Hartcourt Companies (fka HRCT)

[traderbob]

Press Release 11/10/2008 Periodical Highlight Summary

Periodical Highlight Summary



Dear Fellow Shareholders:



We would like to update you on our progress in the past several months since June 1, 2008 and our expectations in the near future.



On June 13, 2008, Hartcourt signed a definitive agreement to purchase 60 % of outstanding equity interests of Beijing Yanyuan Rapido Education Company (¡°Beijing Yanyuan¡±). Under the terms of the definitive agreement executed between Beijing Yanyuan and Hartcourt, Beijing Yanyuan committed that its net profit would exceed RMB6 million (US$827,000) for the year 2008, RMB10 million (US$1.379 million) for the year 2009, and RMB14 million (US$1.931 million) for the year 2010.



On July 23, 2008, Hartcourt closed the acquisition of Beijing Yanyuan, which was a subsidiary of Hartcourt from July 24, 2008. We completed the first step in restructuring Hartcourt to enter into the education/training market in China.



On September 2, 2008, Hartcourt released a practical business plan, with the strategic vision to be a for profit leading provider of education and training services in The People's Republic of China.



On October 18, 2008, Hartcourt signed a definitive agreement to purchase 60% of the outstanding equity interests of China E & I Development Co. Ltd. (China Arts and Science Academy). China Arts and Science Academy is a leading provider of online education in China focusing on vocational education. Under the terms of the definitive agreement executed between China Arts and Science Academy and Hartcourt, China Arts and Science Academy committed that its net profit would exceed RMB5 million (US$735,294) for the first year in which its results are consolidated with Hartcourt¡¯s, RMB7.5 million (US$1.103 million) for the second year in which its results are consolidated with Hartcourt¡¯s, and RMB10 million (US$1.471 million) for the third year in which its results are consolidated with Hartcourt¡¯s.



On October 31, 2008, Hartcourt closed the acquisition of China Arts and Science Academy, which was a subsidiary of Hartcourt from November 1, 2008. We completed another important step in restructuring Hartcourt to become a leading provider of educational services in China. Vocational education services are one of the cornerstones of Hartcourt¡¯s educational service strategy. We see this successful acquisition as a further important step in implementing our business plan and toward Hartcourt becoming a leading provider of vocational education.



On October 15, 2008, Hartcourt filed 10Q for the first quarter of fiscal 2009 with revenues, which represented Hartcourt thoroughly turned around from a shell company without revenues.

Revenues were US $215,967 for the three months ended August 31, 2008 compared to zero for the same period in 2007. The increased revenue was primarily due to revenue generated by Beijing Yanyuan, which was consolidated from July 24 2008, with its operation results of 39 days consolidated into the first quarterly report. We successfully executed on our expansion plan in the first quarter of fiscal 2009.



As a result, the financial report of Q1 marked a new beginning of an era with revenue for Hartcourt. We are delighted with the financial performance in our all-important first quarter of this fiscal year.



The revenues of the whole quarter (3 months) for Beijing yanyuan, and revenues of 1 month for China Arts and Science Academy will be consolidated in the second Quarter we believe the relevant financial report of Q2 will be improved substantially.



Hartcourt's first quarter performance marks the continuation of our ability to deliver solid earnings growth in the future. We look forward to expand further in next quarters to build a strong foundation for the coming years. At the same time, we shall set a higher standard of corporate governance and transparency.



The positive trend should continue in next quarters as new acquisitions are coming on stream. This year will be a crucial year to achieve the goal of our business strategy. We are pleased for our past success, but we believe the future of Hartcourt will be brighter.



The finished two successful acquisitions were parts of our long-term strategy to step into and gain a solid footing in China education field, with the foundation built, the further acquisitions will speed up.



Building upon our accomplishments in the past several months, we are eager to demonstrate additional progress in the near future. We expect to acquire more educational subsidiaries with substantial profits in the coming years.



With the major hindrance behind us and aggressive restructuring and acquisitions under way, we believe Hartcourt can lead the way in delivering exceptional growth, value and opportunity to our shareholders in Fiscal 2009 and beyond.




Thanks for your continued support to Hartcourt. We look forward to updating you on our progress throughout the whole year.



Best Regards

Victor Zhou

Chief Executive Officer



About Hartcourt

Hartcourt Company Inc. is an educational services provider in China focusing on professional education. Hartcourt offers a wide range of educational programs, services and products, primary and secondary school education, development and distribution of educational content, software and other technology, and online education. Hartcourt¡¯s achievements and operations can be found on its web site: http://www.hartcourt.com



Forward-looking Statements



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.



Contact:

Ms Mary Qi, Tel: + 86 21 51113716 Fax: + 86 21 51113719 Email: [e-mail]










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