CONTACT:
Edward Wong
Financial Controller
011/852/28107205 or [email protected]
FOR IMMEDIATE RELEASE
CHINA RESOURCES DEVELOPMENT ACQUIRES 80% EQUITY
INTEREST IN SILVER MOON TECHNOLOGIES LIMITED, AN ONLINE
INTERNET HEALTHCARE CONTENT PROVIDER
HONG KONG, (June 30, 2000) -- China Resources Development, Inc. (Nasdaq: CHRB),
today announced that it has acquired an 80% equity interest in Silver Moon
Technologies Limited ("Silver Moon"), a British Virgin Islands corporation, for
a total consideration of U.S.$1,500,000 (the "Purchase Consideration"). The
Company shall satisfy the Purchase Consideration by the issuing to E-link
Investment Limited ("E-link") 244,897 shares of unregistered restricted common
stock of the Company. Neither E-link nor Silver Moon is affiliated with any
officer, director or significant shareholder of the Company.
The principal business of Silver Moon and its subsidiary (collectively the
"Group") is the provision of online Internet heathcare content, through its
website medi-china.com, which was formally launched in January of this year and
offers health-related content in both English and Chinese with a focus on
Chinese herbal medicine and therapies.
Ching Lung Po, the Chairman and President of China Resources Development, Inc.
said, "The proposed acquisition represents a good opportunity for the Company to
engage in the high-growth information technology market. Health and medicine is
one of the fastest growing areas of interest on the Internet. Chinese herbal
medicine and therapies have a broad appeal in Asia and are also gaining
recognition in other developed countries as alternative medicines. Our Board
believes that medi-china.com is one of the first websites to provide
health-related content with focus on Chinese herbal medicine and therapies on
the Internet. The website provides an instructive and user-friendly platform
through which a user may access a wide variety of categorized health-related
content targeted at users having different requirements. We intend to provide an
unique solution to users of medi-china.com that integrates the delivery of
online information and the provision of consultation services and health-related
products."
"This is our first investment in the information technology market, and we shall
continuously look for other investment opportunity with high growth potential."
said Ching Lung Po."
China Resources Development, Inc. with offices in Hong Kong and the Hainan
Province of the PRC, through a subsidiary, has owned a 61% interest in Hainan
Zhongwei Agricultural Resources Co., Ltd. ("HARC"), the former leading
distributor of natural rubber in China. Pursuant to a restructuring agreement
dated March 3, 2000, the natural rubber business and the materials and supplies
procurement business of HARC were ceased effective January 1, 2000.
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Except for the historical information in this press release, it includes
forward-looking statements that involve risks and uncertainties, including but
not limited to, uncertainties as to the level of interest in health-related
topics and traditional Chinese herbal medicine and therapies among Internet
users, quarterly fluctuations in results, dividend income receivable, the
management of growth, market dynamics and other risks detailed from time to time
in the Company's Securities and Exchange Commission filings. Although the
Company's management believes that the expectations reflected in such
forward-looking statements are reasonable, it can give no assurance that such
expectations will prove to have been correct.
