CathayOnline Inc. Announces TorchMail.com Hires the Murjan Group for Online AdvertisinG www.cathayonline.com

Business Wire, August 19, 1999

NEW YORK--(BUSINESS WIRE)--Aug. 19, 1999--

CathayOnline Inc. (OTC BB:CAOL) is pleased to announce the hiring of The Murjan Group by its subsidiary, TorchMail.com.

The Murjan Group will bring online advertising to TorchMail.com's e-mail/e-messaging services. The Murjan Group contributes more than 10 years of experience to the relationship, including the renowned talents of the individuals responsible for developing the initial banner advertising for Tucows (http://www.tucows.com).

In a recent report by Forrester Research, online advertising spending was predicted to hit US $33 billion by the year 2004. While the USA accounts for the majority of this expenditure, one third will be generated outside of the USA - a figure that is expected to grow from US $502 million this year, to US $10.8 billion in 2004.

TorchMail.com expects advertising and advertising revenue to grow exponentially with the expansion of their free e-mail services in Asia. TorchMail.com advertising will originate from North America and will focus on both the North American and Asian markets.

TorchMail.com working with USA.NET offers Professional Messaging as standard features. TorchMail.com Professional Messaging is accessible from virtually anywhere worldwide, connecting travelling employees, branch offices and dealer/distributor networks.

The continued expansion of CATHAYONLINE INC's Internet services, propels the Company further toward its goal of becoming a leading, fully diversified Internet company targeting Chinese-speaking markets in the People's Republic of China.

CATHAYONLINE INC.

On Behalf of the Board of Directors Brian Ransom, Director

Statements included in this press release which are not historical in nature, are intended to be, and are hereby identified as "forward-looking statements" for purposes of the safe harbor provided by Section 21E of the Securities Exchange Act of 1934, as amended by Public Law 104-67. Forward-looking statements may be identified by words including "anticipate", "believe," "intends," "estimates," "expect," and similar expressions. The Company cautions readers that forward-looking statements, including without limitation, those relating to the Company's future business prospects are subject to certain risks and uncertainties that could cause actual results to differ materially from those indicated in the forward-looking statements.