Hartcourt Companies (fka HRCT)

[n-tres-ted]

Dr. Ching said at the Los Angeles meeting that the company will not be doing a reverse stock split. In addition, he said the board of directors of HRCT are presently of the view that distribution of shares of spin-off companies as dividends to the shareholders of HRCT would not be beneficial to the business plan of HRCT and would have adverse tax consequences to the shareholders; therefore, present view is that no such distribution of shares as dividends will be done, although the issue will be reevaluated from time to time. My interpretation: I don't think it is going to happen, and I think that is the correct business decision. JMO