Elephant Talk Communications, Inc. (ETAK)

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Hartcourt Capital to Obtain Equity Listing for CC&E Communications
April 17, 2002 03:00:00 AM ET

Hartcourt Subsidiary Partners With Shanghai Reach-Bridge Investment to Take CC&E to International Capital Markets

LOS ANGELES, April 17 /PRNewswire-FirstCall/ -- The Hartcourt Companies, Inc. (OTC Bulletin Board: HRCT; Frankfurt: 900009), www.hartcourt.com , announced today that its subsidiary, Hartcourt Capital Inc., together with Shanghai Reach-Bridge Investment Consulting Company Ltd (SRBIC), have been appointed as joint financial advisors by CC&E Communications Co. Ltd. to assist the company in going public on international stock markets. Hartcourt Capital is providing services on a fee and equity basis.

CC&E Communications Co. Ltd is a full service-advertising agency and content production house based in Guangzhou. Its core businesses include television content production, a traditional advertising agency, and broad spectrum media purchasing. The Company syndicates and sells the broadcasting right of its programs to a network of 350 Television stations throughout China. CC&E approached US$10m in revenue and US$1m in net profit for 2001 according to its unaudited financial statements.

"The Chinese media sector is currently undergoing an explosive growth stage and CC&E is very fortunate to be a well-positioned player within the sector," said Mr. Sandy Ng, President and Executive Director of CC&E. "We are very pleased to retain Hartcourt Capital and SRBIC's services, and we look forward to taking CC&E to the public markets. This will allow our company access to the international capital markets to acquire additional funding to finance our new program production, the planned expansion of our program distribution network, and facilitate CC&E's transition into a full service multi-media provider. It will also put the company in a favorable position as we seek out suitable peer companies for potential acquisitions in order to meet our planned growth and market penetration targets."

Dickson Leung, CEO of SRBIC, says, "We are fortunate to have been chosen to partner with Hartcourt Capital in representing and advising CC&E in achieving their goals for an international listing. I look forward to working with Dr. Ching and his entire management team as we create a new corporate structure for CC&E and bring them to the public markets."

Close to one billion people in China are exposed to television programming and approximately 80 million have cable access, both these markets are the largest in the world. China has over 500 television stations and 3600 channels, the demand for production and programming content are enormous. In addition, advertising spending topped $9 billion in 2000 and is growing 12% yearly.

"The timing is right for CC&E to tap the international capital markets," states Dr. Wallace Ching, CEO of Hartcourt Capital Inc. "Post-WTO, China is gradually opening up its media industry for foreign participation and the media sector presents tremendous potential as a high growth area that rewards first mover advantage. We are pleased to be chosen by CC&E Communications to represent and assist them in acquiring a listing on the equity markets and to accomplish their goals for expansion in the Greater China media industry."

About Hartcourt

The Hartcourt Companies is a holding and development enterprise that has built a broad network of Internet, media, and telecommunication companies in Greater China. In partnership with leading Chinese entrepreneurs and government-sponsored entities, Hartcourt is developing and investing in emerging technologies while building an integrated commercial framework for its subsidiaries and their partners. Hartcourt's operative business strategy is designed to facilitate a series of venture divestitures via IPO or public merger to fully realize the value of these assets for its investors. Detailed information on Hartcourt can be obtained via the company's Web site: www.hartcourt.com .

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.

For more information ... please contact:

Larry Kristof
Vice President
Lexington Enterprises Ltd.
Suite 204, 910 Richards Street
Vancouver, BC V6B 3C1
E: [e-mail]
T: 604.484.8286
F: 604.484.8287
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