ZHUHAI, China and NEW YORK, Aug.
24 /PRNewswire-Asia-FirstCall/ -- China Architectural
Engineering, Inc. ("CAE" or the "Company") (Nasdaq: CAEI), a
provider of design, engineering, fabrication and installation
services of high-end building envelope systems, today announced
that the Company has completed its acquisition of 60% ownership of
Shanghai ConnGame Network Ltd. ("ConnGame"), an MMORPG (Massively
Multiplayer Online Role Playing Game) developer and operator, in
exchange for 25 million shares of the Company's common stock. The
acquisition of ConnGame was conducted through the acquisition of a
60% ownership in New Crown Technology, Inc., ConnGame's 100%
parent.
ConnGame, founded and led by experienced management in
China's online game industry,
develops MMORPGs for operation in China. Leveraging its innovative game engines,
scalable development platforms, and accomplished production teams,
ConnGame focuses on self-developed MMORPGs game titles that are
based on China's iconic characters
and nostalgic epochs.
The Company also announced today that the Company's board of
directors has appointed Mr. Jun Tang
as a member and as the chairman of the board of directors of the
Company, effective as of the closing of the acquisition, which
occurred on August 18, 2010.
Immediately prior to the effective time of Mr. Jun Tang's appointment, Luo Ken Yi resigned as
the chairman of the board of directors, but remains a member of the
board.
Mr. Jun Tang, the new chairman of
CAE, commented, "It's my great honor to be appointed as the
chairman of the board of CAE. I am very excited about this
opportunity to return to the gaming industry and to quickly develop
and grow CAE's new business. It is my duty and goal to work closely
with my team and members of the board to build a strong management
team, strengthen our execution capabilities and further enhance our
communication with investors to grow and expand our company.
"With the completion of this acquisition, we envision CAE taking
greater advantage of our core architectural engineering and design
market, and more importantly, capturing China's large and rapidly growing online game
market. We will strengthen our business model by diversifying our
revenue stream, as well as eliminating unprofitable business
segments. I am convinced that CAE and ConnGame share a common
culture of technical excellence. Therefore, I am confident that the
integration of our businesses and technologies will drive business
growth and operational efficiency for CAE and ultimately create
higher shareholder value.
"I would also like to express my deep appreciation to the former
chairman of CAE, Mr. Luo Ken Yi, for
his dedication, professionalism and leadership during his tenure.
He has made outstanding contributions to CAE and we sincerely thank
him for his hard work, both in the past and in the future as he
continues to serve as a member of the board."
About China Architectural Engineering
China Architectural Engineering, Inc. (Nasdaq: CAEI) is a
provider of design, engineering, fabrication and installation
services of high-end curtain wall systems, roofing systems, steel
construction systems, and eco-energy systems. Founded in 1992, CAEI
has maintained its market leadership by providing timely,
high-quality, reliable, fully integrated, and cost-effective
solutions. Collaborating with world-renowned architects and
building engineers, the Company has successfully completed over one
hundred large, complex and unique projects worldwide, including
numerous award-winning landmarks across Asia's major cities.
For further information on China Architectural Engineering,
Inc., please visit http://www.caebuilding.com .
About Shanghai ConnGame
Shanghai ConnGame, founded and led by experienced management in
China's online game industry,
develops MMORPGs for operation in China. Leveraging its innovative game engines,
scalable development platforms, and accomplished production teams,
ConnGame focuses on self-developed MMORPGs game titles that are
based on China's iconic characters
and nostalgic epochs.
Forward-Looking Statements
In addition to historical information, the statements set forth
above may include forward-looking statements that may involve risk
and uncertainties that could cause actual results to differ
materially from those in the forward-looking statements. Actual
results could differ materially from the expectations contained in
forward-looking statements as a result of risks and uncertainties,
including, but not limited to, difficulties in moving into the
online gaming market; the Company's ability to integrate the
management, personnel and operations of the Company and ConnGame;
required Company payments under the waiver agreement and ability to
maintain the conditions of the bondholder waiver and dilution from
the potential adjustment to the conversion price of the bonds for
non-compliance with the waiver; identification and remediation of
the Company's deficiencies and weaknesses in its internal controls
over financial reporting, potential claims or litigation that may
result from the occurrence of restatements, ability to identify and
secure debt, equity, and/or other financing required to continue
the operations of the Company; reduction or reversal of the
Company's recorded revenue or profits due to "percentage of
completion" method of accounting and expenses; increasing
provisions for bad debt related to the Company's accounts
receivable; fluctuation and unpredictability of costs related to
our products and services; adverse capital and credit market
conditions; expenses and costs associated with its convertible
bonds, regulatory approval requirements and competitive conditions;
and various other matters, many of which are beyond our control.
These and other factors that may result in differences are
discussed in greater detail in the Company's reports and other
filings with the Securities and Exchange Commission.
For more information, please contact:
Investor Contact:
ICR:
Michael Tieu
Tel: +86-10-6599-7960
Email: michael.tieu@icrinc.com
Bill Zima
Tel: +1-203-682-8200
Email: bill.zima@icrinc.com
SOURCE China Architectural Engineering, Inc.
Copyright . 24 PR Newswire