Hong Kong, April 6, 2000
China Internet Pioneer invests in Two Ground-breaking Internet Companies to Support "Build, Distribute, Sell" Model
— chinadotcom corporation [NASDAQ: CHINA; Website: www.corp.china.com], the leading pan-Asian integrated Internet company, today announced new partnership agreements with two of the Mainland's ground-breaking Internet companies. chinadotcom will acquire 100% of CASTnet, an innovative high-tech software developer, providing Internet and Intranet solutions. Also, chinadotcom has acquired a 35 per cent stake in Stame.com, a virtual community and game world which has proven to be enormously popular in China. These partnerships will expand chinadotcom's capabilities in the "Build" and "Distribute and Sell" aspects of its business model, respectively. The investments will further enhance chinadotcom's growing
e-Commerce service offerings.
Mr. Zhou Shun Ao, Chief China Officer of chinadotcom corporation, said, "we recognize the power of the Internet in bringing great benefits to China's economy. The success of this effort will certainly depend on the ability to build web sites, distribute content over trusted portals, and develop e-business strategies to facilitate the e-commerce boom in China. This is why we are both focusing on making investments to strengthen our 'Build, Distribute, Sell' business model and working in conjunction with government bodies to help China realize its full Internet potential."
Mr. Edward Hsu, Chief Technology Officer of chinadotcom corporation, said, "These partnerships reflect the strong commitment that we have always made in the Mainland. We have been working with both the public and private sectors to develop and enhance Internet services in China since 1996. We now employ over 350 of the most talented Internet professionals in China, and with their drive and ambition, we will continue to work with our partners, such as CASTnet and Stame.com, to create exciting opportunities for the development of the Internet and e-commerce in China."
The investment in CASTnet will expand chinadotcom's e-business solutions presence in the Mainland and will be integrated into the "Build" component of the firm's expanding Internet business. CASTnet's strong human resources and advanced technology enables them to effectively serve high-end customers. CASTnet offers services such as web site registry, web site creation and management, as well as construction and design for specific web sites and vertical portals.
The investment in Stame.com will be made by chinadotcom's online advertising ("Sell") business, 24/7 Media Asia. Stame.com is a Mainland Chinese web site featuring a virtual dog called "Stammer" which visitors can take to an interactive virtual world. Stammer acts as an agent, introducing users to the services offered in its virtual community, "Guigu". Users can browse and choose from a wide range of products and services in Guigu. In addition, Stame.com hosts various stores, recreation areas, chat rooms, online games and instant messaging services. Stame.com will be available through chinadotcom's Mainland portal www.china.com.
Since the launch of stame.com in November 1999, the site has attracted more than 140,000 registered users.
Mr. Hsu added, "As demonstrated by our investments in CASTnet and Stame.com, our activities in China extend way beyond our portal. We are building web sites that are supporting the expansion of e-commerce initiatives by companies and organizations in China. We are also investing in Mainland companies that are creating web solutions. We are advising some of the world's leading multi-nationals as well as local organizations and government bodies on web strategies to strengthen their e-commerce capabilities. And we are developing innovative services to sell products on-line."
"Likewise, we are aggressively investing in the development of technology and content. We now have the best technology infrastructure and are providing quicker, more accessible and more enjoyable Internet surfing for our users in China. The results speak for themselves. The aggregate page views of our Greater China portals stood at 10.2 million at the end of March 2000 with 50% of these views coming from Mainland China. Our China page views have grown 700% over the past three months," continued Mr. Hsu.
"These new investments represent exciting ways for driving users to our portals, increasing stickiness and expanding e-commerce revenue streams. What makes our strategy for China and Asia unique is that we can expand these businesses through our existing cost and infrastructure base. Our existing and extensive sales, marketing and operational expertise and our presence in 12 offices across China can be leveraged to produce successful businesses, built with minimum incremental cost. These are the fundamentals underpinning any successful long-term business strategy," added Mr. Zhou.
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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