China Broadband Corp. Signs Memorandum of Understanding To Enable Cable Internet Access in Beijing, People's Republic of China.

Business Editors

CALGARY, Alberta--(BUSINESS WIRE)--June 19, 2001

China Broadband Corp. (NASDAQ OTC/BB: CBBD) announced today that its operational subsidiary, Big Sky Network Canada Ltd., has signed a Memorandum of Understanding with Beijing Gehua Cable TV Networks Co., Ltd. ("Beijing Gehua") to enable two-way Internet access and value added services over the cable television network in Beijing, People's Republic of China.

Beijing Gehua is the municipal network company with the exclusive mandate to provide these services over the cable television network in Beijing to approximately three million subscribers. Under this agreement, Beijing Gehua will initially contribute a portion of its network, covering 10,000 cable television subscribers, while Big Sky Network, as the Internet technology partner, will provide the equipment, technology, capital, and management to enable Internet access. Both parties have agreed to launch such services expeditiously, and based on the results of this initial phase, expand this cooperation to encompass the Beijing network.

"We believe we were selected by Beijing Gehua as its Internet technology partner because of our successful launch of reliable, low-cost, high-speed, cable Internet access in other cities in China," stated Mr. Matthew Heysel, Chairman and Chief Executive Officer of China Broadband. "This historic agreement represents an unprecedented opportunity for us to enable Internet services in Beijing, the political center and showcase city of China. We plan to launch service by the fourth quarter of this year, once final contract negotiations and all government approvals have been obtained."

About China Broadband

China Broadband is a leading broadband Internet enabler 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 Province, Changsa, Hunan Province, and Shanghai.

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.