Asian Star Sells Project in China for $1.59 Million US.

Business Editors

HONG KONG--(BUSINESS WIRE)--July 3, 2001

Asian Star Development, Inc. (OTCBB:ASTV) with its principal offices in Hong Kong, has concluded an agreement with the "Shilong Town House and Properties Corporation" ("STHPC"), to sell ASTV's "Shilong Water World" in exchange for approximately $1.59 million US.

Stephen Chow, President of ASTV, stated: "As we move our Company into other fast growing industries, our strategy is to scale down our participation in real estate development projects. This will allow our Company to better deploy resources into more-lucrative projects and high-growth markets."

ASTV's major business activities were previously focused on real estate development in Asia and China. Recently, the Company has begun negotiations of merger with various corporations within China. As China prepares for entry into the World Trade Organization (WTO), ASTV will be well positioned to take advantage of the immense Chinese market of 1.2 billion consumers.

The above statements in regard to Asian Star Development, Inc. which are not purely historical are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including Asian Star Development, Inc.'s beliefs, expectations, hopes or intentions regarding the future. All forward-looking statements are made as of the date hereof and are based on information available to the parties as of such date. It is important to note that actual outcome and the actual results could differ materially from those in such forward-looking statements. Factors that could cause actual results to differ materially include risks and uncertainties such as technological, legislative, corporate and marketplace changes.