KanHan Technologies Group Limited Announces Proposed Listing on the Growth Enterprise Market

[11 February 2003, Hong Kong] ─ KanHan Technologies Group Limited (“KanHan” or the “Group”; stock code: 8175) announced today its proposed listing on the Growth Enterprise Market (“GEM”) of The Stock Exchange of Hong Kong Limited (“SEHK”).

KanHan will initially offer 120,000,000 Shares, including 60,000,000 New Shares and 60,000,000 Sale Shares for subscription by way of placing (“Placing”). The offer price is HK$0.33 ~ HK$0.45 per Placing Share. KanHan may issue up to 12,000,000 additional new Shares, representing 10% of the shares initially offered under the Placing, pursuant to an over-allotment option.

South China Capital Limited is the Sponsor and South China Securities Limited is the Lead Manager. The final Placing price will be fixed on 14 February 2003 (on behalf of the Placing underwriters and the Group). Dealings of KanHan’s shares are expected to commence on 25 February 2003 (Tuesday) (Subject to SEHK’s approval).

Established in 1999, KanHan Technologies Group Limited is a market leader in Asian Language infrastructure development for wireless devices such as PDAs and 2G and 3G mobile phones and PCs. The Group pioneered the development of thin-client web-based technologies to facilitate seamless communications across language, cultural and dialectical boundaries among Chinese, Japanese and Korean language speakers.

KanHan’s HanWEB Publishing Server, equipped with its patented Han Font technology, provides users with a cost-effective and accurate real-time Web-based translation from Simplified Chinese to Traditional Chinese, and vice versa. By translating Traditional Chinese, Simplified Chinese, Japanese and Korean characters into graphics, the Group provides an ultimate solution to the plaguey problem of inaccurate Simplified-Traditional Chinese translation and problematic Chinese displays. Its advanced real-time Web-based translation technology also enables users to maintain only one version in Web content, design and programming, sparing enterprises huge sums of money.

KanHan’s another flag-ship product--HanVOICE Server is an advanced real-time Web-phone conversion platform available in Cantonese, Putonghua and English. Its strategic partnership with international speech technology developers has equipped the Group with the latest and the most advanced speech technology in text to speech conversion. Leveraging on the rapid increase in foreign direct investment and cultural exchanges between the Greater China Region, the Group is confident that its HanVOICE Server will further accelerate and encourage information exchanges between the Regions.

Echoing the HKSAR government’s projected encouragement of business co-operations and cultural exchange with the PRC, over 180 government websites has comprehensively equipped with KanHan’s HanWEB Publishing Server to provide real-time Simplified-Traditional Chinese translations to web contents. The Beijing City Government, the Shenzhen City Government, the Kaiping Government in the PRC and the Ministry of Foreign Affairs in Taiwan have all signed up contracts with KanHan to provide real-time Simplified-Traditional Chinese translation.

The Group’s Chief Executive Officer, Mr. Lawrence Mo said, “We are so pleased that our products have been widely accepted in the PRC, Taiwan and Hong Kong. With the PRC’s accession to the WTO and the increased popularity of e-commerce, an accurate and reliable Chinese communication software platform will definitely provide the key to effective communications between the Chinese communities. The tremendous response from large enterprises and SMEs across the border also gives us great encouragement. Leveraging on our solid foundation in the R&D of Chinese communication platform, the Group is now aggressively eyeing possible business opportunities to commercialize our text to speech HanVOICE Server to provide phone-banking, stock quotes and news reports, etc. on the internet.”

Looking ahead, Mr. Lawrence Mo concluded, “We see the advancement of 3G mobile handsets as a favourable factor to our Group’s future developments. Given the limitations of mobile handsets for Chinese processing, our Group’s Web-based real time Chinese communication platform has provided a cost-effective and ultimate solution to hand-set manufacturers, enabling them to produce one standardized model for international use. We will put our greatest efforts in this project and we will also work hard on future R&D, generating satisfactory returns to our shareholders.”