Elektromotive Group Limited

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    MOU On Investment In China

    BackApr 12, 2002

    The Board of Directors of Panpac Media.com Limited (the "Company") is pleased to announce that the Company has today entered into a non-binding Memorandum of Understanding ("MOU") with Singapore-based Diphthongs Pte Ltd ("Diphthongs") to form a new joint venture company ("JVCo") in Shanghai, the People's Republic of China ("PRC") to undertake and conduct businesses in PRC, including businesses relating to publishing, event management and education.

    Under the terms of the MOU, Diphthongs will inject its existing education business into the JVCo in exchange for a 48.6% stake in the JVCo to be formed. The Company will own the remaining 51.4% stake.

    Diphthongs currently operates a 3-year old private college called PCEC-CS College in Shanghai in collaboration with the Pudong Continuing Education Centre for Shanghai Higher Education.

    PCEC-CS College offers external diploma and degree programs in partnership with overseas universities. It currently has a student population of about 150 students. By offering a wider range of education programs through more strategic tie-ups with overseas institutions of higher learning, PCEC-CS expects to double its student population to about 300 students by year-end.

    Under the terms of the MOU, the Company shall, inter alia, license its publishing products to the JVCo and manage the publishing business of the JVCo.

    The proposed investment in JVCo, and the concurrent acquisition of PCEC-CS College are in line with the Company's planned expansion into the PRC market. The tie-up with Diphthongs will allow the Company to tap into the business network that Diphthongs has established in the PRC over the years.

    The subject matter of this announcement is not expected to have a material effect on the earnings per share or the net tangible assets per share of the Company for the financial year ending 31 December 2002.

    No director or substantial shareholder of the Company has any interest, direct or indirect, in the subject matter of this announcement.