Exhibit 99.1
Superconductor Technologies Signs Definitive Agreement for Joint
Venture With Hunchun BaoLi Communications
New Entity Will Manufacture and Market SuperLink Solutions in
China
SANTA BARBARA, Calif., Nov. 9, 2007 (PRIME NEWSWIRE) --
Superconductor Technologies Inc. (STI) (Nasdaq:SCON), a leading
provider of high performance infrastructure products for wireless
voice and data applications, announced it signed a binding
definitive agreement for a joint venture with Hunchun BaoLi
Communications Co. Ltd. (BAOLI) to manufacture and market STI's
SuperLink(r) interference elimination solution for the China
market. The joint venture will be called Hunchun BaoLi
Superconductor Technology Co. Ltd. (HBST) and will be registered in
Jilin Province. Products will be manufactured initially in Shenzhen
and ultimately in the Commercial Cooperation Zone located in
Hunchun City, Jilin Province. The sales and marketing division will
be based in Shenzhen.
"This
new joint venture combines our extensive track record as a
wireless communications solutions provider with STI's field
proven capabilities in eliminating interference and increasing
base station sensitivity," stated QiangHua Shao, General
Manager of BAOLI. "We believe our partnership with STI will
enable cost reductions on a scale that makes SuperLink(r)
competitive in the Asian marketplace. We will now forge ahead
with our plans to capitalize on the benefits of combining
STI's technology and our manufacturing and supply chain
capabilities."
"This
agreement represents a major milestone in STI's strategy to
expand its target markets and capitalizes on the progress we
have made validating our solutions with the major North
American carriers," said Jeff Quiram, STI's president and CEO.
"The unique advantages our technology offers are particularly
well-suited to solve the interference and filtering challenges
of China's 2G and 3G networks. STI is honored to be partnering
with BAOLI to supply China's wireless market with solutions to
optimize network performance."
Under
the terms of the agreement, STI will provide an exclusive
license in the China market of the enabling technology and
BAOLI will provide the manufacturing expertise and
financing.
BAOLI
holds 55 percent of the equity in the joint venture. STI holds
45 percent and will receive a royalty on sales. The details of
the royalty payments and the licensing terms were not
disclosed.
BAOLI
and STI have already started working with China's Ministry of
Information Industry and related organizations, including the
National Radio Administrative Bureau, to conduct technical
evaluations and testing activities in China and with Chinese
wireless operators such as China Telecom, China Mobile,
Netcom, Unicom Railcom and Satcom.
Investment Agreement Terms Modified
STI
and BAOLI have revised the terms of their $15.0 million
investment agreement announced on Aug. 22, 2007. The economic
terms of the transaction are not intended to change, with
BAOLI still investing a total
