China Broadband Corp. Debt Free After Canceling Promissory Note.

Business Editors

CALGARY, Alberta--(BUSINESS WIRE)--July 27 2001

China Broadband Corp. (NASDAQ OTC/BB: CBBD) announced today that it has completed the transaction to acquire for cancellation its US$1.7 million promissory note originally issued on September 29, 2000 to SoftNet Inc. In exchange for the note, the Company issued a two-year warrant to acquire 500,000 common shares of the company at a price of US$1.00 per share, and paid accrued interest of approximately $113,000.

"Our balance sheet is significantly stronger as a result of this transaction," stated Mr. Tom Milne, the Company's Chief Financial Officer.

"This transaction frees up capital which will enable us to continue our aggressive strategy in pursuing Internet broadband deployment opportunities in China, where our footprint has grown significantly over the last year," stated Mr. Matthew Heysel, Chairman and Chief Executive Officer of China Broadband Corp.

About China Broadband

China Broadband is a leading broadband Internet provider in China. China Broadband, through its operational subsidiary Big Sky Network Canada Ltd., forms cooperative joint ventures with municipal network providers to enable high-speed, low-cost, reliable Internet access, principally over the existing hybrid fibre coaxial (HFC) cable TV infrastructure. The Company launched its first deployment on June 30, 2000 in Shekou, Shenzhen, and has grown its subscriber base to over 6,000 in the past year. This was the first commercial launch of a two-way cable broadband Internet access in China. The Company has also launched its second deployment in Chengdu, Sichuan, and has signed contracts to enable cable Internet access in Deyang, Shanghai, Beijing, Chongqing, and throughout Hunan Province.

Under these joint ventures, the Chinese partner contributes the exclusive access to the existing network, while the Company contributes the required capital, management, and Internet technology to enable Internet access once all government approvals are received.

The Company is currently discussing and negotiating joint ventures with several pre-screened additional cities throughout China.

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.