Full Press Release Details
NET FORCE SYSTEMS 6K, PRESS RELEASE 10.31.03
NET FORCE SYSTEMS INC.SIGNS LETTER OF INTENT TO ACQUIRE
TANGSHAN YIAN BIOLOGICAL ENGINEERING CO., LTD.
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BEIJING, October 31, 2003 (BUSINESS WIRE) -- Net Force Systems Inc. ("Net
Force") (NASD OTC-BB: NTFSF) is pleased to announce that Net Force has entered
into a letter of intent to acquire 100% of the issued and outstanding shares of
Tangshan Yian Biological Engineering Co., Ltd. ("Tangshan Yian"), a company
organized under the laws of the People's Republic of China, through the issuance
of 3,500,000 shares of common stock of Net Force plus US$2,200,000 in cash,
which will be payable by Net Force within 12 months from the date of entering
into a formal agreement, to the shareholders of Tangshan Yian pro rata. The
completion of the acquisition of Tangshan Yian by Net Force is subject to Net
Force completing due diligence to its satisfaction. If the acquisition of
Tangshan Yian is completed, then Tangshan will become and be operated as a
wholly owned subsidiary of Net Force.
"Tangshan Yian" operates in the city of Tangshan, People's Republic of China, as
a research and development company specializing in the development and
manufacturing of various vaccines including flu vaccines and vaccines for
Hepatitis A. The company supplies these vaccines to Sinovac Biotech Co., Ltd.
Net Force currently owns a majority of the outstanding shares of Sinovac Biotech
Co., Ltd. as announced in Net Force's press release dated September 29, 2003.
As a result of Net Force's acquisition of a majority of the outstanding shares
of Sinovac Biotech Co. Ltd., Net Force decided to amend its articles of
incorporation to change its name from Net Force to "Sinovac Biotech Ltd." This
name change was effected on October 21, 2003. Net Force is currently proceeding
with having this name change registered with the NASD Over-the-Counter Bulletin
Board to receive a new symbol.
Net Force intends to expand Sinovac Biotech Co., Ltd.'s vaccine sales. The
research and development operations of Tangshan Yian is expected to supply
increased quantities of vaccines to the rapidly expanding Chinese biotechnology
industry and to provide new and updated products to be available for the
domestic and international markets. Effective on November 3, 2003, Net Force
will trade under its new name "Sinovac Biotech Ltd." with a new symbol of
ABOUT SINOVAC BIOTECH CO., LTD.
In 2002, Sinovac Biotech Co. Ltd. ("Sinovac") successfully launched sales of its
Hepatitis A vaccine - the first of its kind ever developed by Chinese scientists
using their own proprietary technology. A GlaxoSmithKline survey suggests that
China's market for the Hepatitis A vaccine alone will be worth about US $1.5
Sinovac is also currently working towards the near-term launch of a combined
Hepatitis A&B vaccine for Chinese and foreign markets. Clinical trials for this
vaccine have recently been completed and are currently being evaluated. There is
only one competing Hepatitis A&B vaccine with a reasonable efficacy and safety
profile, GlaxoSmithKline's Twinrix, but its use is limited to individuals over
the age of 16. Based on results to date, Sinovac's version of this vaccine is
expected to prove safe and effective for the inoculation of China's estimated
300 million children.
Sinovac has and expects to develop vaccines that are as safe and efficacious as
Western pharmaceutical company products yet are expected to be far less
expensive than their Western counterparts - a key competitive advantage in
marketing to China and the developing Southeast Asian countries.
A study by GlaxoSmithKline has forecasted that the Chinese pharmaceutical market
is expected to surpass the United States as the world's largest pharmaceutical
In addition to serving its domestic Chinese market, Sinovac is committed to
aggressively targeting overseas markets, particularly SouthEast Asia, with its
internally developed vaccines. International acceptance of these vaccines is
also expected to be underscored by their high approval rating among the highest
levels of Chinese government. Specifically, Sinovac's Hepatitis A vaccine has
been endorsed by China's National Institute for the Control of Pharmaceutical
and Biological Products (NICPBP), an affiliate of the Chinese State Food and
Drug Administration (SFDA). The NICPBP agency has been recognized by the World
Health Organization for its expertise in the area of drug quality control.
For further information please refer to the Company's 6K filing with the SEC on
26 September, 2003 or refer to Sinovac's website at www.sinovac.com.
Contact: Graham Taylor at (415) 548 8881 or (888) 888 8312.
MANAGEMENT OF NET FORCE WHO TAKE FULL RESPONSIBILITY FOR ITS CONTENTS HAS
PREPARED THIS NEWS RELEASE. THIS NEWS RELEASE MAY INCLUDE FORWARD-LOOKING
STATEMENTS WITHIN THE MEANING OF SECTION 27A OF THE UNITED STATES SECURITIES ACT
OF 1933, AS AMENDED, AND SECTION 21E OF THE UNITED STATES SECURITIES AND
EXCHANGE ACT OF 1934, AS AMENDED, WITH RESPECT TO ACHIEVING CORPORATE
OBJECTIVES, DEVELOPING ADDITIONAL PROJECT INTERESTS, NET FORCE'S ANALYSIS OF
OPPORTUNITIES IN THE ACQUISITION AND DEVELOPMENT OF VARIOUS PROJECT INTERESTS
AND CERTAIN OTHER MATTERS. THESE STATEMENTS ARE MADE UNDER THE "SAFE HARBOR"
PROVISIONS OF THE UNITED STATES PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995
AND INVOLVE RISKS AND UNCERTAINTIES WHICH COULD CAUSE ACTUAL RESULTS TO DIFFER
MATERIALLY FROM THOSE IN THE FORWARD-LOOKING STATEMENTS CONTAINED HEREIN. THIS
NEWS RELEASE SHALL NOT CONSTITUTE AN OFFER TO SELL OR THE SOLICITATION OF AN
OFFER TO BUY NOR SHALL THERE BE ANY SALE OF THESE SECURITIES IN ANY JURISDICTION
IN WHICH SUCH OFFER, SOLICITATION OR SALE WOULD BE UNLAWFUL PRIOR TO
REGISTRATION OR QUALIFICATION UNDER THE SECURITIES LAWS OF ANY SUCH