Hartcourt Companies (fka HRCT)

[Tin-Berrygood]

Q1 could be fun...jmo

Aloha



Challenger recorded combined revenue of RMB550 Million (US$66.7 Million) in 2003. In the
first quarter of 2004, Challenger's all five divisions posted strong growth compare to the first
quarter of 2003. It further expanded its business in government and corporate sectors by winning
key contracts to supply to government bodies including: China Banking Regulatory Commission,
China Insurance Regulatory Commission, China Customs, and China Railway Ministry; and to
corporate customers including: Siemens, China Telecom, China Tobacco and Sony, etc. Its
notebook division posted over 50% quarter over quarter growth compare to 2003.