HARTCOURT - Germany/Europe

[McCorry]

Email from Hartcourt:
Received today 4 Sept 03
Dear Mr. Peterson:
As of 8/31/03, Hartcourt has 788 shareholders of record who are registered with Our Transfer
Agent. These holders include Cede & Co, a deposit trust for all brokerages, who hold shares
under street names. On 7/15/03, Cede, through ADP, informed us that they were holding
shares for 11,842 shareholders so we could send the proxies out to these NOBO shares.
Therefore, we have approximately 12,500 shareholders. This amount has not changed much
during past year.
On future acquisitions, we shall release the news publicly whenever a definitive agreement is
signed. We cannot comment on the timing. However, our CEO, Mr. David Chen, made clear
that our revenue target by 2004 is $500 Million.
Thank you for your support,
Hartcourt