Hong Kong, July 14, 2000
chinadotcom Relaunches www.taiwan.com Website
— chinadotcom corporation [NASDAQ: CHINA; Website: www.corp.china.com], the leading pan-Asian integrated Internet company, today filed legal proceedings in Taiwan against its former partner CMC Magnetics Corporation (CMC) and its subsidiary Taiwan Dakang (TD) seeking repayment of US$2 million in loans after terminating an investment contract signed in 1999 among chinadotcom, CMC and TD.
Under that investment contract, CMC agreed among other things not to compete with the business of the chinadotcom-owned www.taiwan.com portal.
After many failed attempts at resolving differences with CMC and TD, and because of their continuing nonperformance and breach of their contractual obligations, chinadotcom found it necessary to protect shareholder value by terminating the investment contract and to seek repayment of its investment. CMC and its subsidiary TD have since been relieved of their management responsibilities at the www.taiwan.com portal, but continue to operate competing websites in Taiwan. Legal proceedings were filed against CMC and TD for repayment of US$2 million in loans. chinadotcom is also considering other remedies against CMC for its breach and nonperformance of the investment contract.
It is chinadotcom's view that the steps taken today were necessary so as to provide an environment for continued sound management of a key part of the chinadotcom portal network. chinadotcom is keen to ensure that its portal network provides the best local content and services tailored to local users.
On July 13, 2000, chinadotcom corporation relaunched its portal www.taiwan.com with a newly designed look and feel to be more in keeping with other members of the chinadotcom network of
portals, china.com, cww.com and hongkong.com - all leading portals in their respective markets.
As part of this new look and feel, all content, community and e-commerce services will be deepened for a richer, more compelling user experience at the www.taiwan.com portal. chinadotcom currently has other partners in Taiwan and are committed to developing partnerships that create synergies for the chinadotcom portal network.
About chinadotcom corporation
chinadotcom corporation (NASDAQ: CHINA) is a leading pan-Asian integrated Internet company offering web solutions, portal and online advertising services. Through its three business units, chinadotcom provides 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 America Online, Softbank, Trans Cosmos and Agence France Presse, chinadotcom is well-positioned to create long term shareholder value through its investments.
The company has almost 2,000 employees in 24 offices across more than 10 markets, including Japan, Korea, Australia, Hong Kong, Taiwan, Singapore, Thailand, Malaysia, and USA. In Mainland China, the company has 12 offices and over 550 employees. For more information about chinadotcom corporation, please visit www.corp.china.com.
Safe Harbor Statement
The statements in this news release, other than the historical financial information, may contain forward-looking statements that involve risks and uncertainties that could cause actual results to differ from anticipated results. Further information on risk factors that could affect chinadotcom corporation's results of operations is detailed in chinadotcom corporation's registration statements, as filed with the United States Securities and Exchange Commission.
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