New Energy Systems Group completes acquisition of Anytone International (HK)

NEW YORK, USA & SHENZHEN, CHINA: New Energy Systems Group, a manufacturer and distributor of battery components in China, has completed the previously announced acquisition of Anytone International (HK) Co. Ltd and its wholly owned subsidiary, Shenzhen Anytone Technology Co. Ltd (Anytone), a rapidly growing Shenzhen-based high tech, integrated product research, manufacturing and marketing company for lithium batteries.

New Energy Systems Group paid $33.7 million for the company consisting of $10.0 million in cash and the remaining $23.7 million by issuing approximately 3.6 million shares of common stock based on an average stock price of $6.60 per share.

Fushun Li, CEO, commented: "We are pleased to have successfully completed the acquisition of Anytone, a rapidly growing manufacturer of lithium ion batteries, at an attractive purchase price of 5.0x 2010 projected net income. Anytone brings an impressive track record, having achieved annual revenue growth in excess of 100 percent over the past four years.

"This acquisition broadens our product offering and expands our distribution channels. Moreover, we expect to benefit from meaningful operating leverage and economies of scale. We believe this acquisition demonstrates our ability to successfully identify and complete attractive acquisitions. We continue to have a very healthy balance sheet and will opportunistically consider other acquisitions that we believe will create additional shareholder value."