China Telecom, China Merchant Bank, and China E-Commerce Technologies Ltd. Jointly Launch Internet Banking Card for Use Throughout China

Business Wire, Sept 20, 2000

Business Editors/High-Tech Writers

GUANGZHOU, China--(BUSINESS WIRE)--Sept. 20, 2000

China E-Commerce Technologies Ltd. (CECT), a subsidiary of Internet Corporation, has joined with China Telecom and China Merchant Bank (CMB) today in launching a multi-purpose Internet banking card for use throughout China.

The iBanking Card, a multi-purpose Internet banking card, will provide the cardholder with a new virtual bank account at China Merchant Bank, along with the Internet Service Provider (ISP) network connection services from CECT through China Telecom. New users can easily get online without the traditionally long process of applying and setting up their ISP account or online bank account. The application and services of this same ISP account can be used on both PC and Internet Appliances.

As part of CMB's innovative banking services, new virtual banking customers have the option to apply for the account without visiting bank locations. Upon application, the iBanking Card will be delivered by the China Postal Bureau, which verifies an applicant's ID and documentation. The China Postal Bureau has the largest network of delivery services throughout China. CECT also has established a direct link with the China Postal Bureau allowing its customers to go online and wire transfer funds to any of its over 66,000 locations nationwide.

The iBanking Card also serves as a discount card at over 5,000 member merchants through CECT's partners. The iBanking Card allows users to enjoy discounts from 5% to 40% when making purchases or using services of these merchants, which include hotels, travel agencies, restaurants, supermarkets, drug stores, book stores, entertainment clubs, electronic shops, department stores, and other specialty stores.

The card will bear the China Merchant Bank and China E-Commerce Technologies Ltd. emblem and logo. The card is targeting consumers that use traditional services but have not yet signed up for the online banking services. The card will be distributed to China Merchant Bank regular account holders, discount card members, and new PC and Internet Appliance users. The card will be accepted at all CMB branches throughout China.

"Launching of the iBanking Card jointly with China Merchant Bank, one of the country's most widely recognized and prestigious banking institutions, along with China Telecom is a major milestone for our company," said Johnston Chen, president and chief executive officer of Internet Corporation. "We have expanded our market to reach a huge pool of new consumers and provide them with valuable services while at the same time bringing them to the electronic transaction market or e-living concept."

"A cooperative joint effort across the industries is a requirement to develop an information society of the future," stated Mai Xin, bureau chief and director of GuangDong China Telecom. "China Telecom firmly believes this partnership will result in a significant improvement of lifestyle and greatly contribute to the benefit of the Chinese consumer."

"The whole banking industry is moving into an electronic era, and we are pleased to once again be the pioneer in leading this revolution in partnership with telecom, and e-commerce leaders," commented Lo Zhi-Tong, general manager of China Merchant Bank.

China Telecom

China Telecom is the largest telecommunication infrastructure and services organization in China. Its services include fixed-line telephone network, IP phone, and digital multimedia communication and information services. Infrastructures include system integration, technology development for Internet connection. With over 100 million phone customers, its 1999 revenue reached $145 billion RMB, and current assets has exceeded $473 billion RMB.

China Merchant Bank

China Merchant Bank (CMB), with current assets over US$15 billion and with US$10 billion of deposits, ranks as the 6th largest bank in China. Established in 1987, CMB was the first bank with public shareholder ownership in China. As the pioneer in China's banking reform, CMB was the first Chinese bank to enter offshore banking and has established international banking agreements with 571 banks in 40 countries worldwide. Within China, CMB has over 8 million account holders and nearly 200 branches with its own nationwide commercial banking network.

CMB is also the first China bank to officially establish investment-banking operations in the Chinese banking industry, and more recently, has set up the first China Internet banking service. CMB was also the first bank in China to obtain ISO-9001 certification.

China Postal Bureau

China Postal Bureau has the largest delivery services in China, with over 200 large scale distribution centers established in the country's large and medium cities that serves more than 2,000 cities through an extensive delivery network. It has over 66,000 post offices nationwide, covering virtually all of China, including rural countryside. Its services include mail and parcel delivery, freight transportation services, and fund remittance. It also has a postal savings system allowing depositors to withdraw money from their postal accounts at bureau's online counter or ATM. Its 1999 revenue reached $42 billion RMB.