Digital China Applies for Listing of Taiwan Depositary Receipts

HONG KONG, Oct. 4 /PRNewswire-Asia/ -- Digital China Holdings Limited ("Digital China" or "the Group"; stock code: 00861.HK), the largest integrated IT services provider in the Greater China area, today announces that the Group made an application on 4 October 2010 for the issue of Taiwan depositary receipts ("TDR"). The Company expects the issue to involve not more than 140,000,000 units of TDR. Each unit of TDR will comprise 0.5 shares of the Company, so no more than 70,000,000 new ordinary shares will be issued by the Company, representing 6.86% of the shares in issue. Another 120,000,000 units of TDR will be offered with ordinary shares underlying, comprising 60,000,000 ordinary shares, representing 5.88% of the shares in issue. The TDRs of the largest integrated IT services provider in Greater China will be available for trading on the Taiwan Stock Exchange.

The Directors are of the view that compared with the cost of other means of fund raising exercises; TDR Issue will be the most appropriate method of raising extra funds for the Group's future business development. And the Directors believe that the TDR is a good way of broadening the shareholder base, promoting the Group's corporate image internationally, enhancing its competitiveness as a whole.

Digital China is the largest integrated IT services provider in Greater China area, and was listed on the main board of The Stock Exchange of Hong Kong Limited on 1 June 2001. It has 19 regional centers in the major cities of Mainland China, Hong Kong and Macau, providing industry clients, large enterprises and consumers with comprehensive IT products and services, related to IT planning and consultation, industry application and enterprise solution design and implementation, IT system outsourcing, system integration, maintenance, IT professional services and consumer electronics etc. The Company has strong client network and partnership resources in the Greater China area, and has established strategic partnership with over 100 leading global IT manufacturers. The Company has maintained a leading position in various market segments. In particular, the Company ranks among top players in IT volume distribution, value-added distribution and system integration service markets in Mainland China, and also maintain the leading position in government sector, financial industry and telecom industry respectively in the field of software services.

In the 10 years since its establishment, Digital China has seen its profitability expand considerably. It is attributable to huge IT demand in the Mainland China domestic market, excellent risk management skill on the part of the Company, and a successful strategic transformation towards IT services. The Company successfully weathered the impact of the financial tsunami and registered excellent results both in operating performance and stock price. Its share price soared from a low of HK$1.92 in 2008 to a record high of HK$14.38 in March 2010. In September 2009, the Company made its first equity issue since going public nearly 10 years ago, and received an enthusiastic response from the capital market. In Financial Year 2009/10, Digital China achieved operating income of HK$50,178,000,000, representing an increase of 18.55% from the previous financial year. Its net profit amounted to HK$824,000,000, representing an increase 28.57% from the previous financial year. In 2009 and 2010, the Company was selected by Forbes Asia as one of the "Forbes's Asia Fab 50 Companies" for 2 years in a row.

In 2010, Digital China launched the "Sm@rt City" strategy, which will provide city authorities, enterprises and individual citizens with a wide range of IT products, services and information support infrastructure based on their various needs during the process of IT development for respective cities. It aims at building up a series of IT related operations with regional features in cities. The Company's management is confident of this initiative given the robust urbanization process in China, strong support from government in digital urban planning, as well as the Company's rich talent pool and experience over many years in full-range IT services.

About Digital China

Digital China Holdings Limited ("Digital China" or the "Group"; Stock Code: 00861.HK) is the largest integrated IT services provider in the Greater China area. Digital China has regional centers in 19 major cities nationwide with 9,400 employees. The Group provides customers with comprehensive IT products and services, driving technological innovations for work and life and enhancing the digitalization process in China with four core businesses: IT Services, Enterprise Systems, IT Products Distribution and Supply Chain Services. The Group has maintained its No.1 position in IT product distribution while it has increasingly focused on expanding into IT services. Digital China is one of the top 5 IT services providers across various sectors in China including telecommunications, finance and government, providing self- developed and proprietary products that are customised for specific industry needs. For additional information about Digital China, please visit the Company's website at http://www.digitalchina.com.hk.

    For investor and media inquiries:

     Wycee Liu
     Digital China Holdings Limited
     Tel:   +852-3416-8089
     Email: [email protected]

     Judie Zhu
     Digital China Holdings Limited
     Tel:   +852-3416-8090
     Email: [email protected]

     Lily Lai
     Digital China Holdings Limited
     Tel:   +852-3416-8133
     Email: [email protected]

     Henry Chik
     PRChina
     Tel:   +852-2522-1368
     Email: [email protected]

     Eric Song
     PRChina
     Tel:   +852-2522-1838
     Email: [email protected]

     Ada Tsang
     PRChina
     Tel:   +852-2522-2823
     Email: [email protected]

SOURCE Digital China Holdings Limited

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