KanHan announces an agreement with a leading Internet service provider in China, tecent.com for launching a real-time voice mesage and DIY ringtone download platform

(Hong Kong, [-] February, 2004) - KanHan Technologies Limited (KanHan) today announced that the Group, through its subsidiary, KanHan Technologies Limited ("the Company"), has entered a content agreement ("the Agreement") with renowned real-time internet services provider Tencent.com ("Tencent" or "QQ"). According to the Agreement, Tencent will utilize the Web-to-Speech ("WTS") technology of KanHan and its DIY platform to launch the brand new "Real-time Voice Message" and "DIY Ring-tone" services for mobile phones market in China.

"Real-time Voice Message" and "DIY Ring-tone" services are the world's first do-it-yourself ring-tone download services. By uploading favourite song, music and voice to the Internet based platform, users have options to choose certain pre-defined section of the sound files in ring-tone format via WAP PUSH, MMS, GPRS or WEB channels to designated mobile phones. Similarly, text messages will then be converted into speech by WTS prior to making a ring-tone presentation format. Fees and charges on the service will base on the standard charges of similar services in the PRC, with details to be confirmed by both parties.

Referring to the Agreement, Mr. Lawrence Mo, Chief Executive Officer of KanHan said, "We are pleased to have reached an agreement with renowned real-time internet services provider. With the increasing popularity of mobile phones in the PRC, we are confident that the new business will help to raise the Group's profile in the PRC. Since this is the start of our partnerships formation in the PRC, we expect that KanHan's brand new Real-time Voice Message platform will gain popularity in the PRC."

Mr. Zheng Li Qing, Chief Operating Officer of Tencent said, "With the introduction of KanHan's Web-to-Speech ("WTS") technology, growth of Tencent's mobile value-added business will be greatly facilitated. Integrated with Tencent's existing businesses, this will help to bring an ultimate new experience to our subscribers."

Mobile phone value-added services market which includes SMS has been growing rapidly in the PRC. It is estimated that the market will grow at a compound annual growth rate in excess of 45% from 2004 to 2006. MMS will trail the growth of value-added services in 2004. Introduction of KanHan's voice and ring-tone download service will enable the Group to enjoy early mover advantages.

The Group begins to deploy its HanPHONE technology on vertical applications in other commercial aspects, with fee-based football information phone hotline FBwin PHONE being launched recently. KanHan's major clients in the PRC, Hong Kong and Taiwan include Beijing City Government, China Southern Airlines, the Hong Kong Society for the Blind, HSBC, the City University of Hong Kong and the Taiwan Foreign Affairs Office.

 
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