China Broadband Corp. Announces Strategic Agreement With Nortel Networks To Deploy Internet Solutions In China.

Business Editors

CALGARY, Alberta--(BUSINESS WIRE)--Feb. 14, 2001

China Broadband Corp. (OTCBB:CBBD)

China Broadband Corp. an Integrated Broadband Provider, has entered into a strategic agreement with Nortel Networks under which Nortel Networks will provide China Broadband with next generation Internet solutions.

Nortel will assign an account teams in North America and China to work closely with China Broadband to assist us in implementing our business plan, marketing programs, and with introductions to potential strategic relationships, and to participate with China Broadband in trade shows and special events in China. China Broadband will have the ability to purchase for cash at special pricing up to US$250,000,000 of 'state-of-the-art' equipment and services from Nortel Networks over the next five years.

"We are very pleased to formalize a strategic relationship with Nortel Networks, a leader in global Internet Solutions", commented Mr. Matthew Heysel, China Broadband's CEO & Chairman. "We believe that this relationship will enable China Broadband to expand its existing operations and to become a leading Broadband provider in China. As well, we believe that Nortel Networks single network Internet solution will enable China Broadband to continue to deploy high-speed Internet data services today, with the ability to migrate to value-added services as China continues to move towards membership in the World Trade Organization and future deregulation."

"China Broadband shares Nortel Networks vision of carrier-grade, multi-service, next-generation broadband networks based on Internet technology," said Mr. Richard Dugal, Regional Vice President, Emerging Service Providers, Nortel Networks. "Today's announcement further validates Nortel Networks leadership in the Local Internet marketplace as well as our ability to deliver a total end-to-end managed network."

About China Broadband

China Broadband is positioning itself to become the leading cable broadband provider in China. The Company was formed to provide Internet technology to enable reliable, low-cost, high-speed Internet access over the modern hybrid fibre-optic coaxial Cable Television architecture in China. The Company, through its operational subsidiary, Big Sky Network, forms cooperative joint ventures with municipal and provincial governments, which own entities with access to local cable television stations. These joint ventures provide Internet technology services to enable cable Internet access as government approvals are obtained.

There can be no assurance that China Broadband can raise sufficient capital to finance its anticipated growth or that a sufficient number of customers will subscribe to its services to allow China Broadband to purchase the maximum amount of equipment and services under the Nortel Networks agreement.

Note: The information contained in this press release contains "forward looking statements" within the meaning of the U.S. federal securities law. Such statements are based on the current expectations of the management of China Broadband Corp. only, and actual results may differ materially. Factors that may affect such results include, but are not limited to, China Broadband's ability to realize anticipated benefits from the strategy partnership with Nortel Networks, China Broadband's ability to increase its subscriber bases in Shekou and Chengdu, China Broadband's ability to enter into new joint ventures to expand its presence in China, China Broadband's ability to obtain additional capital to meet its on-going capital requirements and capital for expansion needs, potentially adverse regulatory environment and governmental regulations, technological or competitive developments that may render existing systems obsolete, uncertain demand for China Broadband's services or products, potential inability to timely develop and introduce new technologies, products and services, failure to receive on a timely basis necessary permits or other governmental approvals, and delays in installing equipment or providing services. These factors and many others could cause the actual results or performance to differ materially from management's expectations. For a more detailed discussion of risks and other factors related to China Broadband please refer to its 10-KSB and 10QSB reports filed with the U.S. Securities and Exchange Commission.