Hong Kong, September 16, 2001 - Shenzhen High-Tech Holdings Limited ("Shenzhen High-Tech") (SEHK: 106) has announced its unaudited consolidated results for the six months ended June 30, 2001. In the six months to June 30, 2001, the Group recorded a turnover of HK$58,906,000, up 13.6 times from HK$4,040,000 for the same period last year. During the period under review, the Group was able to turn the business around. Operating profit and profit attributable to shareholders for the six months ended June 30, 2001 were HK$12,403,000 and HK$10,957,000 respectively. The directors do not recommend the payment of an interim dividend.

The Group has completed the acquisition of the entire interest of Dawning Information Industry Company Limited ("Dawning") on June 4, 2001 for a consideration of RMB215,000,000 (approximately HK$210,000,000). Dawning recorded a net profit of around RMB8 million in year 2000 and during the review period, Dawning's business contributed a post-acquisition profit of over HK$10 million to the Group's consolidated results. As the Group executes its strategy of seeking opportunities to realize its properties and concentrates its resources in the investments of profitable advanced technology-oriented business operations, the Group has no need to make provisions for diminutions in the value of its properties. The management is confident that the Group's results can be further improved in future.

Dawning is the only UNIX/RISC server manufacturer in China and is the only company in China owning its brand of high performance computers and servers. "Dawning servers' total sales volume is projected to be a few times that of last year. There will be a remarkable increase in the total sales volume of Dawning's servers, especially the Dawning Tianjuo Series PC Servers. As of to date, over a thousand servers has been ordered by the government with a total sales of about RMB130,000,000. There is also a steady growth in the sales for both Tianyan Series UNIX Servers and Tianchao Series Super Servers." Said Dr Li Guojie, Chairman of Dawning.

In June 2001, the Group successfully raised around HK$190,000,000 by placing 750,000,000 new shares. Of the fund raised, HK$70 million was used to expand the production facilities of Dawning and HK$60 million to enhance Dawning's research and development functions. Dawning will continue its technology-oriented and market-driven development strategy to expand its market share and enhance its profitability capability. Dawning also plans to send engineers to the United States and cooperate with expertise there for the research and development of mainboards of high performance servers based on POWER PC. In addition, Dawning has been collaborating with Ministry of Information Industry to research and develop high performance national security servers.

"The Group will continue to pursue its business focus in advanced technology and information industry and will be actively on the lookout to identify businesses with innovative capabilities, profitability track records, good management and development prospect, through different forms of cooperation and investments, to further expand, extend and develop our business operations." Said Mr Gong Hanbing, Director of Dawning, Executive Director and President of Shenzhen High-Tech.

With the management devoting keen efforts in reorganizing its business operations in recent years, the Group has at the same time been focusing in developing business operations in the area of advanced technology in Greater China. In July, 2001, the Group signed an agreement with Wuhan Jingke Information Science & Technology Investment Co. Ltd. according to which the Group will, on a step-by-step basis, invest a total of approximately RMB35,000,000 in the capital of Wuhan Jingke Information Industry Co. Ltd., ("Jingke Information"). The Group will hold 51% interest in Jingke Information upon the completion of capital injection. To date, the Group has already invested approximately RMB8,000,000 in this venture. Jingke Information principally engages in manufacturing high frequency quartz oscillators used in various types of timers, wireless communication equipment and computers. The total turnover and gross profit of Jingke Information in year 2000 was around RMB30,000,000 and RMB6,000,000 respectively. Jingke Information is planning to expand its business scope and projects a remarkable growth both in turnover and net profit.

"With the China's imminent accession to the WTO and Beijing's awarded hosting of 2008 Olympics, it is envisaged that there will be a growing needs and a surge in demand for the application and development of information technology. The Group will continue to look for investment opportunities in high quality advanced technology and take further steps in expanding our scope of business in the area of information industry and advanced technology." Concluded Mr Gong.

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 management devoting keen efforts in reorganizing its business operations in recent years, the Group has accomplished its debt restructuring and business repositioning exercise. In June 2001, the Group has completed the acquisition of the entire interest of China's only UNIX/RISC server manufacturer and distributor, Dawning Information Industry Company Limited ("Dawning"). The Group's financial status is stable and healthy and except for the HK$10,467,290 non-interest bEarning convertible notes issued as a part of the consideration for the acquisition of Dawning, the Group has no borrowings to date.

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