Letter from Dr. Alan Phan:
January 13, 2000
Dear Shareholders:
This will be a short letter just to update you on the
progress we made during my last trip to China. The
objectives of the trip were to consolidate our work
in important projects and to negotiate on a few new
deals.
1. Sinobull.com
We had a meeting in Shenzhen with all 5 operating
entities together with 2 investment banking groups
to complete details of shareholding structure,
management responsibilities and data projections
required by Ernst & Young. We will soon announce
the names of the CEO and the Board of Directors.
They are world-class executives in the Chinese
Internet industry. As for the IPO, we have already
received 2 preliminary underwriting offers and 1
investment proposal, but we are still in negotiation
for the solution that best fits Hartcourt and
SinoBull.com. The firms with which we are discussing
this project include Merrill Lynch, Morgan Stanley,
Lehman Brothers, Prudential, Chase, ING Barings,
Hong Kong Shanghai Bank (HKSB), DLJ, Societe General,
Banque National De Paris, Jardine Fleming, JP Morgan
and GE Capital. Four of these firms have sent their
teams to Beijing, Shanghai and Hong Kong to do due
diligence. Of course, we can only work with one or
two of these companies, but I name all of them so
that you know we work only with the best. Due to the
shortage of quality Chinese Internet firms in the
stock market, Sinobull.com, with its existing
revenue and market positions, is a heavily
sought-after IPO company.
2. Innostar
We negotiated (and should have a term sheet
agreement signed within weeks) with a well-known
Chinese Internet firm that holds a sizable market in
ISP connectivity for schools and universities. It
will bolster our wireless ISP via satellite strategy.
At the same time, another IP phone provider with
strategic licensing wants to join the Hartcourt
family for expansion in tandem with our IP phone
project. Esat will join our Innostar joint venture
to complete 10 gateways in 10 large cities for our
Chinese IP phone system.
3. New Acquisition
We were offered and accepted an investment in the
third largest Internet company in China (after
Chinanet of China Telecom and GB Net of Ji Tong).
This billion-dollar company plans an IPO of its own
in 2001. Details are being worked out. Once
competed,it will be Hartcourt's biggest achievement
of all.
In short, we are consolidating our gains and continue
to move forward with a speed that has surprised even
me. It adds a tremendous workload to our already busy
schedule. However, we are attracting quite a few
high-caliber talents, which should help us manage the
growth smoothly. Details on our Nasdaq listing,
Enova, CEO, Directors, etc. will be discussed with
the shareholders at our Jan 15th party and will be
relayed to all of you via our Web site.
The next two months will be full of results, more
than we had even in December of last year. I told you
that 2000 would be a better year for Hartcourt.
Sincerely,
Dr. Alan V. Phan
Chairman & CEO
Certain statements in this letter 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 achievements
expressed or implied by such forward-looking
statements to differ materially.
Frank Scheunert
Hartcourt Inc.
Investor Relations Europa
Harffstr.199
40591 Duesseldorf
Germany
Tel 0211 2108970
www.hartcourt.com
January 13, 2000
Dear Shareholders:
This will be a short letter just to update you on the
progress we made during my last trip to China. The
objectives of the trip were to consolidate our work
in important projects and to negotiate on a few new
deals.
1. Sinobull.com
We had a meeting in Shenzhen with all 5 operating
entities together with 2 investment banking groups
to complete details of shareholding structure,
management responsibilities and data projections
required by Ernst & Young. We will soon announce
the names of the CEO and the Board of Directors.
They are world-class executives in the Chinese
Internet industry. As for the IPO, we have already
received 2 preliminary underwriting offers and 1
investment proposal, but we are still in negotiation
for the solution that best fits Hartcourt and
SinoBull.com. The firms with which we are discussing
this project include Merrill Lynch, Morgan Stanley,
Lehman Brothers, Prudential, Chase, ING Barings,
Hong Kong Shanghai Bank (HKSB), DLJ, Societe General,
Banque National De Paris, Jardine Fleming, JP Morgan
and GE Capital. Four of these firms have sent their
teams to Beijing, Shanghai and Hong Kong to do due
diligence. Of course, we can only work with one or
two of these companies, but I name all of them so
that you know we work only with the best. Due to the
shortage of quality Chinese Internet firms in the
stock market, Sinobull.com, with its existing
revenue and market positions, is a heavily
sought-after IPO company.
2. Innostar
We negotiated (and should have a term sheet
agreement signed within weeks) with a well-known
Chinese Internet firm that holds a sizable market in
ISP connectivity for schools and universities. It
will bolster our wireless ISP via satellite strategy.
At the same time, another IP phone provider with
strategic licensing wants to join the Hartcourt
family for expansion in tandem with our IP phone
project. Esat will join our Innostar joint venture
to complete 10 gateways in 10 large cities for our
Chinese IP phone system.
3. New Acquisition
We were offered and accepted an investment in the
third largest Internet company in China (after
Chinanet of China Telecom and GB Net of Ji Tong).
This billion-dollar company plans an IPO of its own
in 2001. Details are being worked out. Once
competed,it will be Hartcourt's biggest achievement
of all.
In short, we are consolidating our gains and continue
to move forward with a speed that has surprised even
me. It adds a tremendous workload to our already busy
schedule. However, we are attracting quite a few
high-caliber talents, which should help us manage the
growth smoothly. Details on our Nasdaq listing,
Enova, CEO, Directors, etc. will be discussed with
the shareholders at our Jan 15th party and will be
relayed to all of you via our Web site.
The next two months will be full of results, more
than we had even in December of last year. I told you
that 2000 would be a better year for Hartcourt.
Sincerely,
Dr. Alan V. Phan
Chairman & CEO
Certain statements in this letter 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 achievements
expressed or implied by such forward-looking
statements to differ materially.
Frank Scheunert
Hartcourt Inc.
Investor Relations Europa
Harffstr.199
40591 Duesseldorf
Germany
Tel 0211 2108970
www.hartcourt.com
