GPS Industries, Inc. has announced that its Asian distributor, GPSi Asia Pte. Ltd., has entered into an exclusive distribution agreement for China with the Shanghai Hangying Culture Media Ltd. doing business as GPS Media.
GPS Media, based in Shanghai and with offices in Beijing and Shanghai, is a GPS provider to golf courses in China with a business model that includes advertising on the GPS units.
GPS Media’s exclusivity is based upon purchasing 1,200 units per year or 6,000 units over five years. GPS Media’s sales target is for a total of 10,000 units over the same period.
Assuming that GPS Media is able to fulfill the minimum commitment over the term of the contract, the exclusive arrangement represents the largest single agreement in the GPS golf industry and would provide the Inforemer GPS golf management system to over 100 golf courses in China, the fastest growing golf market in the world.
An initial purchase order has already been received by GPS Industries from GPS Media for the immediate purchase of 600 units for seven leading golf courses in China.
Another twelve golf courses are already under contract with GPS Media which will immediately follow the initial installation of the first seven golf courses with the installation of an additional 1,000 GPS units. Upon completion of the installations, GPS Industries will be the largest provider of cart mounted GPS golf systems in Asia.
Ms. Lily XU, the senior general manager of GPS Media said, “After all of our due diligence, we concluded that GPS Industries holds the superior technology in the industry, mature service network in China and sustainable development ability. GPS Media’s mission statement is to offer the most sophisticated product to our golf course customers. We are extremely pleased to work with the team at GPS Industries.”
David Chessler, the new chief executive officer of GPSI said, “This Agreement validates our leadership in technology in the GPS golf business. GPS Media’s business plan is based upon advertising revenue generated on our cart-mounted display. GPS Media choose GPSI because of our superior technology, performance and functionality. Our intellectual property surrounding our on screen media advertising will separate GPSI as the leader in the GPS media market place. We are really excited about our relationship with GPS Media and the long term partnership we will build over the next few years.”
GPSi Asia Pte. Ltd. is the exclusive distributor for GPS Industries in Asia and is the leading supplier of GPS systems throughout all of Asia and will continue to work with GPS Media in China for the installation, service and advertising under this new Agreement.
GPS Industries, Inc. www.gpsindustries.com
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