XcelMobility Announces Acquisition of Shenzhen Jifu Communication Technology Co., Ltd Positioning the Company to Lead the LBS Market in China
May 28, 2013
REDWOOD CITY, CA – May 28, 2013 – XcelMobility, Inc. (OTCBB: XCLL; OTCQB: XCLL) ("Xcel" or the "Company"), a leading developer of mobile internet products and services, announced today that it has acquired the video encoding and compression group of Shenzhen Jifu Communication Technology Co., Ltd., a professional manufacturer specializing in video surveillance system, software platforms and fiber optic solutions.
Shenzhen Jifu develops video encoding and compression technology for Geospatial Multimedia applications. The group has over 50 engineers working on algorithms and applications including the merging of real-time video with location-based technology. The technology enables video, imagery & audio streams to be recorded together with navigation (e.g. GPS), as well as, orienatation (e.g. Digital Compass) sensor information. The team has filed and received numerous patents related to video and image encoding.
Ron Strauss, Executive Chairman of the Board of XcelMobility, Inc., commented, “The launch of our Mach 5 LBS product made it easy to develop location-based solutions that assist in corporate image display, new store expansion, operations management and sales promotion, among others. The need for the most advanced location-based technology has become essential in order to compete in today’s competitive smartphone industry.”
Strauss continued, “By combining Jifu’s video solutions team with our LBS group, our combined engineering team and salesforce has the potential to deliver the industry’s most advanced application for location-based technology on mobile devices. Most important, we are entering the market with expected sales of over $3 million in 2013. We look forward to the strong potential that lies ahead for continued financial growth.”
Under the terms of the agreement, XcelMobility will issue an aggregate of 30,000,000 shares of the Company's common stock to the Jifu Stakeholders. The shares will be released after the Company has reviewed Jifu's audited financial statements for the year ended December 31, 2013 and Jifu has achieved revenues of at least $4,000,000.
About XcelMobility, Inc. Xcel Mobility is a leading developer of mobile internet products and services, specifically focused on China’s burgeoning mobile market where mobile device users access the internet at double the rate than those in the U.S. The Company has developed an online product portal, www.mach5.cn, where resellers, developers and consumers, can access its cutting-edge suite of Mach5 products, including the Mach5 Accelerator- Xcel’s flagship product that significantly accelerates internet access- and the Mach5 LBS- Xcel’s newest technology, which
allows developers and businesses to easily add advanced location capabilities to their mobile apps. With the introduction of the Mach5 LBS, Xcel has become the leader in providing location-based services for China’s mobile market as it offers developers an easy and efficient means for incorporating real-time mapping to mobile applications.
The combination of smartphone proliferation, a surge in application storefront launches and new developments in hybrid positioning technologies are expected to help drive revenues from mobile location-based services (MLBS) around the world to more than $12.7 billion by 2014 (Juniper Research). Through the Company’s deep relationships with China’s leading mobile operators and its ability to incorporate today’s most interactive and technologically advanced social and gaming applications to its suite of mobile internet products and services, it is rapidly securing a leadership position in China’s mobile market.
Notice Regarding Forward-Looking Statements This news release contains "forward-looking statements" as that term is defined in Section 27A of the United States Securities Act of 1933, as amended and Section 21E of the Securities Exchange Act of 1934, as amended. Statements in this press release which are not purely historical are forward-looking statements and include any statements regarding beliefs, plans, expectations or intentions regarding the future. Such forward-looking statements include, among other things, the development of new business opportunities, zero operational impact and projected costs, future operations, revenue, profits, gross margins and results of operations. Actual results could differ from those projected in any forward-looking statements due to numerous factors. Such factors include, among others, the inherent uncertainties associated with new projects and development stage companies. These forward-looking statements are made as of the date of this news release, and we assume no obligation to update the forward-looking statements, or to update the reasons why actual results could differ from those projected in the forward-looking statements. Although we believe that any beliefs, plans, expectations and intentions contained in this press release are reasonable, there can be no assurance that any such beliefs, plans, expectations or intentions will prove to be accurate. Investors should consult all of the information set forth herein and should also refer to the risk factors disclosure outlined in our annual report on Form 10-K for the most recent fiscal year, our quarterly reports on Form 10-Q and other periodic reports filed from time-to-time with the Securities and Exchange Commission.