Hong Kong, July 24, 2000
Partnership to Build e-Commerce Infrastructure
— chinadotcom corporation [NASDAQ: CHINA; Website: www.corp.china.com], the leading pan-Asian integrated Internet company announced today the formation of a strategic 50/50 joint venture (JV) with CCIDNet.com [Website: http://www.ccidnet.com], the leading Greater China Information Technology (IT) products & services Internet company under the auspices of China's Ministry of Information Industry (MII), aimed at accelerating the development of a B2B
e-Commerce infrastructure in China.
The JV with CCIDNet.com is a software and application service provider (ASP) for business to business (B2B) markets that enables market makers and corporations to perform online business transactions. It is expected that vertical electronic markets will emerge in sectors such as heavy machinery, computer equipment, petrochemical products and others. The JV will be managed by a board of six directors, with each party to the JV naming three directors. The CEO of the JV will be jointly named.
Under the terms of the JV, CCIDNet.com will contribute its efforts in promoting and marketing the usage of the B2B transaction platform, obtaining necessary permits and licenses, and enlisting the continuing support of the MII. chinadotcom corporation will contribute technological expertise,
capital and its experience in the Internet market. The JV is a demonstration of chinadotcom's continuing efforts to work with the Chinese government. The JV will accelerate chinadotcom's drive into the growing B2B e-Commerce market in China while leveraging the company's existing pan-Asian operational and cost infrastructure base.
CCIDNet.com is a government authorised organisation under MII of China and is a subsidiary of CCID (The Center of Computer & Microelectronics Industry Development). CCID is tasked in developing as well as formulating national related IT and Internet development plans, policies and regulations in China. CCID's business arm operates the largest IT service organization in China and is a majority shareholder of CCIDNet.com. As for MII, it is responsible for overseeing China's information technology, telecommunications and software industries and provides research, IT industry-related strategy, policy guidance and overall planning for these sectors.
This JV announcement is chinadotcom's recent second initiative to work with the Chinese government and its state-owned enterprises. Last week, chinadotcom announced the acquisition of the exclusive franchise to distribute e-travel products and services of China Travel Services (CTS), the leading state-owned travel agency in China, through a majority investment in chinaholiday.com, the leading Mainland China B2B travel platform which has the exclusive online franchise.
Said Peter Yip, Chief Executive Officer of chinadotcom corporation, "This B2B-ASP JV helps China's e-commerce industry leapfrog into a state of the art industry, leveraging off the rapidly growing ranks of Internet users in China. We are proud to expand our mutually beneficial relationship with government backed organizations. We expect to continue this co-operation with groups responsible for and supporting the development of the Chinese Internet infrastructure, such as MII and its related organisations like CCIDNet.com and many others."
Ms. Li Ying, Chief Executive Officer of CCIDNet.com, said, "We are happy to partner with a market leader like chinadotcom. With chinadotcom's proven success in the industry and
CCIDNet.com's local market expertise and familiarity with local regulatory requirements, we have confidence that this JV will play a major role in driving the expansion of e-Commerce in many key industries in China."
Prior to this JV, chinadotcom made an investment in CCIDNet.com, reflecting its confidence in CCIDNet.com and its management. Having built an IT professional user base of over one million and a commercial subscriber base of over 10,000, CCIDNet.com has laid the foundation for building an online B2B platform for e-Commerce which it believes will eventually be widely deployed in the IT industry.
Mr. Yip said, "CCIDNet.com's technological and market position in the e-Commerce space is growing and has the potential to dominate the market. Our investment in CCIDNet.com is timed to contribute to its efforts to rapidly drive the explosive growth of e-commerce in China over the next couple of years."
Ms. Li Ying of CCIDnet.com, said, "Based on CCIDNet.com's recently completed e-Consulting survey, the e-Commerce market is in its growth phase, and market predictions are that it will increase significantly in the near future. We expect to play a significant role in building the infrastructure for e-Commerce and building the bridge between the new and the old economies. We are confident that this partnership with chinadotcom will have the potential to produce significant benefits for both companies."
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 platform (china.com, cww.com, hongkong.com, and taiwan.com), and 3) sell services through online marketing (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 28 offices across more than 10 markets, including Japan, Korea, Australia, China, Hong Kong, Taiwan, Singapore, Thailand, Malaysia, and USA. 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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