The Jailhouse

[FrankNG]

Matt, how about this hoot. Alan Wolfson/CYBERAMERICA makes deal with Alan Phan for Worlds 3rd. largest ISP in China. LOL BTW Matt, guess who Hartcourts legal council was? LOL

"According to the legal opinion of its counsel, Hartcourt has a valid assignment from CyberAmerica Corp., the original signer of the purchase agreement with the Chinese party. The company intends to proceed with the purchase and will provide the financing as its only condition precedent to closing."


China Internet Provider Denies Takeover by Hartcourt of U.S.
Bloomberg News
Mar 24 1999 12:19AM ET

Shanghai, March 24 (Bloomberg) -- China Infohighway Communications Ltd., China's third largest Internet provider, denied it agreed
to sell a 90 percent stake in the company to Hartcourt Companies Inc. of the U.S. and said there are no plans to bring foreign
investors into the company.

``This is sheer nonsense,' said Lu Qun, an official in Infohighway's publicity department.

Foreign participation in the Chinese Internet market is currently banned.

Hartcourt issued a statement in Los Angeles yesterday citing President Alan Phan as saying it agreed to buy 90 percent of
Infohighway subject to conditions.

These include an independent valuation that would establish the worth of the Chinese company at more than $80 million, and
Hartcourt arranging $30 million in financing to fund Infohighway's expansion and the repayment of some of its debts.

Lu said Infohighway, part owned by the Chinese government, plans to reshuffle its shareholdings in the near future but foreign parties definitely won't be considered.

Infohighway has no port of its own, instead using facilities supplied by China Telecom, the state telecommunications group with a
virtual monopoly on the domestic market.

Last year Infohighway was embroiled in controversy when senior managers couldn't agree on development strategies. Its general
manager, Zhang Shuxing, resigned as a result.

Infohighway started in May 1995 as a private company but expanded with the entry of three government-backed firms as
shareholders. It has registered capital of 80 million yuan ($9.6 million).

China now has about 2.1 million Internet users, including Infohighway's 70,000 customers.

Computer Economics Inc., a U.S.-based research firm forecasts that China's user numbers will reach 37.3 million by 2005, putting
it in second place behind the U.S., which by then will have 126.6 million users. (Infohighway's web site: www.ihw.com.cn)
=================================================

(COMTEX) B: The Hartcourt Cos. Inc. Issues Statement
B: The Hartcourt Cos. Inc. Issues Statement

LOS ANGELES (March 24) BUSINESS WIRE -March 24, 1999--The Hartcourt Cos.
Inc. (OTC:HRCT) reported that in reference to the rebuttal of the
Chinese party in the Internet transaction, Hartcourt stated that it
stands by its statement in the news release of Tuesday, March 23.

According to the legal opinion of its counsel, Hartcourt has a valid
assignment from CyberAmerica Corp., the original signer of the purchase
agreement with the Chinese party. The company intends to proceed with
the purchase and will provide the financing as its only condition
precedent to closing.

Hartcourt's counsel is contacting the Chinese representatives for
further clarification of their position.

Certain statements in this news release only constitute
"forward-looking" statements within the meaning of Section 21E of the
Securities Exchange Act of 1934. Such forward-looking statements
involve risks, uncertainties and other factors that may cause the
actual results, performance or achievement expressed or implied by such
forward-looking statements to differ materially from the
forward-looking statements.

-0- tjm/la* la/la

CONTACT: The Hartcourt Cos. Inc., Los Angeles
Frederic Cohn, 310/788-2634

KEYWORD: CALIFORNIA

INDUSTRY KEYWORD: COMPUTERS/ELECTRONICS ENVIRONMENT ENMED COMED Today's
News On The Net - Business Wire's full file on the Internet

with Hyperlinks to your home page.
URL: http://www.businesswire.com

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