HAPPY NEW YEAR CHUMPS!!->Hartcourt Companies Update on SEC Litigation
SHANGHAI, CHINA -- (MARKET WIRE) -- 12/30/2004 -- The Hartcourt Companies, Inc. (OTC BB: HRCT) (Frankfurt: 900009), today announced that on December 17, 2004, U.S. District Court for the Central District of California entered partial summary judgment in Securities and Exchange Commission v. The Hartcourt Companies, Inc., et al. The Court found that in 1999, the company violated Sections 5 and 17(a) of the Securities Act of 1933 and Rule 10b-5 under the Securities Exchange Act of 1934 in connection with sales of securities using a Form S-8 registration statement.
The Court issued an order directing that civil penalties be imposed against the company in the amount of $275,000, the amount of $819,363 from the stock sales be disgorged, and the company be enjoined from future violations of the securities laws.
The company is currently considering the options available to it.
About Hartcourt
The Hartcourt Companies, Inc. is an IT retailer, distributor and service provider in the People's Republic of China (PRC). Hartcourt is headquartered in Shanghai. The business is comprised of two divisions: Commercial and Consumer. The Commercial Division services small- and medium-sized enterprises (SMEs), government agencies and a network of distributors with a wide range of IBM products including server, storage, notebook and desktop computer. As the Company moves deeper into the SME space, it plans to expand into lucrative and fast-growing market segments.
The Consumer Division operates 22 retail stores located in Shanghai and Beijing servicing China's largest PC markets with customized, store-assembled desktop computers, branded notebooks, computer peripherals and accessories. The Company has exclusive distribution rights to Samsung monitors and notebooks in Shanghai and Zhejiang provinces.
For more information, visit: hartcourt.com
Forward-looking statements
The statements made in this press release, which are not historical facts, contain certain forward-looking statements concerning potential developments affecting the business, prospects, financial condition and other aspects of the company to which this release pertains. The actual results of the specific items described in this release, and the company's operations generally, may differ materially from what is projected in such forward-looking statements. Although such statements are based upon the best judgments of management of the company as of the date of this release, significant deviations in magnitude, timing and other factors may result from business risks and uncertainties including, without limitation, the company's dependence on third parties, general market and economic conditions, technical factors, the availability of outside capital, receipt of revenues and other factors, many of which are beyond the control of the company. The company disclaims any obligation to update information contained in any forward-looking statement.
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Contact:
For Hartcourt:
Mr. Tony Xia
Tel: + 86 21 52138810
Fax: + 86 21 52138870
Email: ir@hartcourt.com
For Adam Friedman Associates:
Leslie Wolf-Creutzfeldt
Tel: 212 981-2529 X 11
Email: leslie@adam-friedman.com
SOURCE: The Hartcourt Companies, Inc. |
