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For Immediate Release
Hong Kong, May 15, 2001----TOM.COM LIMITED ("Tom") and PC Home Publication Group Ltd. ("PC Home") jointly announced today that Tom has signed a framework agreement with PC Home and Cit
Publishing Ltd. ("Cit"), and Messrs. Jan Hung-Tze and Ho Fei-Peng, (key management of PC Home and Cit) whereby Tom will acquire a significant interest in a new company to be formed ("Newco") that will leverage its position in the book and magazine publishing and distribution business in Taiwan to develop into the largest Chinese media platform.
Pursuant to the framework agreement, PC Home and Cit will undergo a restructuring whereby Newco will be established and all the book and magazine publishing and distribution businesses of PC Home and Cit will be consolidated, owned and operated by the Newco.
Tom intends to take a 49% equity interest in the Newco for a consideration of NT$1,301.44 million (equivalent of HK$309.87 million) of which NT$748.33 million (equivalent of HK$178.17 million) is payable by cash and the balance of NT$553.11 million (equivalent of HK$131.69 million) will be satisfied by the issuance of new shares of Tom at HK$5.51 per share.
It is the common objective of Tom and PC Home to jointly develop Newco into the largest Chinese media platform in the Greater China Region by leveraging the combined strengths and resources of both Tom and PC Home. It is also the objective of Tom and PC Home to seek a listing of the Newco on a reputable stock exchange (including The Hong Kong Stock Exchange) at the earliest appropriate time.
The decision to reorganise PC Home and Cit into Newco for Tom to invest was the first step by Tom and Mr. Jan Hung-Tze, CEO of PC Home and Chairman of Cit, to lay the foundation for the largest Chinese media platform which will be growing through acquisitions in Mainland China and other parts of the Greater China Region. Growth will also come from extending the successful franchises of PC Home and Cit to Mainland China and elsewhere.
Tom and PC Home intend for Newco to be an open platform which will welcome potential new partners in the fields of magazine, newspaper and book publishing as well as other forms of media.
"The formation of Newco is a huge step forward for Tom. Our cross-media strategy is now firmly established. We are honoured to be teaming up with perhaps the best team in Chinese language original content creation. Mr. Jan and his team have grown from one magazine five years ago to a group with HK$500 million in revenue. Together we can accomplish a great deal more in the next five years." said Sing Wang, CEO and Executive Director of TOM.COM LIMITED.
"The investment by Tom will bring to PC Home and Cit complementary strengths and resources which will enable PC Home Group to expand into the Greater China Region and become the largest Chinese language media group," said Mr. Jan Hung-Tze.
This print media investment is the most significant investment of Tom since its listing.
About PC Home and Cit(u).gif)
PC Home is the leading magazine and publication group on IT, personal finance, learning and lifestyle in Taiwan. Established in 1995, PC Home has already become the largest magazine publisher in Taiwan. The company has expanded rapidly from one magazine to over 16 magazines, many of them leading titles with large followings of a young readership. Total circulation of its magazines and periodicals totaled an estimated 16 million copies last year. In 2000, regular subscribers numbered over 300,000 for eight of its most popular magazines. Currently, four of its magazines are circulated in Mainland China including PC Home which has a circulation of 360,000 copies.
Cit is formed based on the ancient Greek philosophy of city-state by merging three independent publishing houses in 1996. As the leading Chinese book publisher, over 6 million copies were printed in 2000. Cit now owns 18 publishing brands which are mostly leaders in their fields. For example, Rye Field Press is the leader in literature; Owl Publishing is popular for its reference books; Faces Publishing is best known for mystery fictions and Mook is the best brand Chinese language travel literature. Cit is also the top book exporter in Taiwan and has fully established distribution channels in Hong Kong and Malaysia.
PC Home and Cit are originally separate companies. In 1996 revenue of PC Home alone was only NT$150 million. Under the leadership of Mr. Jan Hung-Tze, both companies have worked closely since 1997. Combined revenues of PC Home and Cit reached approximately NT$ 2.0 billion (approximately HK$476 million) in year 2000.
About TOM.COM LIMITED
TOM.COM LIMITED was founded in October 1999. Tom is a joint venture of Hutchison Whampoa Limited, Cheung Kong (Holdings) Limited and other strategic investors. Tom was listed on the Growth Enterprise Market (GEM) of the Stock Exchange of Hong Kong in March 2000 (stock code: 8001). Tom's head office is in Hong Kong, with regional offices in Beijing, Shanghai, Guangzhou and Kunming.
Tom has pioneered the cross-media strategy, building a portfolio of online and offline media assets through acquisitions and organic growth. Tom's business now includes outdoor media advertising, Kunming Fench Star Information Industry Ltd. (Fench Star) and Shanghai Maya Cultural Transmission Company Ltd. (Shanghai Maya Cultural); sports-related content, event management and advertising, YC Companies; magazine publishing, Yazhou Zhoukan; online media businesses, CN TOM, HK TOM, 163.net, Shawei.com; and broadband content and services provision, Shanghai Maya Online Broadband Network Company Ltd (Shanghai Maya Online) and GreaTom.
Tom has established itself as a leading brand in Hong Kong and Mainland China. Its cross-media platform has successfully positioned the company as a leading provider of total advertising solutions.
Press enquiries:-
Rachel Chan, TOM.COM LIMITED
Tel: (852) 2121 7810; Fax: (852) 2127 7576; e-mail: rachelc@hk.tom.com
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