Hartcourt Companies (fka HRCT)

[Franz Beckenbauer II]

Dear Mr. XXXXXX ,

Thank you for your email to us. The merger with Hartcourt and Sino-Canada is in progress. As you know, Hartcourt filed a preliminary proxy statement with SEC as of November 12. We are now working with Hartcourt on preparing for responding to SEC's first round comments and plan to file the amendment soon. Concerning when we can finalize the transaction, it depends on SEC's comments.

Thank you very much for your attention which we appreciate a lot! We sincerely wish you and your family a prosperous new year!

Best wishes,

Jie Zhang
Assistant to Ross Yuan