China Interactive Education Inc. provides interactive teaching and learning solutions in China. The company has secured $79 million in framework contract wins with local area distributors for its new Interactive Classroom Solution (”ICS”) products and Educational Learning Products (”ELP”).
The contracts are agreements to purchase China Interactive products at wholesale prices and sell them within specific authorized geographic locations throughout China. If sales targets are not met, China Interactive has the right to terminate or renew distribution contracts.
Ruofei Chen, CEO of China Interactive, said the company’s progress represents advancements in China’s educational system.
“We are very pleased with the continued success in our ELP segment and very excited by the successful launch of our innovative Interactive Classroom Solution. We believe that the rapid market traction for ICS, as demonstrated by our $65 million in contract wins in the ICS segment in less than three months, reflects the strong demand by China’s schools for IT and teaching infrastructure product upgrades, and customer confidence in our ability to meet this demand. We expect that our innovative, affordable, end-to-end ICS solution will be a key growth driver for China Interactive Education in 2010 and beyond,” Chen stated in the press release.
China Interactive said about $65 million of its contract wins are in the ICS product segment; approximately $14 million are in the ELP segment.
The company said it expects the reach of the secured contracts to cover more than 149,000 schools in Guangdong, Shandong, Fujian, Sichuan, Guangxi, Shanghai and Beijing, and that its ELP products will reach retail distribution networks in 18 provinces.