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Global China Technology Group Reaches Out * * * * * * * * * * * * * * * * * * (Hong Kong; September 25, 2000) Global China Technology Group Limited (HKSE: 1105) ("Global China") today signed an agreement with San Lian Group, a leading provider of broadband technology and information service in Shandong, and China Shandong Group Limited, a window company of Shandong provincial government in Hong Kong, to form a joint venture in the sector of high technology. The new company will develop Beelink.com, broadband technology and consulting business in China. The agreement reinforces Global China's long term commitment to high growth technology business in the country. Upon final approval from Mainland authorities, Global China will have a 40% stake in the joint venture. San Lian Group and China Shandong Group Ltd., on the other hand, will own 50% and 10% of the new company respectively. Global China will invest HK$240 million in the project, in which HK$94 million will be allocated specifically in the joint venture. The joint venture will provide comprehensive technical support which covers R&D, production and sales of network products and software applications, system integration, IT consulting, training and support services, to San Lian's existing operations. San Lian Group now operates an advanced optical fibre network in Jinan, Shandong. The joint venture will specifically develop technologies and products for the use of Beelink.com, the country's first broadband multimedia portal. It will gradually expand its services to other regions at a later stage. "China's imminent entry into the World Trade Organisation and its tremendous economic growth potential provide our Group an excellent opportunity to develop hi-tech business there," said Mr. Charles Ho, Chairman of Global China Technology Group Ltd. "San Lian Group, having foreseen the tremendous growth potential of broadband information network, pioneered the construction of the first optical fibre network in Jinan city, Shandong, as early as 1995. In 1998, San Lian launched the country's first commercial broadband multimedia portal, Beelink.com. The collaboration among Global China, San Lian and China Shandong Group means much more than a technology exchange. It underpins the determination of the three parties to develop information industry in China." "San Lian's broadband and multimedia technologies have met international standards after years of R&D, " Mr. Zhang Ji-sheng, Chairman and President of San Lian Group said. "Upon final approval by Mainland authorities, San Lian can leverage state-of-the-art technology from the joint venture to enhance the facilities and technology level of the Group's broadband information network and Beelink.com. The seasoned professionals of Global China, who are experienced in information network and multimedia technology, as well as sales and marketing of related products and services, will greatly help us strengthen our market position." "China Shandong Group is a large corporation under the direct supervision of Shandong provincial government. As the window company of Shandong government in Hong Kong and as a strategic investor in the joint venture, we will help smooth the running of the company, facilitate the liaison with various government departments and strengthen the communications between all parties involved. We have full confidence in the future development and the listing plan of the joint venture," remarked Mr Fei Yunliang, Chairman and President of China Shandong Group. San Lian Group is one of the first fibre optical network infrastructure providers in China. It started constructing fibre optical network in Jinan in 1995. The network now covers 70% of Jinan city, providing 10Mbps, 100Mbps and 155Mbps dedicated broadband connection to 30,000 households. Registered users of San Lian's network reach 8,000, representing 30% of the city's network users (including dial-up users). There are also over 4,000 users currently on the waiting list for connection. On top of the city-wide broadband network, San Lian Group launched its first multimedia portal Beeklink.com (www.beelink.com.cn) in 1998. Making use of the network's high speed transmission, Beelink.com provides multimedia contents such as real time finance data, news, education, technology, entertainment as well as e-commerce services to its users. The Group is now actively developing Chinese broadband software applications, aiming to provide on-line services like VOD, real time transaction and distance learning. Registered users of Beelink.com reach 250,000, and the portal records an average daily page view of 600,000 to 800,000. "Our co-operation with San Lian and China Shandong Group is a milestone in our strategy to develop high technology projects in Mainland China. With our extensive business networks in China and overseas, together with the support of our various business partners, Global China will continue playing the role of both an operator and investor. We will continue exploring projects related to broadband, multimedia content and e-commerce to bring the best returns to our shareholders," Mr. Ho concluded. About Global China Technology Group Ltd. Global China Technology Group was formerly known as Perfect Treasure Holdings Ltd. In addition to sales of audio-visual, electronic and telecommunication products, the Group is actively expanding information technology and Internet business. About San Lian Group San Lian Group was one of the eight key enterprises enjoying special support from the Shandong provincial government during the "Ninth Five-year Plans" programme. The Group was classified as a Grade One corporation operating on a share holding basis. With over 7,000 R&D professionals and a total staff force of 30,000, the Group has a registered capital of RMB"700 million and net assets of RMB"3 billion. Currently, there are over 160 local and overseas companies under the direct management of 11 highly specialized subsidiaries of San Lian Group. The Group has achieved international standards in its various streams of investments which include commerce, trade, tourism, real estate, electronic information service, catering, construction materials, as well as oil machinery manufacturing. About China Shandong Group Ltd. Established in October 1985, China Shandong Group Ltd. is a state-owned enterprise under the direct supervision of Shandong provincial government in China. The Group is also the window company representing Shandong government in Hong Kong. With total assets reaching RMB"2 billion, the Group's businesses include chemistry industry, trading, investment, catering, advertising, real estate, travel, and information service. As a window company in Hong Kong, the Group has been contributing to the development of Shandong province through joint ventures and co-operations with multinational corporations and companies from Hong Kong and Macau over the past 15 years. Media Enquiry: Miss Anita Ko/Miss Ingrid Cheng |