BEIJING, July 29 /PRNewswire-Asia / -- Wowjoint Holdings
Limited ("Wowjoint," or the "Company") (Nasdaq: BWOW, BWOWU,
BWOWW), a leading provider of customized heavy duty lifting and
carrying machinery used in large scale infrastructure projects such
as railway, highway and bridge construction, today announced it has
signed a one year lease agreement with China Railway Group
providing for payments valued at approximately $2.2 million USD with respect to the lease of a
tyre trolley by China Railway Group. The lease terms include an
up-front payment of approximately $400,000 plus monthly payments of approximately
$150,000 USD for a period of 12
months. China Railway has the option to purchase the equipment at
residual value at the end of the lease.
Mr. Yabin Liu, Chief Executive
Officer of Wowjoint, stated: "We are pleased to announce this lease
agreement with China Railway Group and believe it provides a
solution to stimulate sales while meeting customer demands.
Although expansion into the leasing business requires Wowjoint to
finance construction of the equipment, we believe this structure
will provide our Company with a recurring and more predictable
revenue stream. We believe we will be able to secure bank financing
to cover the majority of the carrying costs. In addition, we expect
to structure future leases with a buy-out clause."
About Wowjoint Holdings Limited
Wowjoint is a leading provider of customized heavy duty lifting
and carrying machinery used in such large scale infrastructure
projects as railway, highway and bridge construction. Wowjoint's
main product lines include launching gantries, tyre trolleys,
special carriers and marine hoists. The company's innovative design
capabilities have resulted in patent grants and proprietary
products. Wowjoint is well positioned to benefit directly from
China's rapid infrastructure
development by leveraging its extensive operational experience and
long-term relationships with established blue chip customers.
Information on Wowjoint's products and other relevant information
are available on its website at http://www.wowjoint.com .
Forward-Looking Statements
This press release includes "forward-looking statements" within
the meaning of the safe harbor provisions of the United States
Private Securities Litigation Reform Act of 1995. Words such as
"expect," "estimate," "project," "budget," "forecast,"
"anticipate," "intend," "plan," "may," "will," "could," "should,"
"believes," "predicts," "potential," "continue," and similar
expressions are intended to identify such forward-looking
statements. Forward-looking statements in this press release
include matters that involve known and unknown risks, uncertainties
and other factors that may cause actual results, levels of
activity, performance or achievements to differ materially from
results expressed or implied by this press release. Wowjoint
undertakes no obligation and does not intend to update these
forward-looking statements to reflect events or circumstances
occurring after the date of this communication. You are cautioned
not to place undue reliance on these forward-looking statements,
which speak only as of the date of this communication. All
forward-looking statements are qualified in their entirety by this
cautionary statement. All subsequent written and oral
forward-looking statements concerning Wowjoint or other matters and
attributable to Wowjoint or any person acting on their behalf are
expressly qualified in their entirety by the cautionary statements
above. Wowjoint does not undertake any obligation to update any
forward-looking statement, whether written or oral, relating to the
matters discussed in this news release.
For more information, please contact:
Company:
Anthony (Tony) Hung
Chief Financial Officer
Tel: +86-10-8957-9330 x8011
Email: tony@email.wowjoint.com
Investors:
Scott Powell
HC International, Inc.
Tel: +1-917-721-9480
Email: scott.powell@hcinternational.net
Web: http://www.hcinternational.net
SOURCE Wowjoint Holdings Limited
