Hong Kong, October 19, 2000
subsidiary acquires Miller Freeman Asia's travel & tourism group and the group's publishing services division
— chinadotcom corporation (NASDAQ: CHINA: Website: www.corp.china.com) a leading pan-Asian integrated Internet company, today announced the acquisition of a 100% stake in Miller Freeman Asia's travel & tourism group and the group's publishing services division by its subsidiary, hongkong.com Corporation.
Based in Singapore, the acquired business is Asia's leading travel trade publisher. It publishes eight regular publications including Travel Trade Gazette Asia, Incentive & Meetings Asia and Business Travel News Asia Pacific. It also organizes various major travel trade shows in Asia. One of its trade publications, Travel Trade Gazette Asia (TTG Asia), is regarded by the travel trade industry as Asia's best known and most reliable weekly travel trade magazine. With 26 years' experience as the market leader, TTG Asia provides in-depth news and analysis to the airlines, hoteliers, travel agents and tour operators that make up the Asian travel trade industry. TTG Asia is essential reading for most participants in the Asian travel industry, with a readership of almost 100,000 people.
"E-travel services represent a significant part of our strategic plans, in both the consumer and business-to-business sectors. Our acquisition of Miller Freeman Asia's travel & tourism group will definitely play a major role in the evolution of these plans," said Peter Yip, Chief Executive Officer of chinadotcom corporation.
Industry analysts rated the travel industry as one of the key B2B e-commerce growth areas. According to a recent report by Forrester Research, online revenue generated from the Asian travel market is expected to reach US$32 billion by 2003.
chinadotcom's recent investment in Chinaholiday (www.chinaholiday.com) plays an important role in the company's e-travel strategy. Chinaholiday's China-based B2B travel platform, which serves over 800 registered travel agents and 2000 hotels, has been rated one of the best e-travel sites by the China Internet Network Information Center (CNNIC).
Chinaholiday.com is the only website to have the exclusive online franchise for distributing the travel products of China Travel Services, the leading State-owned travel agency in China.
"We believe that industry knowledge is essential to create a truly successful vertical e-marketplace. It demands expertise and sensitivity to each country's cultural and business landscape. Travel is a highly information-intensive business and the Internet is well suited for researching fares, schedules, tour packages, hotel accommodations and destinations," commented Rudy Chan, Chief Executive Officer of hongkong.com Corporation.
"While we recognize that there are economic, infrastructure and other significant challenges ahead in extracting the synergistic value of both companies, we believe that the combination of Chinaholiday's B2B travel platform and TTG Asia's unrivalled publishing expertise in the Asian travel industry, when successfully implemented, will lay a solid foundation for chinadotcom's B2B e-travel services strategy," Peter Yip added.
The majority stake in Chinaholiday and acquisition of Miller Freeman Asia's travel & tourism group and the group's publishing services division illustrate how chinadotcom leverages its synergistic investment strategy to strengthen its portal network content and community and drive its B2B e-commerce revenue.
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-dimensional business model, 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 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, chinadotcom is well positioned to create long term shareholder value through its investments.
The company has offices in more than 10 markets, including Japan, Korea, Australia, Hong Kong, Taiwan, Singapore, Malaysia, Thailand, and the USA. For more information about chinadotcom corporation, please visit www.corp.china.com
About hongkong.com Corporation
hongkong.com Corporation (GEM Stock: 8006; Website: www.hongkong.com), a leading Asian internet media, communications and interactive services company has established strategic alliances with a number of internationally prominent, businesses including AOL, Netscape, 24/7 Media Asia, RealNetworks, Visitalk.com, Stockhouse.com, sportasia.com, deltathree.com, registrars.com, Xinhua News Agency, Agence France-Presse, and Reuters. They offer content, technology and distribution capabilities as well as marketing, e-commerce and cross-promotional opportunities. The main channels available on hongkong.com include technology, finance, travel, beauty, sports, entertainment and the cityguide.
hongkong.com has been recently awarded The Best Internet Content Provider by Capital Magazine and the website was rated as the most visited Hong Kong portal (Alexa report; August 2000). As a leading Hong Kong portal, hongkong.com achieved 4 million daily pageviews (based on audit guidelines endorsed by PriceWaterhouseCoopers*) in June. With efforts to build online communities, encouraging a wider user base, effective marketing campaigns and 23 vertical channels of localized content, hongkong.com has acquired 1.2 million registered subscribers at the end of June, a more than 58% increase from 760,000 registered subscribers in the fourth quarter of 1999.
Partnering with world recognized advertisers including IBM, KLM, HKTA and Compaq, hongkong.com has already generated significant growth in revenue from online advertising . As hongkong.com's e-commerce operations continue to develop regionally and globallythey will strengthen hongkong.com's position as one o f the preferred advertising sites.
About Miller Freeman Asia's Travel & Tourism Group
Miller Freeman Asia is Asia's leading trade fair organiser and one of the major providers of high quality B2B information in its publications and web sites. Acquired by hongkong.com, its Singapore-based Travel Group trade publications comprised TTG Asia, TTG China, Business Travel News (BTN) Asia-Pacific and Incentive & Meetings Asia (IMA). The Tourism Group published This Week Singapore and Map of Singapore in English, supplemented by Japanese and Chinese language versions, and Singapore Conventioner for meetings delegates. A host of marketing and publishing services supported the print media.
Travel-related events included Incentive Travel & Conventions, Meetings Asia (IT&CMA) and Corporate Travel World (CTW) Asia-Pacific.
Chinaholiday (Website: www.chinaholiday.com) is one of the earliest pioneer websites focused on travel and tourism e-commerce in China. Since 1997, Chinaholiday has set itself up as a leading brand name in the field of online travel and tourism business in China. Chinaholiday provides a full range of online travel products and services, such as airline ticketing, hotel booking, and package tours, to the Chinese travel industry and individual travelers, working closely with a large number of travel agencies in China.
Chinaholiday also has the exclusive franchise for distributing China Travel Service's online travel products and services.
Chinaholiday has been ranked many times by media and government agencies in China as one of the top websites. Following a survey conducted by a third party over a period of 8 months in respect of over 600 websites in China, China's Ministry of Culture designated Chinaholiday the only "Excellent Website" in the category of travel and tourism. Only 14 other websites in other categories were bestowed with similar honor.
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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