CBCom Completes First Phase of Consolidation.

Business Editors

ENCINO, Calif. & BEIJING--(BUSINESS WIRE)--Dec. 20, 2001

CBCom Inc. (OTCBB:CBCI) announces the completion of the first phase of merger and consolidation of Internet Service Providers (ISPs) that have been acquired.

After CBCom established Chinet as its ISP strategic partner in China, and then acquiring two additional ISPs and a networking solutions provider, it began the process of merging and consolidating the newly acquired companies. The first phase of this consolidation is now complete.

As a result of this consolidation, Chinet administers its entire China operations from its main office in Beijing, having relocated to that office all physical assets (except for collocated networking equipment), human resources/personnel, sales and marketing, customer service, and office and administration staff. Toll-free 800 number service has been installed as well, and Chinet now provides centralized customer service for all operations.

Chinet has begun a full-scale marketing campaign to promote brand recognition of its 95777 access number (a special nationwide number that users may use to access the Internet at a reduced rate). The consolidated marketing campaign removed confusing and conflicting sales promotions previously offered by competing ISPs, thus providing customers a simplified and clear set of choices. The 95777.com website has been established where all consolidated ISP websites are now directed. Here customers can receive the same consistent level of service, regardless of which company they were previously with.

This phase of consolidation has greatly reduced staffing requirements through elimination of redundancies. Before consolidation, these individual companies required a combined staff of 140 persons in order to operate efficiently. The consolidated company requires only 80 employees -- a reduction of 43% of the original workforce -- and despite the reduction provides service to all of its 500,000 merged customers with service that is even better and more efficient.

An integral part of the consolidation plan was to establish a means for operating and expanding nationwide while keeping additional staffing requirements at a minimum. The goal has been achieved in Shanghai, where nearly one fourth of its customers are located, are serviced by a small satellite office of only six employees and a division manager.

The second phase of consolidation is the merger of the physical networks, which is well under way. The first step was the successful merger of the three different email servers in three different IT centers into a single server system located in the main IT center. This centralization reduces maintenance requirements as well as simplifying the individual customer configurations.

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.