Primix Announces Joint Venture/License Agreement
June 10 2005 - 9:30PM
Business Wire
Primix Corporation (NASDAQ OTC:PMXX) developer and manufacturer of
the "Primix Tie" is delighted to announce that a Joint
Venture/License Agreement between Primix Corporation and Qingdao
Maple Leaf Environmental Technologies, Inc. (QMLET) was finalized
and signed on April 28th, 2005. This agreement allows QMLET to
produce the "Primix Tie" exclusively in China. This contract was
signed pursuant to The State Intellectual Property Office of the
Peoples Republic of China allowing the Primix patent for a
composite railroad crosstie. Primix filed a patent application in
China on November 12, 1999 based on its US patent application. This
application was published in the Chinese Patent Gazette for
Invention, Volume 18, Issue Number 4. The application was granted
on December 24, 2004. The Chinese Patent Certificate will be issued
about June 8, 2005. This much anticipated development has been a
major hurdle in the signing of a Joint Venture/License Agreement
with Qingdao Maple Leaf Environmental Technologies, Inc. Extensive
time was needed to finalize all the terms and conditions for this
dramatic new joint venture. The basics of the Joint Venture/License
agreement provides for a per crosstie royalty and a 25% equity
interest of QMLET by Primix Corporation, making Primix one of the
"only" composite crossties licensed in China. Mr. Yuan Qiang,
President/CEO of Qingdao Maple Leaf Environmental Technologies,
Inc., projects, "The Primix China plant will be in production by
September 15, 2005. It is anticipated that production should reach
500,000 crossties within six months and 1,000,000 crossties by
September 15, 2006." The Primix China plant is a new 60-acre
complex complete with a 70,000 sq. ft. production facility,
including a three-story office complex, a warehouse, two
engineering buildings, a canteen, and multiple three-story
buildings to house employees. The production capability of this new
plant is 2,000,000 crossties/sleepers per year. China is one of the
world's fastest growing economies. According to the China Railways
Magazine Number 2/2000, China planned to invest 50 billion annually
in railway construction from 2000 to 2005. In 2000, China had
70,057 total km (43,531 miles) of track by 2003 this had increased
to 73,002 km (45,361 miles) an increase of 6% over a three year
period. By 2020, China has the ambitious goal of adding 28,000 km
(17,398 miles) of railways. In the last 30 years China's total rail
has increased by 33%. The anticipated need for new crossties in
China for the next few years is close to 90,000,000 crossties. This
press release contains forward-looking statements identified by
words such as "believe," "expect," "anticipates" and similar
expressions. Actual results might differ materially from those
projected in, expressed in or implied by the forward-looking
statements. Primix Corporation cautions investors not to place
undue reliance on forward-looking statements, which speak only as
to management's expectations on this date. Some paragraphs of this
press release, particularly those describing Primix's strategies,
operating expenses reductions and business plans, contain
forward-looking statements within the meaning of Section 27A of the
Securities Act of 1993, as amended and Securities Act of 1933, as
amended, and Section 21E of the Securities Exchange Act of 1934, as
amended. While Primix is working to achieve those goals, actual
results could differ materially from those projected in the
forward-looking statements as a result of a number of factors,
including difficulties in marketing its products and services, need
for capital, competition from other companies and other actors, any
of which could have an adverse effect on the business plans of
Primix, its reputation in the industry or its expected financial
return from operations. Factors such as these could have an adverse
effect on Primix's results of operations. In light of significant
uncertainties not included in the forward-looking statements
herein, the inclusion of such information should not be regarded as
a representation by Primix that it will be achieved.
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