Hong Kong, April 6, 2000
— chinadotcom corporation [NASDAQ: CHINA] (website www.corp.china.com), the leading pan-Asian Internet company, has signed a definitive business agreement with Softbank Investment Strategic for a US$20 million share swap. In addition, the two parties have also agreed to set up a 50/50 joint venture company to provide business and technology consulting services to Internet companies seeking to expand their business operations in Asia through joint ventures or partnerships.
chinadotcom has agreed to swap 200,722 new class A common share par value US$0.0005 each for 21,538,035 new ordinary shares of Softbank Investment Strategic at HK$0.10 each, subject to certain conditions, including the agreement by the two companies of a form of joint venture contract. The transaction represents an exchange of approximately US$20 million worth of chinadotcom shares for an equivalent value of Softbank Investment Strategic shares, based on the average closing price of the shares of these companies over a ten day period ending March 30, 2000.
chinadotcom's Chief Executive Officer, Peter Yip, stated "this joint venture will provide a conduit for channeling our resources and expertise to invigorate new Internet businesses, and supports our business strategy of leveraging our business model in the Japanese market. I am enthusiastic about the high margin services that
can be provided to the maturing digital communities of Japan, and the opportunity to deliver economic value to our shareholders."
"Our alliance with Softbank is a perfect example of how to leverage our infrastructure and cost base across Asia with a partner that has a proven track record of developing successful businesses: - leveraging our existing sales, marketing and operational expertise through our 24 offices across the region reduces the high costs involved with establishing new businesses from the ground up, whilst working with a partner with a proven track record improves the prospects for developing healthy revenue streams for the joint venture. These are clearly the fundamental principles underpinning any successful business strategy," added Mr. Yip.
chinadotcom's integrated business model includes an "Invest" component, incorporating Internet incubation, acceleration, and partnership. Incubation is driven by chinadotcom's Jump Start program, which provides investment and operational expertise to Internet start-ups whose content or services provide a strategic fit with chinadotcom's business units. Once an investment is made, these Internet firms utilize chinadotcom's web consulting and online advertising services to develop their Web presence and brand awareness. With respect to this synergistic model, chinadotcom's joint venture with Softbank Investment Strategic allows chinadotcom corporation's businesses to further penetrate the Japanese Internet market.
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 over 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 12 offices and over 350 employees. Major corporate shareholders include America Online Inc., Mitsui & Co. Ltd., Nortel Network Corporation, New World Infrastructure Limited and 24/7 Media Inc. For more information about chinadotcom corporation, please visit www.corp.china.com.
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