To: Silver__7 who wrote (12909 ) 6/29/1999 9:47:00 AM From: Thomas Kundrat Read Replies (1) | Respond to
Nice release on HRCT.....
Hartcourt Acquires 35 Percent of UAC Stock Exchange On-line
LOS ANGELES--(BUSINESS WIRE)--June 29, 1999--The Hartcourt Companies Inc. (OTC BB:HRCT) Tuesday announced that it has agreed to acquire 35 percent of UAC Stock Exchange On-Line Co. Ltd.
UAC operates the first and the only nationwide online trading network in China. UAC 162 Network is a private, virtual, secure communication and computer network system connecting investors to brokerage firms around the country. In addition to stock transactions, the network will soon carry news bulletin and other financial market data.
UAC 162 Network runs on CHINAPAC, an intranet of packet switched data network owned by China Telecom. From a PC, invetsors can dial a local number 162 anywhere in China to trade stocks online. UAC is currently developing a Window CE-based user interface to enable investors accessing the UAC Network via their TV set-top boxes.
UAC system has been operating at one office of Hua Xia Securities in Beijing and the results are excellent, in terms of technology as well as financial. Hua Xia Securities, the second-largest brokerage firm in China, has signed an agreement to install the UAC system in all of its 98 offices nationwide.
As the first and only CHINAPAC operating agent designated by China Telecom, UAC is in a unique position to market the services of CHINAPAC and UAC 162 Network to all brokerage firms in China. At present, there are 4,000 brokerage offices in China serving 40 million investors. UAC's mission is to quickly capture as much market share as possible. Total revenue, excluding the TV set-top box users segment, is projected to exceed $40 million by 2004.
More details on UAC can be found at the company Web site: 162stock.com .
Dr. Alan Phan, chairman and chief executive officer of Hartcourt, said: "We set our goal last year to become a major Internet company in China. As it is not an easy market to enter, we suffered a few setbacks. However, our persistence is rewarded handsomely with this acquisition.
"With its technology and infrastructure, UAC has positioned itself to become the first and major e-trade in China. Its potential is mind-boggling, considering the China stock market is already bigger than the Hong Kong stock market. In my personal opinion, UAC is ready to become another world-class online stock trading company, comparable to those household names in America."
Shi Zhang, chairman and president of UAC, agreed: "The China stock market is growing very fast. To quickly capture the market share and better serve the investment community, we decided to team up with a foreign partner to access the latest technology and world capital markets. Hartcourt is our choice because they have been working on many China projects since 1979, giving them a good understanding of our system, culture and potential. Together, we should meet the projection of our business plan quite easily."
The transaction is scheduled to close within the next 60 days. Hartcourt has the option to increase its 35 percent holding, should the Chinese government change its policy regarding foreign ownership in telecommunication companies, once China is admitted to the World Trade Organization (WTO).
Hartcourt and Enova also would like to inform their shareholders and customers that their offices have been relocated to 1198 E. Willow St., Long Beach, Calif. 90806, 562/426-9796.
Certain statements in this news release may constitute "forward-looking" statements within the meaning of the Section 21E of the Securities Exchange Act of 1934. Such forward-looking statements involve risks, uncertainties and other factors that may cause the actual results, performance or achievement expressed or implied by such forward-looking statements to differ materially from the forward-looking statements.
CONTACT:
The Hartcourt Companies Inc., Long Beach
Dr. Alan V. Phan, 562/426-9796
