chinadotcom 3Q00 revenue growth to meet industry estimates

continuing focus on business fundamentals despite current market shakeout monthly web-cast with senior management scheduled for October 12


Hong Kong, October 3, 2000 — chinadotcom corporation (NASDAQ: CHINA; Website: www.corp.china.com) announces today that it is confident that its third quarter top line growth will be within the range of industry estimates. The changed capital markets' views of Internet companies in recent months has led to a period of difficult re-adjustment in Asia, as it has in the United States. chinadotcom continued to make progress towards its goals in the third quarter amid intensifying consolidation, economic rationalization and corporate downsizing in the industry.

As part of its ongoing efforts to keep investors abreast of corporate developments and to discuss business prospects, chinadotcom invites investors from around the world to join its senior management team for its next monthly web-cast scheduled for October 12, 2000.

With a cash reserve and cash equivalent exceeding US$465 million, chinadotcom is well positioned to acquire companies that will further confirm chinadotcom's position as a leading Asia Pacific Internet conglomerate. chinadotcom is committed to take advantage of current market conditions in its investments to continue to strengthen its three-dimensional business model. Last week, the company announced the acquisition of Venex, a leading Japanese e-business solution service firm with a base of premier clients including Sony, NTT DoCoMo and NEC. This acquisition has further advanced chinadotcom's position in the Japanese market.

Internet development in Asia is in its early stages and chinadotcom expects to see continued consolidation and volatility in the industry. Many obstacles, particularly in the areas of infrastructure and regulatory regimes in Asia, still need to be overcome. However, even given these challenges, chinadotcom has achieved its targets and milestones due in large part to its proven three-dimensional business model - e-business solutions, interactive advertising and Greater China portal network - drawing from diverse revenue sources from a number of countries throughout Asia Pacific. Top tier multinational clients such as HSBC, Proctor & Gamble, Ford, Cisco and the Mandarin Oriental Group continue to appreciate the value of the services the company provides. chinadotcom has been less exposed to market pressures than other dotcom companies that are one-dimensional due in part to the quality of its clients and relationships to date, and in part to chinadotcom's demonstrated ability in executing a unique business model.

With the US Senate's passage of PNTR with China, chinadotcom stands to benefit from the wider opening of doors for foreign investment. The broader playing field should foster the rapid development of China's Internet market. Among China Internet companies, chinadotcom has the strongest relationship with the PRC government, which has established promising ventures with chinadotcom in software infrastructure such as China Digital Library, a project to link the PRC's national libraries for national and international access; and CCIDNet, a project under the PRC Ministry of Information Industry to develop a B2B-ASP enabling major PRC industries to transact business online nationally.

Peter Yip, CEO of chinadotcom, said, "Despite the current market sentiment, we continue to focus on executing our business plan. Our senior management looks forward to discussing and providing further details on the company's business progress in its upcoming web-cast."


chinadotcom corporation (NASDAQ: CHINA; Website: www.corp.china.com) announces today that it is confident that its third quarter top line growth will be within the range of industry estimates. The changed capital markets' views of Internet companies in recent months has led to a period of difficult re-adjustment in Asia, as it has in the United States. chinadotcom continued to make progress towards its goals in the third quarter amid intensifying consolidation, economic rationalization and corporate downsizing in the industry.

As part of its ongoing efforts to keep investors abreast of corporate developments and to discuss business prospects, chinadotcom invites investors from around the world to join its senior management team for its next monthly web-cast scheduled for October 12, 2000.

With a cash reserve and cash equivalent exceeding US$465 million, chinadotcom is well positioned to acquire companies that will further confirm chinadotcom's position as a leading Asia Pacific Internet conglomerate. chinadotcom is committed to take advantage of current market conditions in its investments to continue to strengthen its three-dimensional business model. Last week, the company announced the acquisition of Venex, a leading Japanese e-business solution service firm with a base of premier clients including Sony, NTT DoCoMo and NEC. This acquisition has further advanced chinadotcom's position in the Japanese market.

Internet development in Asia is in its early stages and chinadotcom expects to see continued consolidation and volatility in the industry. Many obstacles, particularly in the areas of infrastructure and regulatory regimes in Asia, still need to be overcome. However, even given these challenges, chinadotcom has achieved its targets and milestones due in large part to its proven three-dimensional business model - e-business solutions, interactive advertising and Greater China portal network - drawing from diverse revenue sources from a number of countries throughout Asia Pacific. Top tier multinational clients such as HSBC, Proctor & Gamble, Ford, Cisco and the Mandarin Oriental Group continue to appreciate the value of the services the company provides. chinadotcom has been less exposed to market pressures than other dotcom companies that are one-dimensional due in part to the quality of its clients and relationships to date, and in part to chinadotcom's demonstrated ability in executing a unique business model.

With the US Senate's passage of PNTR with China, chinadotcom stands to benefit from the wider opening of doors for foreign investment. The broader playing field should foster the rapid development of China's Internet market. Among China Internet companies, chinadotcom has the strongest relationship with the PRC government, which has established promising ventures with chinadotcom in software infrastructure such as China Digital Library, a project to link the PRC's national libraries for national and international access; and CCIDNet, a project under the PRC Ministry of Information Industry to develop a B2B-ASP enabling major PRC industries to transact business online nationally.

Peter Yip, CEO of chinadotcom, said, "Despite the current market sentiment, we continue to focus on executing our business plan. Our senior management looks forward to discussing and providing further details on the company's business progress in its upcoming web-cast."

Safe Harbor Statement

The statements in this news release may contain forward-looking information 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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