Hong Kong, April 21, 2002 - Banking and telecoms systems integrator and enabler Technology Venture Holdings Limited (SEHK: 61) today announces that in 2001, the Group's turnover increased 38% to HK$576,387,000, driven mainly by contributions from newly acquired subsidiaries, Advanced Digital Technology (ADT) and DMX Technologies.

During the course of the year, the Group pursued a series of consolidation and rationalization measures and made an aggressive general provision of HK$33,880,000 for outstanding receivables. This, couple with declining hardware gross margins, has contributed to a loss attributable to shareholders of HK$88,808,000. The Company believes that no further provisions would be necessary for the coming years, and this improved financial status would help facilitate its continued efforts to build and strengthen its four flagship business units - Sequent China, Topasia, ADT and DMX Technologies - into leaders in their respective industries. It is TVH's goal to return to profitability in 2002 with stringent cost control measures across the board, including the lowering of per head expenditure at the head office.

Mr Ron Chan Tze-ngon, Chairman of TVH noted: "It is fair to say that the operating environment for TVH and fellow practitioners in 2001 was worse than that of 2000. Against such difficult backdrop, TVH pursued a series of consolidation and rationalization measures to improve its operating efficiency and enhance profitability. The streamlined TVH achieved the cost-cut targets set for itself in the beginning of 2001, and was able to control operating losses in the second half of 2001 with a near break-even status," continued Mr Chan.

The Group's mainframe systems-integration business, operated under Sequent China, has been undergoing a restructuring and re-positioning process since Sequent's acquisition by IBM towards the end of 1999. Last year saw the company's operation significantly scaled down while it prepared itself for new IBM product launches.

Apart from successfully trimming down its operating overheads, Sequent China's 2001 accomplishments were highlighted by a strategic adjustment of its previous product-driven business focus to the provision of technical support and maintenance services with a view to expanding revenue sources.

While maintaining a reseller relationship with IBM, Sequent China has been exploring new niche products for China's banking and finance sector. One of the niche products is the new-generation file caching storage products - Solid State Disc - which further enriches the company's capability to provide data centers with comprehensive solutions. It also broadened its distributor relationships with other world-renowned vendors, including EMC, HDS, StorageTek, Computer Associates, EPI and Oracle.

The Group's peripherals systems-integration business, operated under Topasia, was a major growth driver and a considerable income contributor in 2001. The company had become the third largest NCR automatic teller machine (ATM) integrators in China, up two notches from the previous year.

Topasia currently operates 20 maintenance points in different parts of China and will continue to expand the network for the provision of enhanced customer services, and in the future to serve as the integrated support hub for all business units of the Group.

TopSoft continued to provide enterprise e-commerce solutions, and information enabling services to the public sector. It secured more contracts with the Hong Kong Government in 2001 than in previous years and, at the same time, recorded a steadily growing stream of recurrent business from existing customers. TopSoft will also seek to strengthen its capabilities through strategic collaboration with DMX Technologies, the Group's flagship networking solutions provider, in vying for projects of larger scale.

Advanced Digital Technology (ADT) is the Group's flagship provider of systems-integration and software solutions to banks and financial institutions in China. It achieved most of its profit target in its first full-year operation as a 55% subsidiary of TVH in 2001. The acquisition of ADT in 1999 has made TVH the owner and operator of one of the largest and most experienced banking and finance systems-integration teams in China.

During the year, ADT secured three major network integration and customer relations management contracts of an aggregate value of some RMB64 million with banks in China. It also successfully developed and registered 16 new software products targeted at banks and the public sector in China. TVH expects that ADT will be a major revenue contributor in 2002.

TVH completed the acquisition of a 51% equity interest in DMX Technologies (formerly Skynet Consultants Company Limited) in January 2001. DMX Technologies specializes in offering broadband network infrastructure, network security and e-business solutions.

In 2001, DMX achieved solid progress in extending its geographical reach to China - six offices in Beijing, Guangzhou, Fuzhou, Hangzhou, Shanghai and Xian - and Malaysia. It is also looking into expanding its operation in Singapore and exploring new opportunities in South Korea and Thailand.

Mr Chan said: "Optimizing synergies among all business units and maximizing values for our shareholders underpin the essence of our business strategy in 2002. Through acquisitions in the past couple of years, TVH now has four core businesses - Sequent China, Topasia, ADT and DMX Technologies - each of which has the potential of becoming fully-fledged operations of its own right."

ChinaCast Technology, in which the Group holds a 19.9% interest, has already become the largest provider of satellite-based distance learning services in China. ChinaCast provides distance learning services to universities and is also the largest content delivery service provider to primary and secondary schools in China. ChinaCast has also progressed to develop its own brand name content through the acquisition of Qingdao Qidi, a certification training institute, in 2001. Qingdao Qidi operates some more than 20 offline centres in China and there are plans to expand the network to 100 in 2002, further multiplying the accessibility of ChinaCast's niche educational content.

Another area of substantial growth potential for ChinaCast is the provision of professional training to practitioners in need of recognized qualification, such as lawyers and paramedics. This will be pursued through close co-operation with the Ministry of Education.

About TVH
Technology Venture Holdings Limited (TVH, SEHK: 61) is an information technology enabler focusing its systems-integration and software competencies on the banking, finance and telecoms sectors. It aspires to be a catalyst to facilitate the development of digital Asia by serving as a value-added bridge of advanced technology from developed economies and e-solutions demands among enterprises in Asia. Through continued expansion, acquisition and investments, TVH now operates one of the largest banking and finance systems-integration teams in China, and participates in Internet networking and satellite communications operations in Asia. It has four flagship business units, including Sequent China, Topasia, ADT and DMX Technologies.

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Technology Venture Holdings Limited

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