EX-99.1
3
v196349_ex99-1.htm
Unassociated Document
Exhibit
99.1
Universal
Travel Group Announces Sale of TRIPEASY Kiosks for RMB 40.3 Million
~Retains
Exclusive Kiosk Travel Product Sales Rights for Two-Year Period~
[10-September-2010]
SHENZHEN,
China, Sept. 10 /PRNewswire-Asia-FirstCall/ -- Universal Travel Group (NYSE:
UTA) ("Universal Travel Group" or the "Company"), a leading travel services
provider in China, today announced that the Company, via its subsidiary,
Shenzhen Yuzhilu Aviation Service Co., Ltd., has entered into an agreement to
sell all of its 1,523 TRIPEASY Kiosks to Shenzhen Xunbao E-Commerce Co., Ltd.
("Shenzhen Xunbao"), an online insurance company, for RMB 40.3 million
(approximately $5.9 million) in cash. The transaction is expected to be
completed by the end of the fourth quarter of 2010.
Even
though Universal Travel Group will no longer operate the kiosks after the
completion of the transaction, the Company will have exclusive air ticketing,
hotel reservation and package tour travel product sales rights in all existing
and future kiosks for a two-year period from the execution of the agreement.
Shenzhen Xunbao is expected to utilize the kiosks as a platform for selling its
travel insurance and other insurance products and is expected to continue to
invest in the expansion of the kiosk network.
TRIPEASY
Kiosks are generally located in high traffic, high-end residential and
commercial areas like shopping malls, office buildings, residential apartment
buildings, and tourist sites. The kiosks provide customers with detailed travel
information, easy credit and bank card payment capabilities, and toll-free
telephone connections to call centers. In addition, they serve as an advertising
and marketing platform.
"We
believe this sale will allow us to better focus on our core operations of
delivering high quality travel products to our customers throughout China
without having to incur the ongoing installation and servicing costs of
maintaining over 1,500 TRIPEASY Kiosks", stated Ms. Jiangping Jiang, Chief
Executive Officer. "We do not expect this transaction to reduce our top-line, at
least for the next two years, as we have secured exclusive air ticketing, hotel
reservation and package tour travel product sales rights via the kiosk network.
Our travel product offerings are complementary to Shenzhen Xunbao's travel
insurance products and, as a result, we expect to negotiate a mutually
beneficial arrangement to continue to utilize the TRIPEASY Kiosks as one of our
multiple sales channels after the initial two-year period expires. In terms of
cost savings, we expect an increase in our gross margin as a result of
eliminating costs associated with the kiosks".
About
Universal Travel Group
Universal
Travel Group, founded in 1998, is a leading travel services provider in China.
The Company primarily focuses on the leisure travel market and offers its
customers package tours, air ticketing, and hotel reservation services. The
Company has multiple sales channels including two 24-hour call centers; an
online sales portal at
http://www.cnutg.com
; Company-owned and franchised sales offices, and wholesaler relationships. The
Company's headquarters and main base of operations is in Shenzhen in the Pearl
River Delta region of China. More recently, Universal Travel Group has expanded
its business into Western China, opening a second home base in the Chongqing
Delta region, and other attractive, under-penetrated tier-two travel markets
throughout the country. For more information on the Company, please visit
http://us.cnutg.com
.
Safe
Harbor Statement under the Private Securities Litigation Reform Act of
1995
This
press release contains certain statements that may include "forward-looking
statements" within the meaning of federal securities laws. All statements, other
than statements of historical facts, included herein are "forward-looking
statements". Although the Company believes that the expectations reflected in
these forward-looking statements are reasonable, they do involve assumptions,
risks and uncertainties, and these expectations may prove to be incorrect.
Investors should not place undue reliance on these forward-looking statements,
which speak only as of the date of this press release. The Company's actual
results could differ materially from those anticipated in these forward-looking
statements as a result of a variety of factors, including the Company's ability
to successfully expand its market presence and those discussed in the Company's
periodic reports that are filed with and available from the Securities and
Exchange Commission. All forward-looking statements attributable to the Company
or persons acting on its behalf are expressly qualified in their entirety by
these factors. Other than as required under the securities laws, the Company
does not assume a duty to update these forward-looking statements.
For more
information, please contact:
Company
Contact:
Mr. Jing
Xie
Secretary
of Board and Vice President
Universal
Travel Group
Phone:
+86-755-8366-8489
Email:
06@cnutg.cn
Web:
us.cnutg.com
Investor
Relations Contact:
CCG
Investor Relations
Mr.
