Hong Kong, April 24, 2002 - IT products distributor and e-enabling solution provider Artel Solutions Group Holdings Limited (SEHK: 931), today announces their annual results for the year ended December 31, 2001. The Group had a remarkable year, with record turnover and profits. In the year, the Group achieved an impressive growth of approximately 45% in both turnover and profit attributable to shareholders to HK$1,415 million and HK$117 million respectively, with earnings per share up 38.1% to HK8.7 cents. The directors recommend the payment of a final dividend of HK 2 cents.

In the year under review, the Group achieved remarkable revenue growth in its distribution business, in particular for the sale of Intel boxed CPUs.

"Revenue from boxed CPU and motherboard distribution jumped significantly as a result of the Group's continued effort in strengthening the Group's channel network in the PRC as well as the surge in demand for the products in the PRC markets. Both the PRC clone Personal Computer makers and Do-It-Yourself market have a great demand for the products and the Group continues to be one of Intel's major distributors in the Asia Pacific region," noted Mr. Danny Yu, Chairman, Artel Solutions Group Holdings Limited.

The Group has successfully extended and expanded its scope of business to include the followings in its business portfolio in 2001: The sole distributor of F5 Networks in Greater China region, Intel Solution Center's testing and optimizing service distributor in Asia Pacific region, as well as Intel-Dialogic and Xircom Products distributor in the PRC.

From January 2002, the Group has been graciously granted the PRC distribution right for Intel tray CPU. Leveraging on the Group's strong distribution capability and with a high demand from regional and small original equipment manufactures (OEM) of personal computers, the Group is confident of a significant sales growth which will in turn bring in an additional stable source of revenue for the Group in the coming year.

For brand building and enhancement, in January 2002, the Group also commenced the distribution of "Arcon" motherboards under its own brand name.

In view of the growing popular use of mobile and wireless communication, the Group's experienced management with a strong marketing sense has been developing its operations in the area of mobile and wireless business application solutions. To respond quickly to the business trend, the Group cooperates with Intel and various solution providers of mobile and wireless business applications in providing a comprehensive package of mobile and wireless solutions to the enterprises.

With the PRC's accession to World Trade Organization and the continuous substantial growth of the Mainland's economy, a high growth in demand for IT products is envisaged. Leveraging on the Group's established distribution network, the Group will be best positioned to capture such valuable business opportunity in broadening its product scope, expanding its revenue sources as well as enhancing its technical capability.

"We have a successful year in 2001 and thanks to the support from our investors, fellow directors, business partners and alliances as well as the hard work of our staff, we are proud to announce the Group's achievement in the year. Looking forward, we would continue to look for opportunities to further extend, expand and develop our business in the areas of IT products distribution and e-enabling solution services," concluded Mr Danny Yu.

About Artel Solutions Group
Artel Solutions Group (SEHK: 931) is a hi-tech company specialized in distributing IT products and the provision of integrated e-enabling hardware and software solutions. Apart from achieving an outstanding track record in the distribution of computer components, IT and networking products, ARTEL has successfully developed an effective distribution network and built up a strong client relationship network. ARTEL's corporate objective is to provide comprehensive e-enabling solutions and the convenience of one-stop shopping services offering its clients a wide range of products including computer accessories (processors, motherboards, hard discs, mobile storage devices etc.), network products (switches, routers, network interface cards, hubs and other state-of-the-art internet storage and server appliance), as well as e-business application software and services. Headquartered in Hong Kong, ARTEL has access to over 5,000 authorized dealers, 700 authorized value added resellers and system integrators in the PRC through its nine exclusive PRC sub-distributors located in 17 major cities in the PRC.

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Artel Solutions Group Holdings Limited

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