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CXTI - China Expert Technology Records Growth of 4.2% in Revenue and 22.2% in Net Income for Third Quarter 2004 Compared to Second Quarter 2004
Tuesday November 16, 7:05 am ET


HONG KONG--(BUSINESS WIRE)--Nov. 16, 2004--China Expert Technology, Inc. (OTCBB:CXTI - News) today reported results for the third quarter ended Sept. 30, 2004.
Revenue for the third quarter 2004 increased to USD$7.4 million compared to USD$7.1 million in the second quarter of 2004, reflecting an increase of 4.2 percent. Net income for the third quarter 2004 increased to USD$2.2 million, or US$0.09 per diluted share, compared to net income of USD$1.8 million, or USD$0.076 per diluted share, in the second quarter of 2004, reflecting an increase of 22.2 percent.

Kung Sze Chau, chief executive officer of China Expert Technology, stated, "The Chinese government has made building large-scale networks a priority. To capture a portion of this market opportunity, we formed China Expert Technology. To date, we have secured three major e-government implementation projects in Fijian province. During the third quarter, we met additional installation milestones and recorded another quarter of sequential growth with revenue of USD$7.4 million. Looking forward, our goal is to acquire the necessary resources to drive our business model and extend our practice to more provinces."

E-Government Background and Project Summaries

The China State Council's Development and Research Center predicts that China's e-government systems market will reach approximately US$6.7 billion by 2004.
In 2001, the office of the State Council laid out a 5-year Plan for building e-governments throughout China.
In 2003, the Central Government reinforced these directives with policies promoting e-government.
China Expert Technology has three major large-scale network infrastructure construction projects for governments in Fujian province and summaries follow.
In Jinjiang, in April 2003 CXTI began planning, designing and constructing an e-government with a USD$22 million contract and a December 2004 completion date.
In Nan'an, in May 2003, CXTI started a similar project with a smaller scope by signing a USD$14.5 million contract and a December 2005 completion date.
In Dehua, in March 2004 CXTI launched its third project with a USD$18 million contract and an August 2006 completion date.
About China Expert Technology, Inc.

Headquartered in Hong Kong and started in 1998, China Expert Technology, Inc. (OTC Bulletin Board: CXTI - News), provides information technology network and infrastructure consulting services to government agencies and corporations that are involved with creating electronic governments, also known as e-governments. CXTI provides large-scale network infrastructure construction with solutions for enterprise information platform construction, public LAN construction, software development, website planning and development, workflow management and computer hosting services. China Expert Technology also offers consulting services to communities and municipal governments in China. In addition, China Expert Technology is the only foreign owned corporation with the authority in China CXTI is as business appraisal services for information technology companies in the China. For more information, please visit http://tech.chinaexpertnet.com.