Mr. Terry Lui, DVN's Chief Executive Officer, said, "DVN is pleased to have Motorola as its strategic partner. By working together, DVN and Motorola will be able to capitalize on each company's respective strengths, and hence accelerate the deployment of digital home terminals (also known as set top boxes) in China." With video, data, and voice beginning to converge around the world, Motorola with its strengths in broadband and hardware; and DVN with its presence in China and strengths in application software for the China market, will be able to provide the technology to facilitate this convergence in China. DVN believes that the digital cable market is about to expand rapidly as China's State Administration for Radio Film and Television ("SARFT") has announced plans to migrate 30 million cable subscribers to digital within the next several years, with the analog service to be completely cutoff by 2015. There are currently over 100 million cable TV subscribers in China.

According to Mr. Lui, "with the agreements, DVN gains as a strategic partner, the world's leading provider of digital cable technology; and ensures that DVN remains a technology market leader in China. Motorola is involved in all aspects of digital broadband technology, from headend system solutions to consumer terminal products, and is the market leader for set-top terminals in the United States. With Motorola, DVN will now have a strategic partner with the requisite experience and expertise to help ensure that its digital cable deployments are successful."

Pursuant to a subscription agreement entered into between DVN and a subsidiary of Motorola, Motorola may invest up to a maximum of US$33 million in four tranches. (equivalent to approximately HK$257.4 million), of which US$18 million is at Motorola's discretion. The price per share to be paid by Motorola will not be finalized until the time of each investment. If Motorola invests the maximum amount contemplated by the subscription agreement, it will own over 30% of the outstanding ordinary shares of DVN. DVN will use the proceeds of the investment for capital expenditures to upgrade the existing digital systems of the group, research and development, and general working capital. Motorola agreed to hold the ordinary shares of DVN that are acquired pursuant to the subscription agreement for one year after completion of the first tranche investment, subject to certain conditions remaining satisfied during that period. Motorola is entitled to appoint a Board seat under the terms of the agreement.

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. In 2004, DVN was named "The Best Set Top Box" by the first "Digital TV Public Polls", and awarded "Top Quality Brand" in digital TV market by the "China Survey on Customer Satisfaction". 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.