Hong Kong, March 17, 2000
Technology Consulting and Acceleration for Internet Companies Entering Asia
— chinadotcom corporation [NASDAQ: CHINA; Website: www.corp.china.com], the leading pan-Asian Internet company, has signed a Memorandum of Understanding with Softbank Investment Strategic today to create a new 50/50 joint venture company. The joint venture company will provide business and technology consulting services. On the business level, it will advise and assist Internet companies who are keen to expand in Asia through strategic partnership or joint venture, and on the technology level, through chinadotcom's wholly-owned subsidiary, the Web Connection, to provide offline to online consulting and Internet related solutions.
chinadotcom and Softbank Investment Strategic have agreed to create the new venture through a share swap agreement. Following on the MOU, a definitive agreement will be signed on 31 March 2000. The partnership will leverage both chinadotcom and Softbank Investment Strategic's experience and expertise in cultivating new Internet businesses. The two companies will work together to invest in and assist new and high potential companies as they enter and expand in the Asian online market. This alliance extends chinadotcom corporation's operations, specifically technology consulting services including offline to online consulting and Internet related solution requirements, with unparalleled reach and access to the Japanese market, while broadening Softbank Investment Strategic's market coverage into Asia.
"We are excited about this joint venture agreement and are looking forward to shaping the new company into a dynamic, investment-driven vehicle for promising Internet businesses," said Mr. Peter Yip, Chief Executive Officer of chinadotcom corporation. "There is great synergy between the two companies, as both chinadotcom and Softbank Investment Strategic are dedicated to making investments through incubating and accelerating the development of new and existing Internet businesses."
Mr. Junichi Goto, President of Softbank Investment Strategic said, "We are very honoured to partner with chinadotcom corporation. Having launched their operations in 1997, chinadotcom has established themselves as the pioneer in our industry in Asia. Since then, they have been able to expand their scope and reach throughout the region to become not only the pioneer, but also a leading Asian integrated Internet company."
During the past month, chinadotcom has secured partnerships with two Internet conglomerates in Japan - TransCosmos and Softbank Investment Strategic, as the company continues to solidify its position as the leading pan-Asian integrated Internet company.
The joint venture will give both companies a leading edge in their respective markets. Mr Yip continued, "Our joint venture with Softbank Investment Strategic, coupled with our recent partnership with TransCosmos, represents a significant strengthening of our presence in Japan. These complementary ventures further augment our position as the leading integrated pan-Asian Internet focused company."
*Note: Cheung Wah Development Company Limited (to be renamed Softbank Investment International (Strategic) Limited)
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. 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. To date, through our investment program, chinadotcom corporation has invested in 30 Internet companies around the world.
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 Softbank Investment Strategic
Softbank Investment Strategic, a subsidiary of SOFTBANK FINANCE CORPORATION which in turn is a wholly-owned subsidiary of SOFTBANK CORP. SOFTBANK CORP. has gained premiere market positions in most internet space and manages an impressive network of operating companies as well as an unparalleled portfolio of internet-related ventures. SOFTBANK FINANCE CORPORATION is the holding company for most of SOFTBANK CORP's finance-related business and also invests in and provides consultancy services to the conversion of non-internet businesses into internet businesses.
Softbank Investment Strategic will be carrying out the operations for the transformation of non-internet businesses into internet businesses in the Asia region and at the same time will also assist renowned internet companies to expand their operations into this region.
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