Hong Kong, October 24, 2001 - Information-on-demand (IOD) system solutions provider IA International Holdings Limited (HKGEM: 8047) today announces its plan to list on the GEM board of the Stock Exchange of Hong Kong by way of placing. The Company will place 55 million new shares at an issue price range between HK$0.42 and HK$0.40. The price determination date is expected to be on or around October 26, 2001, and dealings in the Company's shares on GEM, November 1, 2001. Vickers Ballas Capital Limited was appointed the sponsor and lead manager, with Kingston Securities Limited as the joint lead manager.

IA International engages in the research and development of proprietary IOD system solutions which comprise an e-commerce platform and Internet appliances. With these two components, users will be able to access compressed content stored in specially formatted DVDs through the Group's Internet appliance after obtaining authorisation from the e-commerce platform via the Internet. The e-commerce platform, designed with security enhancements to facilitate protection of intellectual properties and billing functions, is expected to have the trial run in the first quarter of 2002. The IOD system solution is planned to be fully launched by the first quarter of 2003.

"While the world's commerce continues to be moved online, there are still a number of issues which need to be tackled before e-commerce operations can function effectively. These critical issues include: (1) security; (2) billing; (3) payment; and (4) logistics. IA's IOD system solutions are designed to address all these issues in a cost-effective approach," noted Mr Chiu Ting San, Chairman and Chief Executive Officer of IA International.

IA International has developed a common interface protocol for its e-commerce platform and Internet appliance that operates on the Group's proprietary operating system (OS) with built-in security functions. For further protection, the content is compressed and stored in specially formatted DVDs, viewing of which will require authorisation from the Group's e-commerce platform.

Mr Simon Cheng Kwok Chung, IA International's Deputy Chairman and Chief Operation Officer continued, "With our IOD system solutions, content will be provided on specially formatted DVDs, with authorisation required from our e-commerce platform via the Internet. Reliance on the Internet can therefore be significantly reduced, giving us an advantage particularly in markets where broadband infrastructure are underdeveloped. Implementation costs of our IOD system solutions are very low because they are Internet enabled and do not require the construction of a costly dedicated network."

Potential clients of the Group's IOD system solutions include content providers, such as educational institutions and movie distributors, and government agencies. The business roll-out of the Group will begin with content providers targeting consumers in the PRC, with the Guangdong province being identified as its first target market. As part of its marketing initiatives, the Group plans to set up an office in Guangzhou by the end of 2002, and to increase the size of its sales team on the mainland. To strengthen its technological edge, the Group also intends to recruit additional R&D engineers and to engage research institutions and outside technology providers.

The business model of the Group under planning envisages revenue streams from initial set-up fees for the design and implementation of the system, as well as on-going technical service fees under revenue sharing schemes.

Since its inception in 1998 to undertake research in IOD system technologies, the Group has also commenced the development of its first series of Internet appliances, which now include a range of set-top box, auto DVD for use in automobiles, iDVD, a DVD player with Internet access, and iTV, a television set connected to a telephone line on narrow bandwidth. As a result of the Group's development of its secured e-commerce platform, it was invited by Shenzhen E-Commerce Centre in March 2001 to jointly develop an e-Tax platform for Shenzhen Tax Bureau. e-Tax will be the designated tax related online platform for Shenzhen Tax Bureau and businesses enterprises in Shenzhen.

"We see tremendous upside in the deployment of our IOD system solutions in the PRC and other markets. We plan to step up our marketing efforts following the trail run of the system, with the long term objective of establishing sustainable brand equity for our 'IA' brandname. Going forward, we will continue to strengthen our positions both on the marketing and technological fronts, in preparation for the rolling out of our full business plan in 2003," said Mr Chiu.

The net proceeds of the Group's placing are estimated to be about HK$15 million based on the mid-point of the stated price range. The Group intends to use HK$9.3 million to develop and enhance the infrastructure of the e-commerce platform; HK$3 million on marketing and brand building activities; HK$2 million for R&D of Internet appliances; and the remaining balance as general working capital.

IA International Holdings Limited engages in the research and development of proprietary information-on-demand (IOD) system solutions which comprise a secured e-commerce platform and Internet appliances. The IOD system solution is planned to be fully launched by the first quarter of 2003. The Group is headquartered in Hong Kong with an R&D centre in Shenzhen, the PRC.

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IA International Holdings Limited

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