August 7, 2001

 

Immediate Release

 

 

Excel And Camelot Join Hands In Expanding China Market

 

 

(August 7, 2001, Hong Kong)- Excel Technology International Holdings Limited (“Excel Technology”, stock Code: 8048), is pleased to announce its co-operation with a well established Chinese IT company, Camelot Information System Inc., in expanding into the China market.

 

Excel will hold 21.5% stake of Camelot in the enlarged share capital, in which 11.3% will be by subscription for new shares of Camelot and the remaining being purchase of old shares from certain existing shareholders. The total consideration of the transaction amounts to US$2.91M, of which US$2.53M will be paid in cash and the remainder will be settled by issuance of new shares in Excel Technology at the subscription price of HK$0.95, representing a premium of 58.3% over the closing price of HK$0.60 on 7 August 2001. These shares are subject to 12-month lock-up period. Excel Technology has a right to appoint one director to the Board of Camelot for management and strategic planning.

 

Excel Technology believes the co-operation with Camelot will create synergies for the Group and provide a solid base for its China business expansion. Presently Excel Technology has two joint ventures in Shenzhen and Beijing and a software center in Shekou, together with Camelot, it shows the Group's commitment in the China market.

 

Camelot was established in 1994 to engage in the provision of technical and business system support services. Camelot is positioned to serve both major multinational corporations and large domestic enterprises in China, a market segment in which Excel Technology has set sight on as a target.

 

Camelot has a network of operations in Beijing, Nanjing, Shanghai, Guangzhou and Chengdu. Over the years, it has built a team of over 100 engineers who are experienced in software development and systems implementation. Excel Technology would tap into this pool of resources as a compliment to its existing team in China.

 

Camelot has been a profitable company since inception. It has been running on a healthy margin and is financially solid. The performance of Camelot is strong and is debt-free. In the fiscal year ended 31 December 2000, Camelot recorded a total turnover of about US$8 million with an after-tax profit of US$1.6 million. During the period from 1997 to 2000, the turnover and after-tax profit of Camelot has respectively shown a compound growth rate of over 35%. It is expected that Camelot will maintain its profitability for the years ahead and further expand its business together with Excel Technology.

 

The senior management from Camelot are returnee Chinese with U.S. academic and professional training. They exhibit similar background, vision, and management discipline with the senior management of the Group.

 

Ms. Peggy Chan, Chairman and CEO of Excel Technology, said, “Camelot is a very good company with strong management team, experienced engineers, a strong client base, and proven profit record. We believe that it will help Excel Technology to rapidly expand in the China market. Excel Technology will be able to leverage on Camelot’s existing client base and strong team of engineers to localize, sell, and implement our products to the local enterprise and multi-national operating in China.

 

Mr. Simon Ma, Chairman and CEO of Camelot, said, “We are pleased to have Excel Technology to be our partner. We share similar vision with Excel Technology and strongly believe in the future of the Group. We believe that Camelot will be able to continue to grow even larger and prosper with the support of Excel Technology. We can leverage on Excel Technology’s product base, management expertise, strong domain knowledge, and proven methodology to serve our clients. We also plan to work closely with the Group’s software center and Beijing and Shenzhen offices to provide a suite of comprehensive solutions and support to our clients by leveraging common support structure and product offerings. We are very proud to be a new member joining the Group.”



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