China Broadband Corp. Enters Into Letter of Intent To Enable Cable Internet Access in Shanghai, People's Republic of China.

Business Editors

CALGARY, Alberta--(BUSINESS WIRE)--June 12, 2001

China Broadband Corp. (NASDAQ OTC/BB: CBBD) announced today that its operational subsidiary, Big Sky Network Canada Ltd., has entered into a Letter of Intent with Minhang Broadcasting and Television Centre to enable reliable, high speed, two-way Internet access over the hybrid fibre co-axial (HFC) cable television infrastructure in the Minhang Economic and Technology Development Zone in Shanghai.

This Zone is located south west of the city centre, and encompasses over five sq. km. Foreign investment in this Zone topped US$1.8 billion in 2000, and includes such multi-national companies as Bristol-Myers, Squibb, Johnson & Johnson, Pepsi Co., Mitsubishi, Braun, Singer, and Xerox.

"We have successfully deployed high speed Internet access in the south and west of China, and look forward to expanding our business to Shanghai; China's leading financial and commercial centre," stated Mr. Matthew Heysel, Chairman and Chief Executive Officer of China Broadband Corp. "We plan to deploy service in the Minhang zone in Shanghai in the fourth quarter of this year, once final contract negotiations have been concluded, and all requisite government approvals have been obtained."

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 5,000 in the past year. This is 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, Sichuan, and Changsa, 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 negotiating joint ventures with up to 18 pre-screened additional cities throughout China, representing a potential market of 9 million cable TV subscribers.

For further information please contact:

Matthew Heysel
Chief Executive Officer            Kurt Johnson
China Broadband Corporation        Armor Capital Partners
Tel: [phone]                  Tel: [phone]
Fax: [phone]                  Fax: [phone]
[e-mail]              [e-mail]

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.

CHINA BROADBAND CORP.

Calgary, Alberta, Canada

Beijing, People's Republic of China

WWW.CHINABROADBAND.COM