City Network Inc. Expands Its Marketing in Japan & Korea

Date : 05/18/2004 @ 8:30AM
Source : PR Newswire
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City Network Inc. Expands Its Marketing in Japan & Korea

City Network Inc. Expands Its Marketing in Japan & Korea Company Receives Purchase Order for up to 10 Million GPS Modules

TAIPEI, Taiwan, May 18 /PRNewswire-FirstCall/ -- City Network, Inc. a company that designs, manufactures and markets a comprehensive line of broadband and wireless Internet access solutions and consumer electronic products today announced the expansion of the company's marketing initiative in the Japan and Korea markets.

To accompany the growth in perceived GPS demand, City Network is aggressively concentrating on the marketing and distribution of electronic appliances related to this trend. Recently, the company received an official purchase order of GPS modules, amounting to around 10 million modules, from Juyoung Electronics Co. in Korea.

City Network has also gained recognition as a leader in Home PNA and wireless systems and is focused on occupying a prominent position in the GPS worldwide market. The company signed a contract to provide wireless LAN service for more than 1,600 sites with Korea Life Insurance, and is the product provider for McDonald's wireless LAN setup in over 300 restaurants in Taiwan. The company believes that its current accomplishments are transporting the company into international markets with a unique commercial image and a bundle of high demand creative products.

"We are paying close attention to the worldwide GPS developing trend," said David Wang, President of City Network Inc., "the report from ABI institute estimates that this years global output value of GPS can reach at least $340 million US dollars. Currently, GPS infrastructure is the basic requirement in many countries. Under the government's request in Korea, all taxies are required to install GPS. Japan has a more aggressive method to promote the GPS system. The government of Japan provides a nationwide local map to GPS suppliers. With this advantage, these suppliers offer more complete road information as a value added service."

Mr. Wang continued, "City Network Inc. has been working together with Juyoung Electronics Co. for the past two years. The main mission for the first year was to test valued-added application products. This brought $5 million US of revenue to City Network in fiscal year 2003. So far, in 2004, Juyoung has placed an order of 50,000 units, amounting to $1.5 million US. The company anticipates that shipping volume will increase for the current year."

City Network will also focus on future product trends, including the application of GPS on car navigation, telecommunication, and tracking management. For the developing markets, City Network intends to cultivate Japan and Korea with GPS appliance modules for Logistics industries, car navigation, vehicle management systems and for the monitoring of leisure usage and communication products.

About City Network Inc.

City Network Inc. designs, manufactures and markets a comprehensive line of broadband and wireless Internet access solutions and consumer electronic products. The Company's product line ranges from the City Network HPNA device for the flourishing worldwide residential building and hospitality market to the simple DSL bridge/modem for the home and small business user. Currently, City Network Home PNA and xDSL broadband access equipment is widely deployed by major telecommunication carriers, ISPs, and System Integrators worldwide.

Safe Harbor under the Private Securities Litigation Reform Act of 1995: The statements which are not historical facts contained in this press release are forward-looking statements that involve certain risks and uncertainties including but not limited to risks associated with the uncertainty of future financial results, regulatory approval processes, the impact of competitive products or pricing, technological changes, the effect of economic conditions and other uncertainties as may be detailed in the Company's filings with the Securities and Exchange Commission. Nothing in this press release shall be construed as an offer to buy or sell any securities herein.

DATASOURCE: City Network, Inc.

CONTACT: Tim Clemensen of Rubenstein Investor Relations,

+1-212-843-9337, , for City Network, Inc.

Web site: http://www.citynetwork.com.tw/

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