VANCOUVER, BRITISH COLUMBIA--(Marketwire - Feb. 24, 2009) - Yangtze Telecom Corp. (TSX VENTURE:SMS) ("Yangtze") announces that it has entered into an agreement (the "Reversal Agreement") with China Poly Group Limited ("China Poly"), a Hong Kong entity, that has the effect of reversing and cancelling the acquisition of a 95% equity interest in Hunchun VAS Company Limited ("HCVAS") from Poly China pursuant to a share exchange agreement (the "SEA") announced on December 3, 2007 and closed in April, 2008. China Poly has returned for cancellation the share certificates initially issued to China Poly representing an aggregate 10 million common shares in the capital of Yangtze. No additional shares, earn-out or otherwise, were issued by Yangtze in connection with the SEA. The Reversal Agreement became necessary as receivables from HCVAS could not be crystallized. The effect of the Reversal Agreement will be reflected in Yangtze's year end audited financial results for the period ended December 31, 2008 which are due to be filed by the end of April.
Also in connection with the Reversal Agreement, Xiaomeng Zhang and Chunqiu Wu have resigned from the Board of Directors of Yangtze, and Kevin He and Dong Li have been appointed to the Yangtze Board of Directors in their place and stead. Mr. He is the Chief Executive Officer of Yangtze.
Mr. Li brings to the Board of Yangtze extensive experience in telecommunications & the IT industry, and he is also expected to be a source of prospective business acquisitions for Yangtze.
About Yangtze Telecom Corp.
Yangtze Telecom Corp. is a provider of wireless digital TV services for consumers and businesses in China and Mongolia. For further information on Yangtze Telecom Corp., please visit the Company's web site at www.yangtzetelecom.com.
FOR FURTHER INFORMATION PLEASE CONTACT:
Yangtze Telecom Corp. Jennifer Wang Investor Relations (604) 688-7038 (604) 688-7805 (FAX) Email: info@yangtzetelecom.com Website: www.yangtzetelecom.com
The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.
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