INTN Intac Intl (MM)

HONG KONG, May 16 /PRNewswire-FirstCall/ -- INTAC International, Inc. (NASDAQ:INTN) (FSE: WKN 805768) ("INTAC"), an emerging provider of educational and career development services, software for educational institutions and distributor of wireless handset products in China, today announced its results of operations for the three and six months ended March 31, 2006. Revenues for the three and six months ended March 31, 2006 were $25.2 million and $43.5 million, respectively, compared to $14.7 million and $65.4 million for the same periods in 2005. Revenues for the three months ended March 31, 2006 included $23.9 million from the Company's distribution business and $1.3 million from its career development services, compared to $13.0 million from its distribution business and $1.7 million from its career development services for the same period in 2005. Revenues for the six months ended March 31, 2006 included $41.0 million from the Company's distribution business and $2.5 million from its career development services, compared to $59.6 million from its distribution business and $5.9 million from its career development services for the same period in 2005. Gross profit for the three and six months ended March 31, 2006 was $2.4 million and $3.8 million, respectively, compared to $2.3 million and $9.4 million in the same periods in 2005. Income from operations for the three months ended March 31, 2006 was $302,175 and loss from operations for the six months ended March 31, 2006 was $638,435, compared to loss from operations for the three months ended March 31, 2005 of $229,439 and income from operations of $5.2 million for the six months ended March 31, 2005. Net income for the three months ended March 31, 2006 was $210,295 ($0.01 per share) and net loss for the six months ended March 31, 2006 was $524,135 ($0.02 per share), compared to a net loss for the three months ended March 31, 2005 of $175,129 ($0.01 per share) and net income of $4.7 million ($0.22 per share) for the six months ended March 31, 2005. The overall improvement in net income for the quarter is attributable to higher distribution revenue associated with increased demand for wireless handsets, our first calling card distribution revenue and lower operating expenses. Overall gross profit for the quarter increased slightly mainly due to the calling card distribution revenue. "We are pleased with the progress the company has made in 2006. We improved our operating results for the quarter ended March 31, 2006 with net income of $210,295, compared to a net loss for the previous quarter ended December 31, 2005 of $734,430," said Wei Zhou, President and CEO of INTAC. "On April 20, we announced the formation of HSW International through the acquisition of the rights of HowStuffWorks, Consumer Guide(R) and Mobil Travel Guide(R) for China and Brazil, and we secured a commitment for $22.5 million in growth capital from investors including Carl Icahn and DWS Investments. We believe we are well positioned to build a robust educational online business in the rapidly growing China Internet market leveraging these new assets and relationships. At closing, INTAC will become HSW International and will continue to be listed on NASDAQ." About INTAC International, Inc. INTAC International, Inc. is a leading provider of integrated educational and career development services as well as management software products for educational institutions in China. INTAC International is also engaged in the distribution of premium brand wireless handset products. Forward-Looking Statements This press release contains certain "forward-looking statements." Such forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause our actual results, performance or achievements expressed or implied by such forward-looking statements to differ materially from those projected or implied. Factors that could cause or contribute to such differences include, among other things: our ability to effectively execute our business plan; our ability to timely complete our INTAC Mobile Telecommunications Institute courseware and facilities; our ability to attract trainees for our INTAC Mobile Telecommunications Institute training program; changes in general business conditions; the impact of competition in our industry, especially in the Asia-Pacific Rim and in the wireless handset industry; our small number of current suppliers and customers in our wireless handset distribution business; the added expense structure assumed by us as a U.S. public company; political and economic events and conditions in jurisdictions in which we operate; Internet laws and regulations of the government of The People's Republic of China, or the PRC, that are unclear and may change in the near future; regulation and censorship of information distribution in China which may adversely affect our business; political and economic policies of the PRC; the risk of the loss of the agreements, or the exclusivity terms, with the PRC's Education Management Information Center and the Ministry of Education; the high cost of Internet access that may limit the growth of the Internet in China and impede our growth; advertising and e-commerce customers that have only limited experience using the Internet for advertising or commerce purposes; the acceptance of the Internet as a commerce platform in China which depends on the resolution of problems relating to fulfilment and electronic payment; concerns about security of e-commerce transactions and confidentiality of information on the Internet that may increase our costs, reduce the use of our Internet portal and impede our growth; our network operations that may be vulnerable to hacking, viruses and other disruptions, which may make our products and services less attractive and reliable; changes in interest rates, foreign currency fluctuations and capital market conditions; and other factors including those detailed under the heading "Risk Factors" and elsewhere in the INTAC's annual report on Form 10-K for the fiscal year ended September 30, 2005, and Form 10-Q for the three and six months ended March 31, 2006, as filed with the Securities and Exchange Commission. We disclaim any intention or obligation to revise any forward-looking statements whether as a result of new information, future events or otherwise. INTAC undertakes no obligation to update any forward- looking statements made in this media release. For Further Investor Information: J. David Darnell Senior Vice President & Chief Financial Officer INTAC International PH: 469.916.9891 DATASOURCE: INTAC International, Inc. CONTACT: J. David Darnell, Senior Vice President & Chief Financial Officer of INTAC International, Inc., +1-469-916-9891, or Web site: http://www.intac.cn/

Copyright