Tengtu International Corporation First to License and Use Netopia Web and e-Business Platform in China

Business Wire, August 22, 2000

Business Editors/High-Tech Writers

ALAMEDA, Calif.--(BUSINESS WIRE)--Aug. 22, 2000

Tengtu Continues to Establish Information Technology Infrastructure

With K-12 Educational System in China by Leveraging

Netopia's Web and e-Business Platform

Netopia, Inc. (Nasdaq:NTPA), a market leader in providing DSL Internet equipment and e-commerce Web platforms to small and medium size businesses, today announced that Tengtu International Corp. (OTCBB:TNTU), developer and marketer of educational and entertainment multimedia software and related services, is the first company to license the Netopia Web and e-Business platform to provide K-12 schools in China and Hong Kong with a unique suite of customized Internet solutions for e-education.

"Our strategic partnership with Netopia represents the next step in the evolution of our Total Solution education business model," said Tengtu International chairman and CEO Pak K. Cheung. "The Tengtu Total Solution is an IT-based foundation that can easily be linked to Netopia's customizable Web platforms. Our common objective is to create an e-education portal of unprecedented size and functionality as we roll out our products and services to China's 800,000 K-12 schools, encompassing 200 million students and their families.

"Each school will have its own individual website that integrates applications for teaching and learning, home/school interactivity, school resource management, global inter-school communication and resource sharing. What's more, each school will access a complete suite of Internet solutions customized to meet its specific e-commerce needs. This unique product offering is like a pipeline for transporting merchandise orders, distance-learning courses, parent/grandparent registration charges and a host of similar subscription fees.

"Tengtu's education business model will be transformed and upgraded from its present state of Systems Integrator/Developer to high value-added ASP/ICP (Application Service Provider/Internet Content Provider)," Cheung concluded.

"Our relationship with Tengtu is extremely significant," said Tom Spadafore, Group vice president, Netopia e-Business. "Tengtu's affiliation with China's three largest computer companies and its strategic partnership with Microsoft, combined with the recent official endorsement by the Ministry of Education, attests to the strength of Tengtu's position in China. This partnership paves the way for Netopia to introduce its e-Business solutions in the Chinese market."

About Tengtu International Corp.

Tengtu International Corp. is a developer and distributor of multimedia educational and entertainment software and related services, operating through a joint venture and subsidiaries in Canada, Hong Kong and the People's Republic of China.

The company's primary operating unit, Tengtu United Electronics Development Co. Ltd. ("Tengtu United"), is a 57% owned joint venture with Beijing Tengtu Culture & Education Development Co. Ltd. ("Tengtu China"), the Chinese state enterprise mandated to develop a comprehensive information technology solution for the national K-12 school system and to serve as the country's gateway for electronic publishing. Tengtu China is owned by China's three largest computer companies, Legend Computer Group, Great Wall Computer Group and Taiji Computer Corp., and technology investor Beijing Oriental Lian Fa Company Ltd. Its strategic partners include the China unit of Microsoft Corp. (Nasdaq:MSFT) and the People's Education Press, the sole source of materials authorized for use in Chinese schools.

Tengtu International's other units include wholly owned e-business portal e-bizTengtu.com, Inc.; wholly owned animation and television production studio TIC Beijing Digital Pictures Co., Ltd.; 61.3% owned software marketer Edsoft Platforms (Hong Kong) Ltd. and 44% owned educational software developer Iconix International, Inc. For more information, please visit www.tengtu.com.

About Netopia, Inc.

Netopia, Inc. develops, markets and supports Internet and electronic commerce infrastructure for small and medium sized businesses. Netopia's DSL equipment and e-commerce Web platforms enable businesses to connect easily and cost-effectively to the Internet, establish and enhance their Internet presence, and conduct business and electronic commerce on the Web.

With its Netopia DSL Router family, the Company is interoperable with all major central office equipment suppliers, including Alcatel, Cisco, Copper Mountain Networks, Lucent Technologies, Nokia, Orckit, Paradyne, and Siemens; and has established strategic distribution relationships with leading CLECs including Covad Communications, NorthPoint Communications, Rhythms NetConnections, and Jato Communications; and with hundreds of ISPs and carriers including France Telecom, Telecom Italia, Verizon, PSINet, Verio, UUNet, Earthlink Network and Concentric Network.

With its Netopia e-commerce Web platform, the Company has established Web-based services with Bloomberg.com, Citigroup's bizzed.com, Cendant Corp., Netscape Netcenter, Jato Communications, Everdream, France Telecom and Mac Publishing's Macworld.com.