Videolocity International, Inc. (VCTY) Targeted Hydro Company

HENDERSON, NEVADA--(Marketwire - 01/04/11) - Videolocity International, Inc. (PINK SHEETS:VCTY - News)(www.videointernationalcorp.com) identifies the name of the Chinese hydro company as the targeted merger candidate. Company Director Zhou Aixian Chairman said "For months our followers have been demanding the name and details of the Hydro merger candidate and our critics have made some inappropriate remarks regarding the existence of the Hydro company. We do not respond in public to every critic which may have its own agenda, in this case however because we continue to pursue this and other China deals of equal or greater statue we are releasing the name as requested by our North American merger consultants.

The merger candidate, Hubei Xinzheng Hydroelectric Development Limited, was founded in 2003, has a total of 25 staff members, and currently has 60 million RMB Yuan registered capital and 50 million RMB Yuan real capital. See China government link cdm.ccchina.gov.cn/WebSite/CDM/UpFile/File2310.pdf.

Currently, hydroelectric developments and operations are the major business of the company. The Chinese government attaches great importance on, encourages, and provides incentives to, the hydroelectric industry. The principle of the government's hydroelectric development is optimizing hydroelectric power. Developing hydroelectric power, which is a clean energy, will help the underdeveloped areas of China develop their economy and effectively sustain a more ecologically-friendly environment. It is closely related to the sustainable development of the economy and society as well as the long-term benefit of the future generations.

Hubei Xinzheng Hydroelectric Development is a massive project and our corporate consultants have proposed various complex and sophisticated mechanisms to secure the merger and anchor us to this asset. VCTY intends to finalize the sale of ASCC thus be better equipped with bargaining power, and other resources to make a further move; however, nothing is being ruled out just yet.

VCTY looks forward to keeping the investor public updated on a timely basis.

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