NextMart Further Divests of Supporting Investments in Order to Focus on Women's Apparel Business

NextMart Inc. (OTC
Bulletin Board: SNMD), an online trade media and merchant company today
announced that its NextPay business subsidiary, a commercial payment
services provider, has received a conditional commitment from a Hong
Kong-based fund to invest up to $12.8 million. The structure of the
financing deal is subject to government approval and the deal completion is
subject to the finalization of NextPay's business plan.
As a result of the agreement, NextMart's equity stake in NextPay will
become heavily diluted. The Company will become a minority shareholder in
NextPay, relying on it only for back-end payment facilitation of NextMart's
online wholesale distribution and retail shopping businesses.
Going forward, NextMart will not bear any hard costs associated with
running the NextPay business. Instead, it will retain marketing rights to
NextPay's marketing channels - namely the digital LCD screen on the
bank-card enabled telephones that NextPay distributes - and the right to
access NextPay's customer database for marketing its own online wholesale
distribution and retail shopping businesses.
Dr. Bruno Wu, Chairman and CEO of NextMart Inc. commented, "Pending
government approval of this agreement, NextPay will obtain the sturdy
capital base it needs to grow its operations nationwide. The agreement also
relieves NextMart of capital-intensive businesses and helps the Company
further divest of operational costs. NextMart is increasingly focusing
efforts on growing its core brand management and women's apparel production
business in Shanghai. We are confident that this is the path to profitable
growth in fiscal 2008."
About NextMart Inc.
NextMart is an on-line trade media and merchant company that builds
direct-buyer communities and services them with digital media offerings,
on- line exhibitions and customer loyalty programs. NextMart also builds e-
enabled distribution systems, transaction platforms and business
communities in fast growing Chinese vertical markets, connecting buyers and
sellers with a suite of turnkey digital media, e-commerce, and information
management solutions. Companies leverage NextMart's web-based business
media communities to access vital industrial intelligence and forge trading
relationships with suppliers and buyers that promote cost efficiencies and
increased distribution reach. Learn more at http://www.sunnewmedia.net.
This press release includes statements that may constitute 'forward-
looking' statements, usually containing the word 'believe,' 'estimate,'
'project,' 'expect,' 'plan,' 'anticipate' or similar expressions. Forward-
looking statements inherently involve risks and uncertainties that could
cause actual results to differ materially from the forward-looking
statements. Factors that would cause or contribute to such differences
include, but are not limited to, continued acceptance of NextMart's product
and services in the marketplace, competitive factors and changes in
regulatory environments. These and other risks relating to NextMart's
business are set forth in NextMart's Annual Report on Form 10-KSB filed
with the Securities and Exchange Commission on June 30, 2006, and other
reports filed from time to time with the Securities and Exchange
Commission. By making these forward-looking statements, NextMart disclaims
any obligation to update these statements for revisions or changes after
the date of this release.
Contact
Nicholas Topjian, VP Corporate Affairs
ir@sunnewmedia.net
+917 573 9429