UT Kangda announces 48.5 million dollar investment to appoint new CEO

US Eastern Time February 1 6:00 (Beijing time February 1 19:00) news, UT Starkon (NASDAQ:UTSI) announced today, and Beijing also Zhuang International Investment Development Co., Ltd. (hereinafter referred to as "also Zhuang International") reached an agreement, the two sides will become a strategic cooperative relationship.　　UT will receive 48.5 million of dollars in investment from both the international and two unrelated investment funds Ram Max Group and Shah Capital Management. The three investment companies ' advisers are Yellowstone capital. As part of the investment agreement, UT will issue about 22 million common shares at a price of USD 2.20 per share.　　Also Zhuang international investment of 25 million U.S. dollars, RAM Max Group investment of 12.5 million U.S. dollars, Shah capital investment of 11 million U.S. dollars. After the deal is completed, Du Baixuan, the former deputy chief engineer of SARFT, will join UT's board of directors. In addition, also Zhuang International deputy general manager Lee and Huangshi Capital Executive director Huangshao will also join the UT of the board. Lee and Huangshao will replace Allen Ranzmer (Allen lenzmeier) and Jeff Clark (Jeff Clarke). The two men will resign after the investment is completed.　　UT's Board of directors will be increased from 6 to 7 seats. "We are delighted to be in partnership with the Beijing Economic and technological development zone and to invest in it, as well as to gain access to ram Max and Shah Capital," said Peter Blackmore, UT's CEO and chief executive, Pitt Blackmore. Cooperation with the Beijing Economic and technological development zone conforms to UT's growth strategy of focusing on specific ip-based infrastructure products and services in high-growth regions of Asia, especially China. UT's growth strategy is in line with the recent guidelines issued by the State Council on the promotion of triple-net integration. This partnership will bring about financial benefits for UT, with high strategic value, such as enhancing our relationship with China, and making UT Kangda a profitable place in the future. To further develop UT's strategic objectives in China, UT has appointed Loux as the new CEO and CEO. The effective time is three months after the completion of the investment or June 30, 2010, whichever is the later time. During the completion of the transaction to the CEO's appointment, Loux will serve as chief operating officer of UT Kangda.　　After Loux became the CEO of UT Kangda, Blackmore will retire. "The Thomas Toy," said Thomas Toy, President of UT. UT's team has made great efforts to redesign business strategies, streamline business lines, strengthen balance sheets, keep companies on a moderate scale, solve historical legal problems, and establish a good relationship with the entities of the Beijing municipal government. I need to thank CEO Black Moore for all this work. ”He also thanked Yellowstone capital and expressed his expectation for Loux's succession. Loux previously acted as the joint chief operating officer of source photonics of optoelectronic devices Company and general manager of China region.　　He also worked in Fei Bo Chuang, US Business NX and China Technology Import and Export Corporation and other enterprises. As part of the agreement, UT Kangda will relocate its headquarters to Beijing. This agreement will take effect after the investment is completed. In addition, according to the agreement, UT Kangda will receive tax concessions from the Beijing Economic and technological development zone, as well as other financial and non-financial assistance.　　UT is planning to retain all the business in Hangzhou and Shenzhen. There are specific terms of completion for the deal, including approval from China's regulatory authorities. UT is scheduled to complete the transaction before March 31, 2010. (D-Gold)