t6pr.com - DVN (Holdings) Limited (500)

Hong Kong, January 15, 2004 - DVN (Holdings) Limited (SEHK stock code: 500), China's leading provider of digital cable TV services, today announced that it had entered into a contract for the sale of digital TV broadcasting platform to Hunan Network, valued at more than HK$10 million. This represents a second major contract won by DVN in 2004 since the one with Qingdao Broadcasting Bureau in early January. The contract also includes the sale of 200,000 units of digital TV receivers (also known as set top boxes) to Hunan Network. Pilot testing of the front-end particulars of digital broadcasting in Hunan was completed earlier this month and with the progressive installation of set top boxes, it is expected that digital TV broadcasting can be extended to the majority of the province within this year.

There are 14 major cities in Hunan with a population of 3 million Cable TV users. The number of digital TV channels almost tops 80, including seven professional channels on movies, drama series, and trends, etc. Changsha, the provincial capital of Hunan, took the lead to launch advanced digital broadcasting in mid-2003, followed by the availability of digital TV in Shaoyang, another major city, on January 9, 2004. Altogether there are some 10,000 digital TV users in both cities and the number of subscribers is growing fast.

Towards the end of last year, China's State Administration for Radio, Film and Television ("SARFT") announced the target of a full digitalization of TV broadcasting by 2015. Hunan, one of the pilot provinces/cities to complete the initial phase of digital broadcasting before 2005, has underlined Hunan Network's decision to partner with DVN that has a strategic presence in China to facilitate the province's full migration to digital broadcasting.

Mr Terry Lui, CEO of DVN, said: "Hunan is a pioneer province in Cable TV development with a prospering Cable TV industry. Cable TV production units in the province have produced many of the large-scale drama series. With its leadership in TV content, it is inevitable that Hunan is a focus province for digitalized Cable TV broadcasting. The partnership of DVN and Hunan Network can facilitate the progress of this digitalization process."

The strategic partnership between DVN and Hunan Network extends beyond the provision of digital broadcasting technology and software support. Both parties will leverage on their relationship to provide value-added services on digital TV platform, including electronic government, business, finance, online games, SMS and e-banking.

Mr Lui said: "DVN's contract with Hunan Network will help further enhance sales of set top boxes and income from value-added services. With significant contracts clinched at the start of 2004, coupled with the progressive development of digital TVs in China, the management is optimistic as to the growth prospects in the coming year."

About DVN
DVN (Holdings) Limited (SEHK: 500) is a leading media technology company specializing in the 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 technologically advanced yet cost effective digital TV platform, custom-made for PRC operators, has made it a key player in making digital broadcasts in China a reality. DVN has so far installed over 20 digital broadcasting systems in more than 10 municipalities and provinces to enable the rollout of a range of channel rebroadcasts, near video on demand, online information, interactive advertising and TV-commerce services. A nationwide survey report conducted by the Academy of Broadcasting Science, SARFT of China in 2002 ranked DVN's branded set top boxes the highest in adoption rate amongst TV operators in the country. Based in Hong Kong and listed on the Stock Exchange of Hong Kong in 1989, DVN has been operating in the technology sector since 1982.