HARTCOURT - Germany/Europe

[asia]

Hartcourt Today Announced Changes to Its Management Team
via COMTEX

May 29, 2006

SHANGHAI, CHINA, May 29, 2006 (MARKET WIRE via COMTEX News Network) --

The Hartcourt Companies, Inc. (OTCBB: HRCT) (Frankfurt: 900009) today announced Carrie Hartwick, CEO and President of Hartcourt, has completed her two-year term and decided to pursuit other business interests. She has resigned as the Director of the Company and will leave Hartcourt on May 31st, 2006. The Board of Directors has accepted Carrie's resignation and wishes her success in her future business pursuits, and thanks her for her efforts on behalf of Hartcourt.

Victor Zhou, one of the Company's Directors, will assume the position of acting Chief Executive Officer until a permanent successor is named, effective on June 1, 2006. Concurrently, the Board has also established an independent management search committee to evaluate potential candidates for executive management positions of the Company. Chaired by Board Chairperson Billy Wang, the search committee also includes director Wilson Lee. Mr. Zhou has been the President of Fixed Assets Investment of Huatai Securities Inc, one of the top ten securities firms in China since 1997. Before Huatai, Mr. Zhou was the General Manager with Jiangsu Securities Inc. from 1993 to 1997. Mr. Zhou has extensive experiences in securities trading, private equity investment and asset management. Mr. Zhou received his BA in economics from Hunan University and EMBA from China Europe International Business School.

In addition, the Company's Board of Directors has appointed Mr. Yungeng Hu as the Company's President and Chief Financial Officer, effective on June 1, 2006. Mr. Hu was a senior banker with several financial institutions. Right before Hartcourt, Dr. Hu served as a Managing Director of Investment Banking at CLSA, bringing his substantial experience to the firm's China operations, in the areas of ECM and M&A. Prior to CLSA, Mr. Hu was the General Manager of Hangzhou Hyatt Hotel for two years. His responsibility included designing and executing the turnaround strategy and rescued the company out of the distressing situation. Dr. Hu used to work for Chase Manhattan Bank in New York. His familiarity in equity linked fixed income instrument valuation helped to restructure Chase's NPL and other international lending deals. Mr. Hu also worked for Ministry of Commerce of PRC and Bank of Finland. Mr. Hu holds an MBA from Helsinki School of Economics and a Ph.D from New York University.

About Hartcourt

Hartcourt's achievements and operations can be found on its web site: www.hartcourt.com

Forward-looking statements

The statements made in this press release, which are not historical facts, contain certain forward-looking statements concerning potential developments affecting the business, prospects, financial condition and other aspects of the company to which this release pertains. The actual results of the specific items described in this release, and the company's operations generally, may differ materially from what is projected in such forward-looking statements. Although such statements are based upon the best judgments of management of the company as of the date of this release, significant deviations in magnitude, timing and other factors may result from business risks and uncertainties including, without limitation, the company's dependence on third parties, general market and economic conditions, technical factors, the availability of outside capital, receipt of revenues and other factors, many of which are beyond the control of the company. The company disclaims any obligation to update information contained in any forward-looking statement.

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SOURCE: The Hartcourt Companies, Inc.


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