Hartcourt Companies (fka HRCT)

[Tin-Berrygood]

Dear Friend:

Attached please find the list of 103 deserving loyalists of the Hartcourt army and the respective share allotment as promised. In the next few days, each of you on the list will receive a Share Purchase Agreement to be signed and executed.

We have made a few changes in the selection process. Instead of 48 loyalists, we have decided to select 103 because we do not want to leave out any deserving person. Furthermore, we plan to draw the names of 10 winners of 20,000-share prize each at the Annual Shareholder Meeting in Las Vegas, instead of 2 persons with 100,000 shares each. A total of 89 other shareholders are eligible for the lottery.

We have done our best to be fair and equitable in the share calculation, down to the smallest fraction. The biggest weight in the formula used was the loss suffered by the loyalist (42.75%). Next were the length of shareholding (17.45%) and the public and private support of Hartcourt (16.55%). Other smaller matters accounted for the remaining 23.25%.

The group of 103 loyalists represents the best of human diversity and nobility. The documents I received on personal background and social contributions painted a beautiful picture of compassion, patience, faith and peace. I am proud to be a member of this club. An Email sent by one of yours summed it up nicely, "Many people will walk in and out of your life. But only true friends will leave footprints in your heart."

Best
Alan Phan