SANTA MONICA, Calif., March 8 /PRNewswire-FirstCall/ -- INNOCOM Technology Holdings, Inc. (OTC:INCM) (BULLETIN BOARD: INCM) today announced its intent to acquire 71.5% interest of Superior Precision Engineering Co. Limited ("SPE"), a Chinese company that provides manufacturing services, including: tooling design and fabrication, injection molding, spraying, printing, laser marking and sub-assembly. The parties anticipate entering a definitive agreement regarding the transaction in the near term after completion of due diligence inspections and assessments by INNOCOM. Mr. William Hui and Mr. Leng Tay, key members of SPE, are related parties to INNOCOM. Mr. William Hui, Chairman and CEO of INNOCOM said, "SPE will play a key part in our integration strategy since it serves as the cell phone components provider in the upper stream of the supply chain. In addition, INNOCOM will benefit from this integration by having better control over the product lead time, extension of business relationships with SPE's existing multinational corporation customers, greater cost/price flexibility and strengthening of design copyright protection." Improvements in Product Lead Time Currently, completion of tooling design and fabrication of an injection mold for INNOCOM takes 8-10 weeks. After the acquisition of SPE, it is anticipated the completion time will be shortened by at least 33%. Cell phones in China have become fashion products so the shortened lead times can improve INNOCOM's response time to bring product to market. Improvements in Cost Flexibility Currently, depending upon the complexity of cell phone design, a 3rd party tooling company will charge INNOCOM between $10,000 - 50,000 for an injection molding. Materials account for only a small portion of the total cost; most of the charge is attributable to the know-how of the tooling design firm. After the proposed acquisition of SPE, INNOCOM will have greater flexibility in its pricing and, as a result, should further strengthen its competitiveness. Improvements in Copyright Protection Currently, INNOCOM takes the risk that having its proprietary casing designs leaked to competitors during the tooling design stage when its uses 3rd party firms. INNOCOM can mitigate this risk after the proposed acquisition. About INNOCOM Technology Holdings, Inc. INNOCOM is a leading mobile communication technology company. They have two principal business lines; mobile phone handset design and trading of mobile phone handsets and components. INNOCOM provides customized mobile phone design services to licensed manufacturers in China. Their services include hardware system design based on chipsets such as integrated circuits sourced from external suppliers, application software design and mobile phone handset casing design. In addition to design services, the company provides sourcing of mobile phone handsets and components for customers on a wholesale basis. Company Contact: Innocom Technology Holdings, Inc. Ashley Hull (310) 450-9100 opt 1 Safe Harbor Statement Under The Private Securities Litigation Reform Act of 1995: Except for historical information contained herein, the statements in this news release are forward-looking statements that are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements involve known and unknown risks and uncertainties, which may cause a company's actual results, performance and achievement in the future to differ materially from forecasted results, performance, and achievement. These risks and uncertainties are described in the Company's periodic filings with the Securities and Exchange Commission. The Company undertakes no obligation to publicly release the result of any revisions to these forward-looking statements that may be made to reflect events or circumstances after the date hereof, or to reflect the occurrence of unanticipated events or changes in the Company's plans or expectations. DATASOURCE: INNOCOM Technology Holdings, Inc. CONTACT: Ashley Hull of Innocom Technology Holdings, Inc., +1-310-450-9100, opt. 1,

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