TechnoConcepts Inc. announced that it has completed its acquisition of the set-top box business from Shanghai Jinshilin Technologies Development Company, Ltd. (Jinshilin). Terms of the acquisition were not disclosed, pending approval by the PRC government. Zuoping Zhang, former president of Shanghai Jinshilin Technologies Development Company Ltd., will join the new TechnoConcepts subsidiary as president and will direct its business operations in China.

TechnoConcepts' Shanghai subsidiary, China Jinshilin Techno Ltd., recently received conditional approval from the Chinese Government for its formation. This subsidiary will provide marketing, sales and technical support for TechnoConcepts' True Software Radio(TM) technology in China. China Jinshilin Techno will also design, market, distribute and provide technical support for Internet Protocol TV set-top boxes (IPTV-STB), and anticipates shipping more than 100,000 units by the end of this calendar year, generating revenue in excess of $15 million (US).

Jinshilin's set top box design was selected by Alcatel after testing prototypes and evaluating numerous alternatives. A technical evaluation by Alcatel of products for this market determined that Jinshilin's IPTV-STB is fully compliant with existing specifications for both the Chinese and European market. Jinshilin's IPTV-STB has also been added to the global procurement system of Alcatel Group for availability in the European IPTV market, where Alcatel Group currently has a 60% share. TechnoConcepts and Jinshilin had been collaborating on this project over the past year.

IPTV set-top boxes provide delivery of digital television programming received from the Internet to conventional audio/video inputs to television sets. The IPTV set-top box market is rapidly expanding in China, with industry analysts projecting between 20 million to 50 million units to be sold in 2006, growing to 60 million to 100 million units to be sold by the end of 2007.