Clarification On The Announcement In Relation To The Subscription Of Shares In The Share Capital Of Ahead Mobile Sdn. Bhd.
BackMar 10, 2004Further to the announcement made on 8 March 2004 (the "Announcement") in relation to the subscription of shares in the share capital of Ahead Mobile Sdn. Bhd. ("AMISB")(the "Investment'), the Board of Directors of Unified Communications Holdings Limited ( "UCHL") wishes to clarify that the business model of AMISB referred to in the aforesaid Announcement is largely based on revenue sharing programme as outlined in page 89 of UCHL's prospectus dated 10 February 2004 and is one of UCHL's business strategies to seek recurring revenue streams. Under a revenue sharing business model, revenue is pegged directly to the volume of transactions sent through the customer's network. AMISB will share the revenue with the customer, who is a network operator based on a pre-negotiated percentage pegged to the volume of transactions. Hence, the higher the volume of transactions, the higher the revenue to AMISB and therefore returns to the Group.
The first service to be provided by AMISB under the revenue sharing programme with the customer is the location based services. Similar service has been provided in Korea by Ahead Mobile Inc, the other joint venture partner in AMISB, and is well received in Korea and similar positive response from the Malaysian and regional market is expected.
In this respect, although the Investment in AMISB is expected to contribute positively to the Group's earnings for the year ending 31 December 2004, UCHL is unable to quantify the revenue and hence the materiality of the return of Investment in AMISB at this juncture.