HAINAN, China--(BUSINESS WIRE)--Oct. 21, 2005--TS Electronics, Inc. (OTCBB:TSET) announced today the closing of a stock exchange transaction with Onny Investments Limited, a British Virgin Islands company (“ONNY”). The companies will operate on a consolidated basis, executing upon the current business plan of ONNY’s wholly-owned subsidiary located in the People’s Republic of China (“PRC”). Immediately preceding the consummation of the exchange transaction, ONNY closed a private placement of securities whereby it issued an aggregate of 10,000 convertible preferred shares for gross proceeds of $5 million, or $500 per share. As a result of the share exchange transaction, ONNY’s stockholders, including participants in ONNY’s private offering, were issued 27,499,940 shares of TS Electronics’ common stock. As a result of the exchange transaction, Ms. Heung Mei Tsui was appointed to the Board of Directors of TS Electronics and senior management of ONNY was elected as executive officers of TS Electronics upon the resignation of the company’s sole executive. TS Electronics’ shares are listed on the Over-the-Counter (OTC) Bulletin Board under the symbol TSET.OB.
