Hong Kong, July 18, 2003
chinadotcom corporation (NASDAQ: CHINA; website: www.corp.china.com) announced today that chinadotcom and America Online, Inc. (AOL) are seeking to negotiate the resolution of all outstanding claims that chinadotcom has against AOL and related parties, as well as the disposition of AOLs existing holding of 6,795,200 shares of chinadotcom. In addition, AOL attempted to exercise a portion of its warrant to acquire additional shares in chinadotcom. The current negotiations also encompass the attempted exercise of a portion of AOLs warrant. There can be no assurance that any agreement will be reached with respect to any of these matters, and even if an agreement is reached, there can be no assurance of the effect of such agreement on chinadotcom or its stock price.
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. We currently have over 3.25 million paid subscribers in China on a platform that 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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