Crocker Coulson, President
Phone:
+1-646-213-1915
Email:
crocker.coulson@ccgir.com
Web:
http://www.ccgirasia.com
SOURCE
Universal Travel Group

EX - 99 . 1 3 v196349 _ ex99 - 1 . htm Un associated Document Exhibit 99 . 1 Universal Travel Group Announces Sale of TRIPEASY Kiosks for RMB 40.3 Million ~ Retains Exclusive Kiosk Travel Product Sales Rights for Two - Year Period ~ [ 10 - September - 2010 ] SHENZHEN , China , Sept. 10 / PRNewswire - Asia - FirstCall / -- Universal Travel Group ( NYSE : UTA ) ( " Universal Travel Group " or the " Company " ) , a leading travel services provider in China , today announced that the Company , via its subsidiary , Shenzhen Yuzhilu Aviation Service Co . , Ltd . , has entered into an agreement to sell all of its 1,523 TRIPEASY Kiosks to Shenzhen Xunbao E - Commerce Co . , Ltd . ( " Shenzhen Xunbao " ) , an online insurance company , for RMB 40.3 million ( approximately $ 5.9 million ) in cash . The transaction is expected to be completed by the end of the fourth quarter of 2010 . Even though Universal Travel Group will no longer operate the kiosks after the completion of the transaction , the Company will have exclusive air ticketing , hotel reservation and package tour travel product sales rights in all existing and future kiosks for a two - year period from the execution of the agreement . Shenzhen Xunbao is expected to utilize the kiosks as a platform for selling its travel insurance and other insurance products and is expected to continue to invest in the expansion of the kiosk network . TRIPEASY Kiosks are generally located in high traffic , high - end residential and commercial areas like shopping malls , office buildings , residential apartment buildings , and tourist sites . The kiosks provide customers with detailed travel information , easy credit and bank card payment capabilities , and toll - free telephone connections to call centers . In addition , they serve as an advertising and marketing platform . " We believe this sale will allow us to better focus on our core operations of delivering high quality travel products to our customers throughout China without having to incur the ongoing installation and servicing costs of maintaining over 1,500 TRIPEASY Kiosks " , stated Ms . Jiangping Jiang , Chief Executive Officer . " We do not expect this transaction to reduce our top - line , at least for the next two years , as we have secured exclusive air ticketing , hotel reservation and package tour travel product sales rights via the kiosk network . Our travel product offerings are complementary to Shenzhen Xunbao 's travel insurance products and , as a result , we expect to negotiate a mutually beneficial arrangement to continue to utilize the TRIPEASY Kiosks as one of our multiple sales channels after the initial two - year period expires . In terms of cost savings , we expect an increase in our gross margin as a result of eliminating costs associated with the kiosks " . About Universal Travel Group Universal Travel Group , founded in 1998 , is a leading travel services provider in China . The Company primarily focuses on the leisure travel market and offers its customers package tours , air ticketing , and hotel reservation services . The Company has multiple sales channels including two 24 - hour call centers ; an online sales portal at http://www.cnutg.com ; Company - owned and franchised sales offices , and wholesaler relationships . The Company 's headquarters and main base of operations is in Shenzhen in the Pearl River Delta region of China . More recently , Universal Travel Group has expanded its business into Western China , opening a second home base in the Chongqing Delta region , and other attractive , under - penetrated tier - two travel markets throughout the country . For more information on the Company , please visit http://us.cnutg.com . Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995 This press release contains certain statements that may include " forward - looking statements " within the meaning of federal securities laws . All statements , other than statements of historical facts , included herein are " forward - looking statements " . Although the Company believes that the expectations reflected in these forward - looking statements are reasonable , they do involve assumptions , risks and uncertainties , and these expectations may prove to be incorrect . Investors should not place undue reliance on these forward - looking statements , which speak only as of the date of this press release . The Company ' s actual results could differ materially from those anticipated in these forward - looking statements as a result of a variety of factors , including the Company 's ability to successfully expand its market presence and those discussed in the Company 's periodic reports that are filed with and available from the Securities and Exchange Commission . All forward - looking statements attributable to the Company or persons acting on its behalf are expressly qualified in their entirety by these factors . Other than as required under the securities laws , the Company does not assume a duty to update these forward - looking statements . For more information , please contact : Company Contact : Mr . Jing Xie Secretary of Board and Vice President Universal Travel Group Phone : + 86 - 755 - 8366 - 8489 Email : 06@cnutg.cn Web : us . cnutg . com Investor Relations Contact : CCG Investor Relations Mr . Crocker Coulson , President Phone : + 1 - 646 - 213 - 1915 Email : crocker.coulson@ccgir.com Web : http://www.ccgirasia.com SOURCE Universal Travel Group