For Immediate Release
Hong Kong, December 14, 2001 - TOM.COM LIMITED ("TOM", stock code: 8001) announced today that it has entered an agreement to acquire 100% of China Travel Network Company Limited ("CTN").
Under a separate agreement, TOM will also acquire 45% of itravel Limited ("itravel") from CTN Holdings. TOM already owns 55% of itravel which operates the travel website www.GoChinaGo.com.
TOM will issue 4,300,000 new TOM shares at HK$5.51 each, totalling HK$23.69 million, as payment for the two acquisitions. After completion of the deal, both CTN and itravel will become wholly-owned subsidiaries of TOM.
CTN's website, www.ctn.com.cn, is a well-established and reputable travel website specialised in providing domestic travel information for the Mainland market. TOM expects strong demand for online travel information with China sustaining steady annual economic growth of 7%, fuelled to a large extent by domestic consumption. China's entry to the World Trade Organisation and the 2008 Beijing Olympics will both spur interest in travelling to China. TOM is set to benefit from the potential China travel boom in coming years given its strong position in online travel content.
CTN's travel website provides comprehensive travel content covering China's 33 provinces, 121 cities and over 3,000 scenic locations. Travel information on international travel destinations spans 23 countries, 108 cities and over 1,000 scenic locations. There are also itinerary recommendations, a message board, China and international travel news, hotel and airline information and travelling tips, targeting business and leisure travellers. The website is ranked No.1 amongst all Chinese travel websites by CNNIC in 2000.
There are cross-licensing opportunities between CTN's online travel content and TOM's other offline media assets such as Cit
Publishing's popular Chinese-language travel guide series - MOOK.
CTN's travel content will also be integrated into TOM's online platform, further strengthening TOM's cross-media platform and enhancing cross-selling opportunities to advertisers.
TOM's Chief Executive Officer and Executive Director Sing Wang said, "With CTN's strong brand in online travel content provision, we are confident of tapping the huge potential of the vast China travel market."
In 2000, China's domestic travellers numbered over 750 million, with related spending totalling US$56 billion. The number of domestic travellers is expected to rise to over 830 million in 2002 with related spending reaching US$77 billion.
About CTN
CTN's existing shareholders are Guangdong Hua Da Kang Investment Co., Ltd (35%), Guangzhou Xinrong Information Industrial Co., Ltd (35%) and China International Travel Service Head Office, the largest travel agency in China, owning the remaining 30%. CTN focuses on the domestic travel market in China. Established in October 1997 with a registered capital of RMB10,000,000, CTN has established a strong brand in the mainland market with a wide membership base.
About TOM.COM LIMITED
TOM.COM LIMITED (TOM) is a joint venture between Hutchison Whampoa Ltd., Cheung Kong (Holdings) Ltd. and other strategic investors. TOM was listed on the Growth Enterprise Market of the Stock Exchange of Hong Kong in March 2000 (stock code: 8001).
TOM has pioneered the cross media strategy, building a portfolio of online and offline media assets through acquisitions and organic growth. Its goal is to be the industry leader in each of its four business segments - sports marketing, outdoor media, print media and Internet portals. TOM is also building a strong platform to offer telecom value-added services.
(http://corp.tom.com/about/en/index.shtml)
For press enquiries: Rachel Chan, TOM.COM LIMITED
Tel: (852) 2121 7810; Fax: (852) 2127 7576; Email: rachelc@hk.tom.com
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