CBCom's Strategic Partner Purchases Far East Communications.

Business Editors & High-Tech Writers

ENCINO, Calif. & BEIJING--(BUSINESS WIRE)--Dec. 13, 2001

CBCom Inc. (OTCBB:CBCI) today announced that its strategic partner in the People's Republic of China (PRC), Beijing Chinet Information Technology Co. Ltd. (CHINET), has finalized the agreement to purchase Far East Communications Company, a networking and communications system integrator.

The terms of the purchase agreement signed on Dec. 10 stipulate that CHINET acquires a 90% interest in Far East Communications. CBCom Inc., through its relationship with CHINET, will derive 80% of the income. The purchase provides several valuable benefits that are immediately realized. Of key importance is that Far East Communications enjoys a favorable tax rate that is 50% percent lower than Chinet's current tax rate. As a result of the purchase, CHINET will also enjoy the same favorable tax status.

CBCom's CEO, Max Sun, welcomed the agreement, stating, "Far East Communications provides significant added value to Chinet. The preferential tax status will unquestionably help us reach profitability faster, and we can expect to benefit greatly from their technical experience as we integrate the networks of the other acquired ISPs."

In addition to the tax benefits mentioned above, CHINET will also acquire Far East Communications' holdings which include network and switching equipment, as well as a microwave system ready for deployment to cover the entire city of Beijing. CHINET will also benefit from extensive technical expertise in a variety of telecommunications areas including wide area network integration and IP telephone systems. Far East Communications has several long-term contracts for networking system installation, integration and maintenance, including large office building networking and communication.

About CBCom Inc.

CBCom Inc. is a development stage company positioning itself, through strategic partnerships and acquisitions, to become one of the largest non-state-owned Internet Service Providers (ISPs) in China's large and rapidly growing Internet market. To that end, CBCom has assembled a core management team experienced in start-up operations, financial management, marketing and the Chinese telecom market. By entering the market early, CBCom will enjoy an advantage in China's young and rapidly growing market for Internet services and content. For more information see www.cbcom.net.

Except for historical financial information that may be contained herein, the matters set forth in this release are forward-looking statements that are dependent on certain risks and uncertainties, including but not limited to such factors as market demand, pricing, and changes in worldwide economic conditions. This report should be read in conjunction with the Company's annual report on Form 10-K and its quarterly reports on Form 10-Q.