Summary of Investor Conference Call on March 31, 2005

Market Wire, April, 2005

The Hartcourt Companies, Inc. (OTC BB: HRCT) (Frankfurt: 900009), today announced that Hartcourt has held an investor conference call on Thursday, March 31, 2005 at 7 a.m. PST, 10 a.m. EST, 5 p.m. Berlin and 11 p.m. Shanghai time. The summary of the conference call is as follows:

-- The Company filed Form 12b-25 on March 31 for a delayed 2004 10-KSB filing until April 15 due to our inability to timely complete the audit of one of our subsidiaries that was pending for sale until mid March.

-- The 2004 consolidated financial results of Hartcourt on continuing operations will primarily consist of financial results from our Samsung distribution business in Eastern China, plus the headquarter administrative expenditures. The financial results of the four subsidiaries previously announced for disposition or pending for sale will be listed separately under the "discontinued operation" or "assets pending for sale" categories.

-- Our 2004 revenue was approximately $74mm, derived entirely from sales of Samsung products. Compared to the same business in 2003, revenue increased 54%. However, our gross margin decreased by one percentage point, from 3.5% to 2.5%, reflecting fierce competition in the market place. Declining gross margins have been a broad and continuous trend in the China IT hardware distribution industry over the past 5 years and management expects that this trend will continue.

-- The Company decided to exit the low margin distribution businesses acquired by it in 2003. We expect that these discontinued businesses will result in a one-time, non-cash accounting write off and provision.

-- The Company paid 50% of the SEC judgment on March 23, 2005. Management is reasonably confident that we will be able to raise enough funds through private offerings of restricted common stock to pay the remaining portion before April 29, 2005. The SEC had advised us that it will not object if we pay the balance by that date. The total cost of the SEC litigation to the Company is estimated at $1.4mm. An additional $100,000 provision with respect to the SEC litigation will be made in our 2004 financials. The entire amount of $1.1 mm is to be paid to the SEC.

-- Hartcourt's new Board retained new litigation counsel in the fall of 2004 and determined after consultation with counsel that the best course of action was to resolve the issue rather than further litigate so that the Company could move forward and focus on its business.

-- Management is devoting resources to develop new businesses through acquisition of attractive companies with their own technologies and products, operating in niche markets with unique competitive advantages and be able to grow profitably. We are in negotiation with a number of companies at the present time and hope to reach agreement with respect to these potential acquisitions in the near future.

-- Management believes that the successful acquisition of a few attractive companies will enable the Company to meet most of NASDAQ listing requirements. Our goal is to move the Company to NASDAQ, a more suitable choice for Hartcourt since we invest in the technology industry.

-- Management is considering all of the options available to us regarding the erroneous "E" status on Hartcourt's ticker symbol last week. We wish to thank our shareholders for alerting the Company early on so that we were able to take corrective actions to minimize the damage to our trading price.

About Hartcourt

Hartcourt's achievements and operations can be found on its web site: www.hartcourt.com

Forward-looking statements

The statements made in this press release, which are not historical facts, contain certain forward-looking statements concerning potential developments affecting the business, prospects, financial condition and other aspects of the company to which this release pertains. The actual results of the specific items described in this release, and the company's operations generally, may differ materially from what is projected in such forward-looking statements. Although such statements are based upon the best judgments of management of the company as of the date of this release, significant deviations in magnitude, timing and other factors may result from business risks and uncertainties including, without limitation, the company's dependence on third parties, general market and economic conditions, technical factors, the availability of outside capital, receipt of revenues and other factors, many of which are beyond the control of the company. The company disclaims any obligation to update information contained in any forward-looking statement.

Contact: Ms Tingting Ni Tel: 86 21 52138810 Fax: 86 21 52138870 Email: ir@hartcourt.com