Hong Kong, February 23, 2000
chinadotcom corporation to create JV with Japan's Trans Cosmos
— chinadotcom corporation [NASDAQ: CHINA; Website: www.corp.china.com], the leading pan-Asian Internet company, has signed a definitive agreement with Trans Cosmos Inc of Japan, to create a new 50/50 joint venture company to enable established global Internet companies to accelerate and expand their businesses into the Asian market. The new company will be based in Hong Kong.
The joint venture partners have agreed to provide the new venture with an initial funding of US$50 million in capital.
The aim of the joint venture is to combine and leverage Trans Cosmos' track record and experience in cultivating new Internet businesses with chinadotcom corporation's unique "Build, Distribute, Sell" Internet business model. It will enable the two companies to work together to bring more cutting-edge Internet brands to the Asian online community, straight from the original content and software developers based in more mature Internet markets. The alliance will further strengthen chinadotcom's existing operations in Japan, while extending Trans Cosmos' reach across Asia.
Trans Cosmos has already developed over 20 joint ventures with leading North American Internet and multimedia brands to introduce their technologies to Japan. These include, Net Perceptions, autobytel.com, NetRatings, AboveNet and Liquid Audio.
"We are delighted to be working with Trans Cosmos through this joint venture. Trans Cosmos has an extensive portfolio of over seventy investments in leading-edge Internet technology companies in the US which we can look forward to incubating and developing throughout Asia. There are great synergies between our two organisations. We are both operating companies with an investment focus;- making investments in the incubation and development of new Internet businesses. chinadotcom has applied this focus and its 1,000 employees to developing such businesses in Greater China and Asia, while Trans Cosmos' 4,000 strong team has adopted a similar approach in Japan", said Peter Yip, Chief Executive Officer of chinadotcom corporation.
Over the last 12 months chinadotcom has made over 30 investments in Asian Internet companies, including partnerships with The Big Store.com, Nirve.com and Agence France Presse. The alliance with Trans Cosmos will increase the potential for those partnerships to develop their businesses in Japan.
Another significant synergy and potential benefit of the alliance will result from combining chinadotcom's Asia-wide presence with Trans Cosmos' experience and expertise in the application of double-byte technologies in Japan. Double-byte technology allows Asian language content to be developed for the Internet. The joint venture will seek ways of utilizing Trans Cosmos'and chinadotcom's experience in applying double-byte technologies in Japan and China respectively to allow local-language content to be developed and introduced into all the Asian markets covered by chinadotcom's Asian network.
Trans Cosmos, headquartered in Tokyo, was established in 1966 as a network and systems integrator, and was an early-mover in evolving to focus on Internet, intranet and e-commerce solutions development. It also founded EnCompass Inc, a highly successful IT-focused venture capital company in the United States.
"The potential of this partnership is vast," said Koki Okuda, Chairman, President and CEO of Trans Cosmos. "Our objective is to continue our pioneering and successful investment strategy with the help of chinadotcom corporation and its regional network. We are going to introduce a wealth of new technologies to our mutual clients, as well as jump start new Asian Internet companies."
About chinadotcom corporation
chinadotcom corporation (NASDAQ: CHINA) is the leading pan-Asian Internet company built on an integrated operating and investment business model. The company provides a full range of Internet services that; 1) build e-business strategies and solutions (Web Connection), 2) distribute content via its portal network (china.com, cww.com, hongkong.com, and taiwan.com), and 3) sell services through online advertising (24/7 Media Asia).
chinadotcom corporation also invests in synergistic internet companies throughout the Asia-Pacific region that add value and depth to its services and portal channels. chinadotcom corporation's investment strategy is largely based on three types of investments. The first, incubation - through chinadotcom corporation's Jump Start program - supports seeding of new companies and incubates Internet start-ups. For example, chinadotcom corporation's investment in, and development of, looks.com has created a highly popular Asian beauty and fashion on-line retailer. The second, acceleration, builds on existing businesses and accelerates the growth of existing on-line services, while the third category of investments, partnership, enables chinadotcom corporation to join with established Internet companies to accelerate and expand their entry into the Asian market.
chinadotcom corporation is committed to enabling digital communities to realize their full potential, thereby facilitating the development of the Internet in China and across Asia. The company has over 1000 employees in 24 offices across 10 Asian markets, including Australia, Hong Kong, Japan, Korea, Malaysia, Singapore and Taiwan. In Mainland China, the company has nine offices and over 300 employees. Major corporate shareholders include America Online Inc., Mitsui & Co. Ltd., Nortel Network Corporation, Sun Microsystems Inc., New World Infrastructure Limited and 24/7 Media Inc. For more information about chinadotcom corporation, please visit www.corp.china.com.
About Trans Cosmos
Established in 1966, Trans Cosmos is a leading force in the Japanese Internet sector having introduced many state-of-the-art network, telecommunications and multimedia technologies into Japan.
In 1995, it founded EnCompass Group Inc, a joint-venture with Nikko Shoken Group, which has operated or invested in more than seventy high-tech venture companies in the USA.
In June 1999, Trans Cosmos introduced its Web Commerce service - an integrated e-commerce solutions service for companies wishing to trade over the Internet.
In Japan, the company has also strategically invested in technology companies serving various vertical sectors. Namely:
autobytel Japan K. K. - Internet-based information for automobile sales and brokerages
Wit Capital Japan Inc. - an online Internet investment bank
Net Perceptions Japan, Inc. - a vendor of online marketing solutions.
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