China Broadband Signs Memorandum of Understanding With Jitong Network Communications Co. to Provide Fixed Wireless Internet Service Throughout The People's Republic of China.

Business/High Tech Editors

CALGARY, Canada--(BUSINESS WIRE)--Oct. 18, 2001

China Broadband Corp. (OTCBB:CBBD) announced today that its operational subsidiary Big Sky Network Canada Ltd. has entered into a Memorandum of Understanding with Jitong Network Communications Co., a national telecommunications company, to provide fixed wireless Internet service throughout China.

Under this agreement, a fixed wireless solution available to China Broadband, will be tested using spectrum provided by Jitong. This state-of-the-art wireless technology can effectively deliver carrier-grade voice and data service at rates of 12Mbps within a single base station coverage radius of three to five miles and incorporates low cost self-provisioning end-user devices having self-directing internal antennae. Based on the results of this trial, Internet access and value-added services will be jointly deployed throughout China over Jitong's existing city-specific and countrywide spectra.

"China Broadband provides quality broadband Internet service over existing cable television networks and metropolitan area ether networks in China. We believe this fixed wireless initiative, in partnership with Jitong, will achieve the same level of quality as our current 'wired' deployments, while enabling more rapid customer acquisition from a nation-wide market," stated Mr. Matthew Heysel, Chairman and CEO. "In-country trials are anticipated to occur within the next 60 to 90 days. Based on favorable trial results, final contract negotiations, and the receipt of all requisite government approvals, we believe country-wide deployment will follow early next year, starting with major metropolitan areas."

About China Broadband

China Broadband is a leading broadband Internet provider in China. The Company, through its operational subsidiary Big Sky Network Canada Ltd., forms co-operative joint ventures with municipal network providers to enable affordable, reliable, high-speed Internet access. The Company launched its first deployment in Shenzhen over the hybrid-fibre cable television network; the first commercial launch of two-way commercial Internet access in China. The Company has also launched Internet access over the cable television network in Chengdu, Sichuan, and via a metropolitan area network in the Chengdu Hi-Tech Park. The Company has also executed agreements to enable Internet access in the cities of Deyang, Shanghai, Beijing, Chongqing, and throughout the provinces of Hunan and Fujian.

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.

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.