++++++ HARTCOURT+++++INFO+++++

First of all, the summary of my resume is all I will disclose about my background to the public. I am a very private person, not a rock star, not a politician, not a priest; and I don't think I have to share with everybody where I keep my cigars. If you don't like my qualifications, just sell your shares and walk away.  

For your valuation, the most important issue should be whether I have any skeletons in the closet or any character or moral defects that will affect the operation of Hartcourt. Here is the real test. I have never been convicted of any wrong doing in any court of laws and I have never declared bankruptcy. Yes, during the last 30 years, I had 4 parking tickets. Yes, I had 3 late payments on my bills. Yes, one guy called me an arrogant son of a bitch. Yes, I flunk my piano test. Yes, the IRS audited my tax returns 3 times (and gave me a clean bill of health all 3 times) and so on.  

Since we are talking about my personal character, I would like to share a few stories. Four months ago, I was negotiating with this Executive VP of a major Internet corporation. He proposed that I and his company should form another private company, he would fund us $50 Million and I should arrange to take all these Chinese contracts to the new company, which would have been easy. "What about the Hartcourt shareholders?" I asked. "Why should it be your concern? With us, you can do an IPO later, and you will be rich beyond your dreams", he replied. I walked out of the meeting, reminding him, "There is one problem: in my world, there are somethings called honesty, integrity and loyalty." You see, there are a thousand ways to make money, there is only one way to keep your soul. I am not and will never be a deserter.  

I live a simple life. I have everything I will ever need in this world: a small 2-bedroom condo, a library next door, free classes at the university, 2 hours of tennis every morning, 1 hour at the gym in the evening with a vegetarian dinner afterwards. When Hartcourt was my own private company, I traveled in Business Class. Now, it's your money, so I traveled in Economy. Unless I marry Julia Roberts, I really wouldn't know what to do with a million dollars. Money is never my motivation; but building an Internet empire is a game that I will play with everything I've got to win.  

And the empire is taking shape rapidly. Besides the Sinobull.com IPO and the Innostar joint venture, I will have a few pleasant surprises for you, before and after the New Year. These are my gifts to you. Please accept and share them with your loved ones, and count our blessings.  

One more thing about these letters. My lawyer keeps reminding me that I should not disclose any new news and should not praise the HRCT stock. Idid exactly that. However, he also advised that I should not sound optimistic because if the share price decreases, I might have a few lawsuits to answer to. It reminds me of the time when I was in the Army fighting the communists in Vietnam. When I charged up the hill to overtake the enemy's position, I did not stop to wonder if these Vietcong's would sue my ass if I failed. It was the do-or-die, black-and-white world. It is the same with Hartcourt now. There is no other option except the ultimate victory.  

I am sorry if this personal stuff makes you uneasy. I just want to set the record straight and prepare you for the coming bashings. The higher the share price, the dirtier the attacks from these insects.  

May I also take this opportunity to wish you and your family a Spiritual Christmas and a Great New Year, filled with health, happiness and Hartcourt shares. Sinobull too.  

I have given it my best and I am not through yet.  

Sincerely,  

Dr. Alan V. Phan  
Chairman & CEO

(4 Mio. $ Umsatz, 5 Mio. $ Verlust) beträgt derzeit ca. 2,34 Mrd. $, d.h. HRCT  
müßte auf ca. 119$ steigen. Besser noch wäre ein Vergleich mit CMGI  

7. Größe des Marktes, bis 2003 mehr online-User als in den USA  
China Internet-Nutzer 1998 2 Mio. User  
1999 7 Mio. User  
2000 140 Mio. User  
2007 200 Mio. User  

8. Beteiligungen: eSAT Technology (Sat.-Technologie für Datenübertragung ISP und IP-Phone), streamingAsia.com (Internet Broadcasting),  
die News, auf die alle warten:  
- drittgrößter US-Online-broker, eine Chinesische Bank, weitere Partner,  
- ingesamt in näherer Zukunft: 9 Acquisitionen, 4 strategische Partnerschaften, Verhandlungen mit 3 potentiellen Partner laufen derzeit, 2 Buy-outs, neuer Besetzung des Vorstandes ist beschlossen, die Namen werden in den nächsten 4 Wochen veröffentlicht  

9. HRCT baut eigene technische Kompetenz auf (20%-iger Beteiligung an eSat und Acquisition von StreamingAsia.com in HK)  
wichtig für die technologische und finanzielle Unabhängkeit  

10. Bermerkenswert ist die präzise strategische Ausrichtung. Hartcourt erobert den chinesischen IT-Markt auf den Gebieten, die den größten technologischen und mengenmäßigen Nachholbedarf haben und auf denen die kurzfristige Generierung von Gewinnen möglich ist.  

News:

08. Dezember 1999  

Hartcourt: 7.000% in einem Jahr! Die Aktien des Internet Venture Unternehmens Hartcourt (HRCT) können heute um weitere 45% zulegen. Grund für den erneuten Anstieg ist, dass die zu Hartcourt gehörende Sinobull.com, einen 50%igen Anteil an StreamingAsia.com gekauft hat. StreamingAsia.com ist der führende Hersteller von Internetsoftware in Hong Kong, und hat u.a. die Internet-Seiten des Finanzportals Sinobull.com entworfen. Mit dem erneuten Anstieg liegt Hartcourt seit Anfang des Jahres mit über 7.000% im Plus. Das Unternhemen hat damit bereits einen Börsenwert von rund 313 Millionen Dollar