Business Editors
VANCOUVER, B.C.--(BUSINESS WIRE)--Nov. 29, 2000
Oriole Systems Inc. (CDNX:OOL.) today announced the Company's involvement in the development of an English language, North American based Internet Portal-Exchange for the Chinese textile and garment industries.
The Agreement of Cooperation is between China Texport Inc. and the China Textile Information Center (CTEI), an Agency of the China State Textile Administration.
The Agreement specifies that China Texport Inc. will develop, host and manage the B2B e-commerce platform to support Chinese textile and garment exports to North America, and will also be responsible for marketing the Portal-Exchange in North America. CTEI will set up the infrastructure required in China to support this platform. China Texport Inc. expects to launch the portal approximately in the summer of 2001. By the time the North American Portal-Exchange is operational, it is expected that CTEI will have completed the technical, sales, marketing and customer service infrastructures in China needed to support the Portal-Exchange. Initially revenues will be generated from annual membership fees charged to Chinese seller enterprises for access to the Portal-Exchange. As awareness and use of the Portal-Exchange for purchasing transactions increases on the part of the North American user community, revenues will be increasingly derived as a percentage of sales. Some revenue will also be generated from advertising and referral fees from alliance partners. There will be no charge for access to the Portal-Exchange by purchase side users.
China Texport Inc. intends to outsource the technical and operational components of the Portal-Exchange to a group of technology and service providers under the leadership of Bell Canada and BCE Emergis.
Oriole and its affiliates have been chosen to assist in the development of the site through Oriole's proprietary software product Emart Design SW with its recently greatly enhanced portal environment using PortalPrise's TeleSite(C). This is an advanced software product for the implementation of Enterprise Information Portals and eBusiness Systems. Oriole will also be providing and deploying various visualization and other Internet technologies from its affiliates including NetDirect Communications Inc.
Al Gerenser President of Oriole said that being involved in this project would have a number of benefits for Oriole Systems. Being selected to be part of the development team in a substantial and important initiative, demonstrates extreme confidence in our Emart product line and is another major milestone for Oriole. Involvement in this initiative will provide exposure and visibility, and benefit our Emart marketing efforts in two of our major geographical target markets, North America and China. Working on the outsourced technical and operational components of this project under the leadership of Bell Canada and BCE Emergis illustrates the quality and viability of Oriole's product offering, he added.
Darrell McFeely, founder of China Texport Inc. said Oriole's experience in the Chinese market, including its joint venture agreement with ChineseWorldNet.com to develop a financial services information portal for the Chinese market, and its superior B2B Software with an advanced portal environment, is what made us want to partner with the Company.
Mr. Gerenser noted that the importance of the English language, North American based Internet Portal-Exchange for the Chinese textile and garment industries can be seen in the context of the project's addressable markets. The key market driver for the Textile Portal-Exchange is the tremendous growth expected in online B2B transactions over the next 5 years. The China State Textile Bureau recognizes that while estimates of growth rates in B2B e-commerce vary from one research firm to another, it is clear that in order to compete effectively, companies will increasingly require the ability to transact business online. According to Chinese sources, total Chinese exports amounted to US $200 Billion in 1999 of which 20% were to North America and a further 13% to Western Europe.
According to the China Textile Information Center, there are more than 46,500 Chinese textile firms with a combined work force of 10 Million and an annual output of US $90 Billion. China controls over 25% of the global export trade in textiles and garments with annual exports in excess of US $46 Billion. According to U.S.A. and Canadian sources, approximately $10 Billion of textiles and products containing textiles were imported from China in 1999. The China State Textile Bureau estimates that the profit from the entire textile industry in China will amount to at least 20 billion Yuan (US$2.5 Billion) in 2000.
Additionally, the textile industry in China is undergoing a strategic restructuring. In the past, the textile industry like all other industries in China operated in a planned economy with all major decisions being made by centralized authorities. The textile industry was the chosen industry to pilot the reform of State-owned enterprises and to encourage private sector and foreign participation in the industry. The State Textile Industrial Bureau's objective is to increase China's exports of textiles and garments to US$100 Billion by 2010, a 100% increase over 2000 export levels for the coming 10 years.
Oriole Systems Inc. http://www.oriolesystems.com/ is engaged in the design, development and support of e-business and Internet software through its proprietary product Emart Design SW, a suite of software products that perform e-business transactions and will eventually allow for all business functions in an enterprise to work together. Emart Design SW is an advanced software product, designed as a platform, or main building block, on which both large and small enterprises can build their Internet and Intranet Web presence. Emart allows for an enterprise to present a single Web entry point for both Business-to-Business and Business-to-Consumer transactions.
The Canadian Venture Exchange has not reviewed and does not accept responsibility for the accuracy of this news release.
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