chinadotcom Subsidiary Bolsters Asia-Pacific Service Offering
Hong Kong, May 8, 2000
Continuing its global expansion, Web Connection, Asia's leading e-business integrator and a wholly-owned subsidiary of chinadotcom corporation [NASDAQ:CHINA], has today announced its landmark entry into Australia through a strategic partnership and buy-out agreement with leading Australian Internet integration company, XT3.
This transaction marks Web Connection's entry into Australia and also strengthens chinadotcom's existing presence in the market where its online advertising arm, 24/7 Media Asia, already operates.
Through the delivery of hundreds of successful e-business projects since 1995, Web Connection has achieved an unparalleled geographic footprint across Asia-Pacific that boasts eight countries and over 700 professionals. This coverage includes a substantial presence in the US focused on helping US-based multinationals and dot-coms to establish their online presence in Asia.
President and Chief Operating Officer of the Web Connection, Steve McKay, commented, "Our presence in Australia via XT3 will provide local support and best practices to enable Australian companies and others in the region to penetrate the unique, high-growth Asian Internet marketplace - quickly and with confidence.
"XT3 is the ideal partner for Web Connection in Australia. It has an identical client service model and an extremely strong management team of industry veterans. More importantly, we have a shared vision for the combined entity in providing robust e-business solutions to major corporations and dot-coms," said McKay. "As a group, we are pragmatic and trusted guides for companies seeking to established lasting e-business strategies in the region."
For XT3, joining the Web Connection provides the ability to leverage a regional blue-chip client base and significant e-business expertise and Asian market knowledge.
"We had a choice between floating XT3 or going down this route with Web Connection," said Hugh Morrow, Managing Director of XT3. "After careful consideration, we made the judgement that a float would not offer us the advantage of leveraging Web Connection's regional client base and e-business expertise. Joining the Web Connection network gives us the capacity for leadership across the entire region."
Morrow added, "Web Connection recognised XT3's unique value and belief in providing more than just professional services. We work with clients end-to-end, starting with strategy development, moving to design services and software engineering before adding value through marketing and promotion."
In a 1999 study*, the worldwide authority on Internet commerce, Jupiter Communications, expected the number of online households across Asia-Pacific to double in three years. It also predicted that Asia-Pacific's expansion rate of consumers online would exceed that of the US despite continued US growth.
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NOTES TO EDITORS
* From Jupiter Communications report "Globalization: Overcoming Challenges of Geography and Language" by Preston Dodd, Analyst, February 1999.
About Web Connection
Established in Hong Kong in 1995, Web Connection, a chinadotcom corporation subsidiary, offers Internet strategies and solutions for major corporations and dot-coms that recognise the power of the Internet as a business platform and customer relationship management channel. Web Connection brings together a rare blend of core competencies - digital strategy, technology integration, creative design and online marketing - which represents the core ingredients of a winning e-business solution. Major clients include HSBC, GE, Cathay Pacific, Mandarin Oriental Hotel Group, KLM, IBM, General Motors, Samsung and Cisco Systems. The Web Connection has over 700 staff across Asia-Pacific with offices in Hong Kong, China, Singapore, Japan, Taiwan, Korea, USA and now Australia. For more information, please visit www.twc-asia.com.
About chinadotcom corporation
chinadotcom corporation (NASDAQ: CHINA) is a leading pan-Asian Internet company offering web solutions, portal and online advertising services. Through its three business units, chinadotcom is able to provide a full range of Internet services around the Asia-Pacific region 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).
Fuelling the growth of each of these three business units is a synergistic investment strategy that leverages on chinadotcom's existing operational and cost infrastructure.
By partnering with companies that have proven and successful track records, such as Agence France Presse, AOL, Softbank and Trans Cosmos, chinadotcom is well-positioned to create long term shareholder value through its investments.
The company has over 1300 employees in 24 offices across 10 Asian markets, including Japan, Korea, Australia, Hong Kong, Taiwan, Singapore and Malaysia. 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, please visit www.corp.china.com.
XT3 is an Internet integration company providing end-to-end solutions across a range of areas from strategy, design, software engineering and interactive marketing. The company aims to help businesses capitalise on the benefits of Internet technologies from the conceptual stage through to site launch. For further information visit www.XT3.com.au.
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