Hong Kong, April 23, 2001 - Shenzhen High-Tech Holdings Limited ("Shenzhen High-Tech") (SEHK: 106) announces that the acquisition of the entire interest of Dawning Information Industry Company Limited ("Dawning") held by Beijing Dawning Computer Corporation, Shenzhen Investment Holding Corporation, Chongqing Zhaohua Science and Technology Company Limited, Sichuan Provincial Investment Group Company Limited and Beijing Hi-Tech Company Limited for a total consideration of RMB215,000,000 (approximately HK$201,000,000) was approved in the special general meeting of the Company held today. According to the report submitted by American Appraisal Hongkong Limited to the Group's Board of Directors, Dawning was valued at RMB387,000,000 (approximately HK$362,000,000) as of February 28, 2001.

The acquisition has been officially approved by the China Securities Regulatory Commission ("CSRC") on January 18, 2001 and the sale and purchase agreement was formally signed on March 8, 2001.

Dawning's mission is to become the backbone enterprise in information technology in China. It is the only UNIX/RISC server producer in China and is the only company in China that has the capabilities to produce an extensive range of different grades of computer servers with a price range from RMB20,000 to tens of millions of RMB. Dawning is also the only systems integrator in China owning its brand of high performance computers and servers. Its Chairman, Dr Li Guojie, is a famous computer expert and the head of the Computation Institute of the Chinese Academy of Science. The science team under Dr Li's leadership owns many patents of invention and his work earns unreserved technical support from the Computation Institute of the Chinese Academy of Science, the National Research Center for Intelligent Computing Systems and the National Research Center for High Performance Computers. Dawnings promotes and boasts the four management communication concept of its products, they are: serving the network; making alliance to provide integrated solutions; the Dawning services express and the SUMA i.e. the scalability, usability, manageability and availability of its servers to coincide with its product marketing and services support. "Dawning 3000? a new superserver launched in February 2001, receives very encouraging market response and orders rush in even before the official launch of this new product.

Dawning is developing its business in the high performance servers market and has been actively pursuing cooperation with big industries' players, corporate clients, data centers as well as application services providers (ASP). Capitalizing on its already established brand name and reputation, Dawning promotes domestic small servers within the country so as to increase its market share in the servers market. Dawning is also in the process of negotiating with a number of well known multi-national information technological companies and manufacturers to work together on the design, development and production of low to medium range servers as well as the related chips and circuit board with a view to opening up the international market.

"We are very happy to welcome Dawning to join our Group and become one of our Group's core businesses. We shall continue to look out for investment opportunities in high quality advanced technology and take further steps to expand our scope of business in the areas of information industry and advanced technology." Said Mr Gong Hanbing, Executive Director and President of Shenzhen High-Tech.

Shenzhen High-Tech Holdings Limited ("Shenzhen High-Tech") (SEHK: 106) has its business focus on developing business operations in advanced technology and information industry in Greater China. With the new management gradually assuming duties since March last year, the Group has been devoting keen efforts in reorganizing its business operations and has basically accomplished its debt restructuring and business repositioning exercise. In August last year, Shenzhen High-Tech has successfully raised new funds by placing new shares. To date, the Group has no borrowings and a net cash balance on hand of over HK$100 million. The completion of the acquisition of Dawning Information Industry Company Limited ("Dawning? would signify the Group's new focus and further substantiate its operation in advanced technology and information industry.

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Shenzhen High-Tech Holdings Limited

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