HRCT
BSNS WIRE) Hartcourt Acquires 58 Percent of Financial Telecom of Hong Kong
Hartcourt Acquires 58 Percent of Financial Telecom of Hong Kong
Business Editors
LOS ANGELES--(BUSINESS WIRE)--Aug. 25, 1999--The Hartcourt
Companies Inc. (OTC BB:HRCT) Wednesday announced that it has agreed to
acquire 58 percent of all outstanding shares of Financial Telecom Ltd.
(FTL) of Hong Kong.
FTL is an information service provider specializing in
transmitting real-time financial data and news via a network of
fixed-line and wireless systems, including a new-generation high-speed
FLEX wireless PDA for mobile users.
FTL is also the marketing agent for Standard & Poor's Comstock, a
division of McGraw Hill, in Hong Kong. FTL has been a premier
pacesetter in this business for the last 16 years.
FTL plans a major expansion in China by setting up a nationwide
distribution of data, linking major cities via satellite up-link and
marketing these services via a network of paging operators as
resellers.
The quick service launch will be made possible by the recent
joint venture between Hartcourt and UAC Online Stock Trading of China
and by strategic alliance with existing satellite-based operators and
paging systems.
FTL and UAC will also join forces to set up an Internet portal,
specializing in financial data and stock market quotes for China and
Hong Kong. Existing customers of the two companies will ensure the
success of the Web site.
At present, FTL maintains a Web site, www.asianetvest.com.hk, for
its clients, which include major investment houses, banks, securities
firms and mutual funds of Hong Kong.
Dr. Alan Phan, chairman and chief executive officer of Hartcourt,
said: "We bought into UAC Online Stock Trading with the goal of
turning it into an E-Trade of China. FTL is operating like a small
Standard & Poor's of Hong Kong.
"By linking the two companies together, we would have a financial
powerhouse in China and Hong Kong stock market. In addition, Hartcourt
is ready to complete another joint venture with a national ISP in
China. In my personal opinion, Hartcourt, via FTL and UAC and the ISP,
will be a major player in the fast-growing field of China Internet. We
are very excited at the prospect."
Stephen Tang, president of FTL, agreed: "China stock market is
growing very fast. Hartcourt and UAC will help us capture the market
share much more quickly than if we do it on our own. The potential
benefit for each and all parties is tremendous. Looking from a
long-term perspective, it is a definite winning combination."
The transaction is scheduled to close within the next 30 days.
Certain statements in this news release may constitute "forward
looking" statements within the meaning of Section 21E of the Securities
Exchange Act of 1934. Such forward-looking statements involve risks,
uncertainties and other factors, which may cause the actual results,
performance or achievement expressed or implied by such
forward-looking statements to differ materially from the
forward-looking statements.
--30--jap/la* kr/la
CONTACT: Hartcourt Companies Inc.
Dr. Alan V. Phan, 562/426-9796
KEYWORD: CALIFORNIA INTERNATIONAL ASIA PACIFIC
INDUSTRY KEYWORD: INTERACTIVE/MULTIMEDIA/INTERNET COMED BANKING
MERGERS/ACQ
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