The Jailhouse

[FrankNG]

Correct Matt. Phan himself confirmed in his shareholder letter that he got his PHD from Sussex School of Technology. While we are at it maybe you can tell me what this means?

"has completed the acquisition of the ongoing economic proceeds of Kangrun Jia Yuan Technology Ltd."


Hartcourt Subsidiary AI-Asia Completes Acquisition of Kangrun


The Hartcourt Companies, Inc. (BULLETIN BOARD: HRCT) , www.hartcourt.com , announced today that AI-Asia, Ltd. (HK) www.ai-asia.com , its subsidiary, has completed the acquisition of the ongoing economic proceeds of Kangrun Jia Yuan Technology Ltd. ( www.kangrun.com ). Kangrun provides systems integration, networking solutions, modular networking products, computer systems and storage devices to corporate enterprises in China. Two major strategic partnerships of Kangrun are IBM-China ( www.ibm.com ) and Ortronics ( www.ortronics.com ).

Kangrun Technology Ltd., and Control Technology Ltd. comprise the two main components of Hartcourt''s operating unit AI-Asia, Inc. In 2001, Kangrun''s audited sales revenue was $60 Million RMB / $7.4 Million US and Control Technology had audited revenues of $24.6 million RMB / $3 million US with combined net profit of 1.6 million RMB / $195,000 US. The audits were completed by Jimmy Cheung & CO Certified Public Accountants of HONG KONG, Kangrun is one of the top IBM distributors (5 star) in China for PC, server, laptop, storage devices and solutions for corporate customers. They are the general sales agent for Northern China for Ortronics. Their clients include; Tsinghua University, Beijing University, China Telecom, SK Corp, People''s Daily, Tom.com, and the Chang Sheng Fund.

"The Kangrun Technology acquisition completes the initial steps of AI-Asia''s strategy to combine the strengths of Kangrun, Control Technologies and LogicSpace to form the core of Hartcourt''s Information Technology operations" said Dr. Wallace Ching, Hartcourt''s CEO. "Their extensive technology base, blue chip partners and clients, extensive sales and distribution networks and strong financial position combine to make AI-Asia an integral player in China''s rapidly emerging IT landscape. Our next step is to take AI-Asia public, which we believe will be completed in Q3 2002."