KanHan Announces a major transaction with a strategic investor for HK$100 million equity line of credit

(Hong Kong, 14 December 2003) - KanHan Technologies Group Limited ("KanHan" or the "Group") (Stock code: 8175) announces that it has signed a written agreement on December 2, 2003 (the "Agreement") subject to final written completion, with GEM Investment Advisors Inc. acting on behalf of a strategic investor, the GEM Global Yield Fund ("Global"). GEM Investment Advisors Inc. acts in the capacity of investment adviser to Global.

Under the Agreement, Global will provide the Equity Line of Credit to the Group by investing in the shares of KanHan ("Shares") based on an agreed formula and also at the discretion of the Group, up to HK$100,000,000 over a period of three years from the date of a fully completed agreement. The formula calls for Global to purchase the Shares at a price equivalent to ninety (90) percent of the average closing price of Shares during the fifteen consecutive trading days immediately prior to the date of the draw down defined as the Drawdown Pricing Period.

The purpose of this funding arrangement is to enlarge the working capital of the Group. The Group intends to apply the funds for business expansion and alliances, partnerships and making possible acquisitions in the PRC. The increase in business activities reflects the determination of the Group to apply its technology in certain vertical industries such as logistics, phone and mobile voice portal applications in Hong Kong and China, using the Group's Web-to-Speech technology.

Referring to the Agreement, Mr. Lawrence Mo, Chief Executive Officer of KanHan said, "The commitment of Global is a strong endorsement to KanHan. The Equity Line of Credit strengthens the Group's financial position to capture its business opportunities in an increasing demand of the Web-to-Speech, IVRS, ring tone and voice message down load in the wired, 2.5G and 3G phone markets."

The Group signed business partnership and agreement with ESDlife and 21CN Corporation Limited in Guangzhou, and is at an advance stage to conclude a contract with one of the leading PRC Internet content providers.

To date, KanHan's major clients include China Southern Airlines, the Beijing Municipal Government, the Hong Kong Society for the Blind, HSBC, Octopus Card, the City University of Hong Kong and the Ministry of Foreign Affairs, Taiwan, among others.