacturing their wireless products through various venues around the world, and the ability to manufacture its products in a centralized environment will greatly enhance the speed and volume of their product output.