09.09.99 USA: HARTCOURT TO CONVERT 15 PERCENT OF STOCK OPTIONS IN UAC ONLINE STOCK TRADING.
LONG BEACH, Calif., Sept. 9 /PRNewswire/ - The Hartcourt Companies, Inc., (OTC Bulletin Board: HRCT) announced today that it has agreed to convert its loan to UAC Online Stock Trading Inc. into an additional 15 percent of ownership of UAC, pending approval from the Chinese government. This conversion will make Hartcourt a 50-percent partner in UAC.
UAC is the first and only electronic stock trading company in China, using Chinapac network of China Telecom to connect investors and brokerage houses. There are 4,000 brokerage offices in China, servicing more than 40 million investors. UAC operating system has been in operation at 3 brokerage offices in Beijing and will be installed at 12 more offices in the next few weeks. UAC has a contract to connect all 98 offices of Hua Xia Securities, the second largest brokerage house in China.
Dr. Alan Phan, Chairman and CEO of Hartcourt, comments, "UAC is generating profit on each and every brokerage office it services. If we could connect 500 offices as planned by next year, our net earning would exceed $5 million in 2000. Considering the headstart UAC currently enjoys as the first and only on-line stock trading in China, it is easy to understand our enthusiasm for the future of this E-Trade of China. With the consent of the Chinese partners, Hartcourt will bring UAC to the market place in an IPO planned for August 2000."
Hartcourt recently announced that it has agreed to acquire 58 percent of Financial Telecom Ltd. of Hong Kong (FTL). FTL is a financial data bank providing real time stock quotes and other information of Hong Kong-listed companies to institutional and retail investors. FTL maintains a financial portal, www.asianetvest.com.hk, and has been in business for 16 years. It had HK$16.6 million in revenues in 1998. Both UAC and FTL are profitable.
Dr. Phan continues, "Our mission is to become the leading Internet company in China. With the acquisition of 50 percent of UAC and 58 percent of FTL, we have created a major platform to roll up other profitable Internet companies. We are already a powerhouse in the China Internet industry."
Note: Certain statements in this news release may constitute "forward-looking" statements within the meaning of Section 21E of the Securities Exchange Act of 1934. Such forward-looking statements involve risks, uncertainties and other factors, which may cause the actual results, performance or achievement expressed or implied by such forward-looking statements to differ materially from the forward-looking statements.
SOURCE Hartcourt Companies, Inc. -0-09/09/1999
/CONTACT: Alan V. Phan, Chairman of Hartcourt Companies, Inc., 562-426-9796/
/Web site: www.asianetvest.com.hk/
/Web site: www.Hartcourt.com/
PR NEWSWIRE 09/09/1999