Hong Kong, July 21, 2000
Third Initiative Announced Under chinadotcom's Multi-Pronged Wireless Strategy to Connect to the Lucrative Mobile Phone Markets
— chinadotcom corporation [NASDAQ: CHINA; Website: www.corp.china.com], the leading pan-Asian integrated Internet company, today announced that it has entered into an agreement with InfoisLive.com Ltd. (InfoisLive) [URL http://infoislive.com] regarding the formation of a joint venture (JV) - of which chinadotcom corporation will be the majority stakeholder - to market InfoisLive's innovative wireless products and services in Japan, Korea, China and the USA. The JV will accelerate chinadotcom's drive into these lucrative and expanding mobile phone markets by leveraging the company's existing pan-Asian operational and cost infrastructure base. This existing infrastructure base will allow for the rapid roll-out of new services to secure early revenues to be derived from the WAP and wireless markets, without incurring many of the costs often associated with establishing new services across the region.
chinadotcom sees great business potential in these markets that it is tapping into. For example, in the Japan mobile phone market, growth is being driven more and more by mobile Internet, with mobile data subscribers accounting for a significant 18% of total mobile subscribers. Japan's trend-setting NTT DoCoMo introduced its mobile data and Internet service called i-mode service 18 months ago and have not been able to keep up with the demand, enrolling 7.3 million subscribers in that period, according to Lehman Brothers.
This JV comes on the heels of InfoisLive's announcement that it has joined the Nokia Artus Developers Program (NADP), a Nokia-sponsored program that provides wireless application developers with early access to application development environments, tools, and expertise combined with co-marketing support. InfoisLive is the first member of NADP in Hong Kong to bring WAP applications onto the market.
The announcement of this JV marks the third Wireless-related initiative that chinadotcom has made since the past month. In June, chinadotcom's subsidiary, hongkong.com Corporation, entered into an agreement with New World Mobility, a leading mobile phone operator in Hong Kong, to allow its WAP mobile phone users to link to the content of wap.hongkong.com. This automatic linkage will make available to New World Mobility's customers the rich content, community and commerce services of hongkong.com, which include more than twelve '4U' community products such as WAP4U, Points4U, Mail4U, Search4U, Home4U, and Auction4U. Other products and services expected to come online in the near future include Business4U, Space4U and Profile4U. On July 7, 2000, chinadotcom announced an agreement to provide Siemens WAP phone customers in China with access to chinadotcom's network of portals.
InfoisLive is a leading Wireless Application Services Provider based in Hong Kong and has developed Wireless applications such as:
P Moffy - A WEB/WAP synchronized personal information manager with email, address book, calendar and bookmarks.
P GameisLive - Asia's first WEB and WAP cross platform multi-user game engine. Most games on gameisLive are interactive games - one can play with other players across different platforms interactively.
P 5390 - A WEB/WAP community platform with a sophisticated set of people-to-people applications, including instant messaging, email, forum and voting.
P ShopisLive - A WAP shopping mall with features such as showrooms, coupon systems and credit-cash. It was created to cater for the emergence of m-commerce.
P Yazimi - A Tamagochi-like WAP pet. Users can raise their pets (functions include feeding, playing, etc.) with a WAP phone anytime, anywhere. Yazimi version 1.0 has been formally launched by a mobile operator in Hong Kong. With version 2.0, soon to be released in August, interactive features will be introduced which allow
users to have their WAP-pets play, compete, fight, etc. with other WAP-pets.
Jack Lin, Chief Investment Officer of chinadotcom ventures Inc., said "This JV is a great example of how we're increasingly leveraging the minority investments that we have made over the last twelve months. Although we are already the single largest corporate shareholder of InfoisLive, our formation of this JV further strengthens the collaboration between the two companies. These initiatives reinforce our commitment to driving and harnessing the growth of the Wireless market through leveraging off our cost and operational infrastructure. By supporting the development and marketing of innovative wireless applications for the rapidly expanding mobile phone user market, we are speeding up market acceptance and revenue generation for our business."
Said Kin Ko, CEO of InfoisLive.com, "The Nokia Artus Developers Program membership is a significant reinforcement of chinadotcom's and InfoisLive's first mover status in developing Wireless applications. We are excited to be playing a part in stimulating the development and usage of Wireless applications for the industry. Through our new JV, chinadotcom's dominant online advertising presence in more than 10 pan-Asian markets will speed both the success of our Wireless products in gaining market acceptance and the generation of revenues."
In March this year, chinadotcom acquired a 30% stake in InfoisLive.com and became its largest corporate shareholder. Through InfoisLive, chinadotcom and its subsidiaries possess the technology to provide leading-edge Wireless applications through different media, both mobile and non-mobile. These media include WAP phones, Personal Digital Assistants (PDAs) and WebTV.
About chinadotcom corporation
chinadotcom corporation (NASDAQ: CHINA; Website: www.corp.china.com) is a leading pan-Asian 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 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 nearly 2,000 employees in 28 offices across more than 10 markets,
including Japan, Korea, Australia, Hong Kong, Taiwan, Singapore, Malaysia, Thailand,
and the USA. In Mainland China, the company has 13 offices and over 550 employees. For more information about chinadotcom corporation, please visit www.corp.china.com
About Nokia Artus Developers Program
The Nokia Artus Developers Program is a set of valuable tools for valued partners. It consists of six programs: 1. Up-to-date information --Nokia delivers you the most up-to-date information on evolving technologies and markets; 2. VAS Forum - a partner web-site where you can find up-to-date product, technology and market information as well as interactive demonstrations, simulations and technical support. The VAS Forum database is the broadest source of Nokia partner information, and is visible to Nokia Telecommunications' customer operators; 3. Tools for development - Nokia provides concrete demonstrations of partner applications. Depending on the particular services there is a possibility to link developed demonstrations into a real environment. In addition, Nokia offers a WAP Toolkit to help with service development; 4. Developer support - Nokia offers you expert technical support in development activities; 5. Co-marketing - Co-marketing activities include conferences, customer presentations and a partner catalogue listing partners in the VAS Forum who have already established a demonstration with us; and 6. Other activities - Other forms of cooperation, such as participation in WAP trials, are also possible.
As of now, there are over 400 Nokia partners enrolled in this world-wide program.
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 and annual report, as filed with the United States Securities and Exchange Commission.
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