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News
November 18th, 2008
Alternet Systems, Inc. Reaches Agreement in Support
of Estimated $140 Million in Fare Collection with the Association
of Urban Buses of the City of Guatemala
Expected Fare Increase Could Bring Fare Collection Revenue
to $280 Million by 2010
MIAMI, FLORIDA- November 18, 2008 - Alternet Systems,
Inc. ( OTCBB: ALYI ) today announced that Transtech de Guatemala,
S.A., a regional subsidiary of the Company’s joint venture
with Tianjin IC Card Public Network Systems Co. LTD (TCPS),
has entered into a letter of intent (LOI) with the Association
of Urban Buses of the City of Guatemala. Under this agreement,
the parties are developing a 10 year, renewable contract where
Transtech de Guatemala will provide the Association, urban
mass transportation technology and fleet replacement financing
facilities. The proposed new mass transportation systems and
fleet replacement financing would benefit a population of
more than 3 million within the City of Guatemala. The expected
fare volume in 2009 is approximately $140 million. However,
a fare increase is expected that could increase fare collection
revenue to $280 million by 2010. Alternet used their Guatemalan
subsidiary to forge their relationship with the Association
of Urban Buses of the City of Guatemala.
Trade Mission to China to Review
Existing Mass Transportation Technology Operations in Action
Members of the Association of Urban Buses recently traveled
to China with Transtech, the Company’s joint venture
with Tianjin IC Card Public Network Systems Co. LTD (TCPS).
During the trip, members of the Association reviewed TCPS’
mass transportation technology and operations in production
to see how these systems would benefit their own city’s
mass transportation system in Guatemala.
TCPS is a large company based just outside of Beijing in Tianjin,
China, providing urban mass transportation fare collection
with contactless card and terminal solutions. TCPS systems
have been developed and implemented in 76 cities and process
daily prepaid fares for more than 300 million people.
Technology and Fleet Financing for the City of Guatemala
Under the terms of the LOI, the Association of Urban Buses
will consider similar technology implementations to the ones
they reviewed in China for the City of Guatemala, which include
prepaid fare collection system, fleet management systems,
control systems and user security systems. In addition to
the proposed technology innovations for the city’s mass
transportation system, Transtech has proposed facilitating
financing of new buses for the City of Guatemala’s fleet
replacement program through their partnership with the largest
bank in Guatemala, Banrural. The proposed lending facility
is estimated at $350 million and would be used to acquire
3,400 new buses for the city.
Strategic Partnership with Banrural, the
Largest Bank in Guatemala
Alternet recently announced that their joint venture with
Tianjin IC Card Public Network Systems Co. LTD (TCPS), Transtech
Sino America, Inc. finalized a partnership with Banrural (www.banrural.com),
the largest bank in Guatemala with the largest number of bank
branches. In the partnership, Banrural will serve as Transtech’s
financial partner for E-transaction, E-ticketing and mobile
payment solution projects in Guatemala and the surrounding
region, with an initial focus on mass transportation e-ticketing
solutions. Transtech will benefit from a variety of financial
services Banrural provides, including trust managements, cash
collection and sales channels through Banrural’s extensive
network of ATM’s. Initially, Banrural’s ATM network
will be used as a recharge point of sale system for prepaid
bus fare collection. Additionally, the Banrural partnership
may provide key financing to Transtech’s fleet replacement
initiative in Latin America, providing high efficiency and
low emission liquid petroleum gas (LPG) buses to municipalities
with aging or inefficient bus fleets. The partnership has
the potential for additional expansion to include utilities
prepayment and municipal services.
ALYI Corporate Fact Sheet
A Fact Sheet highlighting the Company's recent acquisition
of TekVoice Communications, E-Transaction technology, mass
transportation management services and strategic partnerships
is now available.
If you are interested in receiving a copy of the Fact Sheet
call 214-556-5927 or send an e-mail to Red River Advisors
at [email protected].
About Alternet Systems (www.alternetsystems.com)
Alternet Systems Inc. (OTC BB: ALYI.OB - News) provides: telecommunications
services; education and health-care application software and
systems; and electronic transaction platforms for the mass
transportation and utility markets. Alternet Systems Inc.
is a U.S. corporation headquartered in Miami, Florida.
Certain statements in this news release may contain forward-looking
information within the meaning of Rule 175 under the Securities
Act of 1933 and Rule 3b-6 under the Securities Exchange Act
of 1934, and are subject to the safe harbor created by those
rules. All statements, other than statements of fact, included
in this release, including, without limitation, statements
regarding potential future plans and objectives of the Company,
are forward-looking statements that involve risks and uncertainties.
There can be no assurance that such statements will prove
to be accurate and actual results and future events could
differ materially from those anticipated in such statements.
Contact:
Red River Advisors
214-556-5927
[email protected]
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