CBCom Inc. Announces the Acquisition of One of the Largest Private ISPs in China - Xin Hai Technology Development Ltd., Internet service providers - Brief Article

ISP Business, July, 2001

CBCom announced that it has signed an agreement to acquire, through its strategic local partner, the ISP business of Xin Hai Technology Development Ltd., one of the largest private ISPs in Beijing and the fifth largest in Shanghai. This acquisition will transform CBCom, and its strategic partner, into one of the largest non-state owned ISPs, with over 200,000 Internet accounts, as well as the largest prepaid Internet card provider in China.

Max Sun, CEO of CBCom Inc., said, "We've now entered the Internet business in China with a big splash by acquiring this division of Xin Hai, well recognized as a leader in ISP service. In addition, we have gained instant recognition in the industry and have become a serious player in the Internet business in China, both as an ISP and as the largest prepaid Internet card supplier. We have taken a major step forward in our planned business development in China by increasing our subscriber base and developing our technical, marketing, and customer service expertise."

By acquiring Xin Hai, CBCom and its partner will add 200,000 active Internet accounts that have easy Internet access for current and future subscribers through its 95777 dial-up access number that can be used in any city in China. These special access numbers are exclusively allocated to the larger ISPs and provide customers with a 50 percent discount off the local telephone rate for Internet use. Given the lack of disposable income in China, this is an enormous savings for the end user.

CBCom, and its partner, now own five prepaid Internet card distribution centers selling Internet cards directly to the public. In addition, CBCom will have the largest prepaid card distribution network in China that includes 65 contracted wholesalers covering Beijing and Shanghai.