Company demonstrates its commitment to raising strategic input at both the corporate and core operating levels
Hong Kong, July 5, 2003
chinadotcom corporation (NASDAQ: CHINA; website: www.corp.china.com), the leading integrated enterprise solutions company in Asia, today announced the appointment of K.C. Kwong as an Independent Director of the Board of chinadotcom corporation, following the recent nomination of K.O. Chia and appointment of John Clough as independent Director and Non-Executive Chairman respectively, of two of its core operating units. Mr. Kwong will also serve as a member of the Audit Committee of the Board.
K.C. Kwong brings a wealth of experience in economics and finance as well as Information Technology (IT) and broadcasting to chinadotcom. He has served in the government of Hong Kong in the positions of Secretary for the Treasury and also as the first appointee to the new position of Secretary for Information Technology and Broadcasting, having been a leading information technology advocate within the government. After retiring from government service, Mr. Kwong joined the Hong Kong Exchanges and Clearing Limited (HKEx) as its first Chief Executive and served until April this year. In public service, Mr. Kwong is a Council Member of the Chinese University of Hong Kong and Board Director of the Hong Kong Community Chest, Hong Kongs leading charity foundation.
The nominating committee of the Board of chinadotcom has laid out several criteria for potential new directors, including experience in the IT industry, deep knowledge of the Asia Pacific region, strong contacts within the greater China region in the IT software and outsourcing sectors, qualified finance and accounting experience, and familiarity with prevailing regulations across various financial jurisdictions.
We are honored to have Mr. K.C. Kwong join us as an Independent Director of the Board of chinadotcom and a member of its Audit Committee. K.C.s qualifications and experience were viewed very favorably by the Boards nominating committee. His telecom, broadcasting and IT knowledge should greatly assist the companys initiatives in the internet portal and mobile applications space, while his prior experience as Secretary of Treasury and CEO of the HKEx will naturally enhance his role as Audit Committee member, said Raymond Chien, Executive Chairman of chinadotcom corporation. K.C.s appointment, coupled with the recent nomination of Mr. K.O. Chia as an Independent Director of our mobile and portal unit, hongkong.com Corporation, and the appointment of Mr. John Clough as the Non-Executive Chairman of Praxa Limited, a software and outsourcing unit of the company, brings us deep experience from various industries in the Asia-Pacific region where our operations are currently concentrated. This should help increase the strategic input into both the corporate and the operating levels, which will ultimately benefit our shareholders.
Mr. Chia, currently the Managing Director of Walden International, a global venture capital firm headquartered in San Francisco, has operational experience with Fortune 500 companies such as Hewlett-Packard and Apple Computer in the Asia Pacific region. hongkong.coms recently acquired SMS company, Newpalm (China) Information Technology Co., Ltd. (Newpalm), a leading SMS and mobile software and application developer in China, has made significant progress in terms of the launch of new services and connectivity with provincial mobile network operators. Newpalm recently concluded additional service agreements with local mobile network operators in four more provinces, Hebei, Yunnan, Gansu, and Xinjiang, making a total of 26 provinces with direct connectivity. In addition, it launched customized weather news channel to its SMS subscribers.
Mr. Clough, currently a Special Advisor to General Atlantic Partners, a global private equity technology investment firm headquartered in New York city, has over 25 years of management experience in the IT industry. Praxa was acquired by chinadotcom in early 2003 and is expected to add significant synergies to chinadotcoms outsourcing platform and plans to use chinadotcoms outsourcing center in China, as well as its India-based joint venture with vMoksha Technologies, once it becomes operational, for elements of its workflow going forward.
About chinadotcom corporation
chinadotcom corporation (NASDAQ: CHINA; Website: www.corp.china.com) is a leading integrated enterprise solutions and software company offering technology, marketing, mobile and media services for companies throughout Greater China and the Asia-Pacific region, the US and the UK. With operations in 10 markets, with over 1,000 employees - the companies under the chinadotcom group have extensive experience in several industry groups including finance, travel and manufacturing, and in key business areas, including e-business strategy, packaged software implementation and development, precision marketing and supply chain management. chinadotcom leverages this expertise with alliances and partnerships to help drive innovative client solutions.
A separate software unit, CDC Software Corporation, spearheads the company's strategy to move up the value curve in the software services and products area. It focuses on building up the companys IP assets base, establishing partnerships with software vendors and broadening its overall software product offerings in the areas of enterprise solutions and integration. It currently has over 1,000 installations and more than 600 customers in the Asia Pacific region.
The company also established CDC Outsourcing, which allows for elements of workflow such as client and project management to be provided in the contracted country (i.e. UK, US or Australia), with technology and applications sourced from either of the companys low-cost, CMM-certified outsourcing centers in China or India.
In our Mobile and Portals unit, the company operates popular news, email and consumer service portal websites in China, Hong Kong and Taiwan. Through the recent acquisition of Newpalm (China) Information Technology Co., Ltd. (Newpalm), the company now offers consumer-based and enterprise-based SMS and mobile application software development services. The Newpalm platform works on both the CDMA and GSM systems, with connectivity and service agreements with mobile network operators in over 26 provinces. Newpalm is a wholly-owned subsidiary of hongkong.com Corporation, a mobile applications and portal arm and 81%-owned subsidiary of chinadotcom.
For more information about chinadotcom corporation, please visit www.corp.china.com.
Safe Harbor Statements
This press release includes certain "forward-looking statements" within the meaning of the United States Private Securities Litigation Reform Act of 1995. These statements are based on chinadotcom management's current expectations and are subject to risks and uncertainties and changes in circumstances. All forward-looking statements included in this press release are based upon information available to chinadotcom as of the date of the press release, and it assumes no obligation to update or alter its forward looking statements whether as a result of new information, future events or otherwise. Further information on risks or other factors that could affect chinadotcoms results of operations is detailed in its filings with the United States Securities and Exchange Commission, including the Annual Report for the year ended December 31, 2002 on Form 20-F filed on June 16, 2003.
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