Hong Kong, April 28, 2002 - Advanced technology and information industry based holding group Shenzhen High-Tech Holdings Limited ("Shenzhen High-Tech") (SEHK: 106) today announces its audited consolidated annual results for the year ended December 31, 2001. Upon the Group's completion of the acquisition of the entire interest of Dawning Information Industry Company Limited ("Dawning") on June 4, 2002, Dawning became one of the Group's core business operations and a major contribution to the Group's turnover. In the year under review, the Group's turnover surged over 4.8 times to HK$157,577,000 from HK$27,147,000 in 2000. During the period under review, the Group was able to realize operating profit of HK$20,902,000 when compared with substantial losses recorded for years (an operating loss of HK$187,144,000 was recorded in 2000) and recorded profit attributable to shareholders of HK$16,649,000 when compared with a loss attributable to shareholders of HK$209,659,000 in the year before. The Board of Directors did not recommend the payment of a final dividend in 2001.

With the management devoting keen efforts in reorganizing its business operations in the past two years, the Group has successfully transformed into an advanced technology based holding company with a healthy financial status, actual core business operations, strengthened profit generating capability and good development prospect.

Dawning is the only manufacturer specializing in the production of full spectrum of servers including UNIX/RISX in the PRC and is also the only system integrator capable of supplying high-performance computers and high-end servers bEarning its own brand name in the PRC. Dawning has recorded a steady growth both in turnover and operating profit in the past years and it has contributed significantly to the Group's operating profit since it became a member of the Group.

Mr Gong Hanbing, Director of Dawning, Executive Director and President of Shenzhen High-Tech said, "Against the backdrop of a global economic downturn in 2001, some of the IT and advanced technological infrastructure projects have been delayed or scaled down in China. Dawning's business growth in the second half of the year was also affected and slowed down. In coping with the changing market conditions, while continuing to maintain its leading position in super servers market, Dawning has adopted a business diversification strategy and strived to expand its product mix and develop functional servers. The Group is confident that Dawning's business will continue to grow steadily in 2002."

In the year under review, Dawning has successfully established an extensive distribution network throughout China by expanding its distribution channels and set up 30 offices with over 600 distributors and partners.

In recent years, with the popularity of internet and increasing availability and accessibility of online computer, Dawning has capitalized on its established brand name and deployed the state-of-the-art server technology to exploit and develop the PC server market to meet its ever increasing demand. In December last year, Dawning has teamed up with TCL, a well known consumer electronics and electrical appliances manufacturer, under a joint brand name [TCL*Dawning], to pioneer the development of servers for educational use and introduce the specially developed "Solutions for the Education Profession" for promoting and developing information technology in primary and secondary schools.

According to the consultant report "2001-2002 China IT Market Report" issued by CCID Consulting Co., Ltd., the most authoritative information industry supervisory institute in the PRC, Dawning has taken the top and fourth position in market lead for total sales of RISC server and IA server in the PRC and is the third leading brand in the country's league for all brand names of servers for the year 2001, with an overall market share of 17.5%.

In August last year, the Group has invested RMB 8,570,000 in Wu Han Jingke Information Science & Technology Investment Company Limited ("Jingke Information"). The Group will ultimately account for 51% equity interest in Jingke Information. Jingke Information is mainly engaged in the production of quartz oscillators applied in an extensive range of electronic products, including timers, wireless communication equipment and computers. With the capital injection from the Group, Jingke Information plans to build a "Jingke Industrial Park" in Wuhan's Investment Zone for Taiwan Enterprises, with a floor space up to 13,000 square metre, to enhance productivity. The foundation work of the park has already stated on December 18, 2001, with a target completion date in August this year. It is expected that both the sales volume and profitability of Jingke Information will experience major increase for the year 2002, with productivity and technological level further enhanced significantly upon the commencement of production operations in the industrial park. T

he Group has, in addition, acquired a 55% stake in Beijing CPT Bluetus Company Limited ("Beijing CPT") end of last year for the sum of HK$5 million. Beijing CPT was established in August 2000 with its main business in the development of enterprise level of computer network technology and information storage system and in providing consultancy service to various industries in finance, telecommunication and mass media as well as governmental educational bodies for their system applications work, programme solution design and system planning. Through cooperation with Dawning and other major system operators, Beijing CPT has acquired valuable and extensive experience in providing network storage solution, system security solution, monitoring systems and the broadband multi media application platform.

Apart from being the PRC northern regional agent and chief agent for the television and broadcasting sector, education sector of PRC for the internationally well-known high-end storage system manufacturer Seagate, Beijing CPT is also the sole agent in the PRC for the US leading famous broadcasting technology company, Pinnacle Limited, for its high definition non-liner editing system.

Mr Li Heihu, Chairman of Shenzhen High-Tech said, "Advanced technology, logistics and finance industry are the three main business assets of Shenzhen. The Group will take an active role in identifying quality investment opportunities in advanced technology projects that are in their mature or developing stage and with a long-term growth potential. It will also explore the possibility of engaging in the reforming process of the state-owned assets and businesses and at the same time, to develop and increase sources of revenue for the Group and maximize the best return for our shareholders."

Shenzhen High-Tech Holdings Limited ("Shenzhen High-Tech") (SEHK: 106) has its business focus on developing business operations in technology 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 2001, the Group has successfully raised HK$190,000,000 by placing 750,000,000 new shares. The funds were principally used to enhance the production capacity and to further strengthen the research and development capability of Dawning. As of December 31, 2001, the Group's gearing ratio is 0.17 and except for the non-interest bEarning convertible notes issued, the Group has basically no borrowings or long-term debts. The Group's financial status is stable and healthy and has a cash balance of over HK$200 million.