Mr Terry Lui, CEO of DVN said: "Last December, China's State Administration for Radio, Film and Television ("SARFT") has announced its intention to convert PRC's TV broadcasting process through different phases of migration to digital broadcasting. As a starter, 30 million subscribers will be able to enjoy digital broadcasting by 2005. SARFT's nationwide target effectively opens up an immense market demand for DVN set top boxes and TV digital broadcast services. The DVN Group believes that its undisputed edge and expertise in China's digital broadcast technology standards together with Hisense's strength in consumer electronics R & D, production as well as sales, not to mention its economic strength, will make this new partnership a match, resulting in the best synergy, and putting the partners in a very strong position for their lion share in the rapid development and introduction of digitalisation for China TV broadcast and the promotion of its popularity and everyday usage."

Being the top name in consumer electronics in China, Hisense has full capability to manufacture plasma, LCD, projector and CRT types of high resolution TVs, which are then made available for distribution and sales through its comprehensive nationwide distribution network that also offer reliable after sales services. DVN can certainly work together with Hisense to build on latter's current premier position in the PRC TV market to jointly further develop, explore and foster an even closer network and working relationship to enjoy the best of both worlds by utilizing and installing the DVN set top box function in the next generation of Hisense digital TVs.

DVN was the first in the PRC market in its role as technology and services provider for PRC digital TV broadcast and has since established its presence in more than ten major municipalities and cities with a growing number of subscribers for the digital TV technology platform provided for local cable TV operators. During the first half of 2003, DVN's digital set top box sales increased by 141% compared to the first half of 2002. Mr Lui concluded: "We are confident that with the support of our steady and continuous income flow from our core business in providing a full range of technology support and other related value-added services for TV operators and subscribers, we will be able to consolidate our revenue by building on our already sturdy foundation and look forward to greater expansion through our cooperation with Hisense and grow our target number of subscribers to a record level."

About DVN
DVN (Holdings) Limited ("DVN") (SEHK: 500) is a leading media technology company specializing in development of comprehensive digital broadcast platforms for TV operators over which Pay TV services, programme contents, related value added services and applications to end-users are delivered. DVN's business spans from creating hardware, software and digital receivers ("set top boxes") on digital TV platforms at both head-end and end-user levels to enable a service provider to run a digital broadcast business, to providing related value added services on the digital platforms. DVN's technologically advanced yet cost effective digital TV platform that can be custom-made for cable TV markets in the PRC has made DVN a key player instrumental in making digital broadcasts in China a reality. DVN has so far already installed over 20 digital broadcasting systems in more than 10 municipalities and provinces in the PRC. A range of value added services are currently being provided by DVN on digital TV platform at affordable cost for channel rebroadcasts, near video on demand, on-line information, interactive advertising, TV-commerce etc. Based on the PRC's nationwide survey report "Economic Research Analysis of digital Set Top Box Technology for Cable TV Operators" conducted by the 'Academy of Broadcasting Science, SARFT of China' in 2002, the DVN's brand set top boxes ranked the highest in the adoption rate amongst the TV operators in China. Based in Hong Kong and listed on the Hong Kong Stock Exchange in 1989, DVN has been operating in the technology sector since 1982.

About Hisense
Ranked number 6 in the country, Hisense Electric Company Limited ("Hisense") (Shanghai Stock Exchange code: 600060) is one of the biggest and most advanced PRC information technology industry players, with annual turnover of close to 2 billion RMB and a digital TV R & D research department boasting top-level PhDs researchers. It was given the honour to participate in live broadcast for PRC National Day in 1999, celebrating 50 years of nation building. Its full range of over 20 digital TV products which incorporate its 4 main product lines of plasma, LCD, high resolution CRT and overhead projector, has won critical acclaim both at home and abroad, such as the annual Las Vegas Digital Expo. In fact, they have been acknowledged to be built to a similarly high standard as that of equivalent products in the US and other European developed countries, all of which have recently become keen importers of Hisense high-end plasma and LCD TV products. On the eve of the launch of the nation's digital TV broadcast, Hisense's team leader position as the country's premier digital TV standard connection unit, Hisense should be in the best position to capitalize on its obvious technological advantage to become the key link between the digital TV subscribers and the broadcasting units. Boasting a strong sales and services network, Hisense has over 200 sales and distribution offices and services centres with a network of over 10,000 maintenance services points across the country.