Hartcourt Companies (fka HRCT)

[n-tres-ted]

Dr. Ching acknowledged after the Los Angeles meeting that Dr. Phan had stated spinoff company shares would be distributed to HRCT shareholders. However, he said the HRCT board must consider what is best for the company business plan at present. That is why they have determined (for the present) that the spinoff shares will not be paid out as stock dividends. A shareholder at the meeting stated very directly (and politely) that he had bought shares on the basis of his belief that the dividends would be paid, very much the same as your statement. But that is where it stands, as I understand it. JMO