China Continental Announces Strategy Review, Acquisition of Oil & Gas Assets and New Management, Together with Proposals for a Name Change, Consolidation of its Stock and a Move to the NASDAQ Main Board.

Business Editors

NEW YORK--(BUSINESS WIRE)--July 18, 2000

The Board of China Continental Inc. (the "Company")(OTC BB:CHCL) announces a major strategy review and a series of proposals to be voted on by shareholders at a meeting scheduled for 1 August 2000.

Strategy Review

In April 2000 the Company established a Business Development Division to spearhead expansion into new areas of business. Following a careful review of the opportunities that exist, the Company has concluded that shareholders' value would be best maximized through the following strategy:

- by expanding current businesses internationally and within

China;

- by diversifying into other high growth and high profitability

businesses.

In its first year the new division will focus on two new key business sectors, Oil & Gas Development and Transportation & Logistics, together with the existing Biotech Farm business.

Acquisition of Oil and Gas Assets

In pursuit of its diversification strategy, the Company has successfully finalized an agreement with Transcontinental Capital Management Limited ("TCM"), for the injection of TCM's fully-owned proven producing oil and natural gas reserves in the Irian Jaya Province, Republic of Indonesia, into the Company. These assets, which represent 15.79 million barrels of proven oil reserves, are being acquired for US$72 million of future net revenue.

The assets being acquired comprise 26 producing wells in three contract areas in Irian Jaya with total production of crude oil amounting to approximately 1,500 barrels per day. The three-contract area covers a total of 41.87 sq.km. of onshore fields. The majority of oil produced is currently sold to Pertamina, the Indonesian state owned oil and gas company.

Indonesia is ranked 13th in the world in terms of proven oil reserves and 9th in terms of production.

Management Restructuring

The injection of the oil and gas assets has brought with it a management team that will form the basis of the Company's Board going forward. Details of the new management team are provided below:

Mr. William Stokes, Co-Chairman Designate: He has over 40 years experience in the oil and gas industry and was Executive Vice President of RL Burns Corporation and King Ranch Oil and Gas. He is the President of the American Institute of Professional Geologists (AIPG) and Vice President of the American Petroleum Institute (AAPI).

Tan Sri Basir, Co-Chairman Designate: The former Chairman of Petronas, the Malaysian state-owned oil and gas company. He is currently Chairman of the Malaysian Airport Berhad and Sepang International Formula One Racing Circuit.

Dr Fernando L. S. Juan, Chief Executive Officer Designate: He holds a doctorate in law and his expertise is in the field of corporate re-structure, investment banking, securities work, personal and institutional asset protection, partner of a Swiss based oil-additive company, Biolex as Far East representative. He was appointed in 1994 as Honorary Consul of Honduras by the Republic of Honduras President Carlos Roberto Reins.

Mr F K Ho, Chief Operating Officer Designate: Formerly a Senior Executive with 20 years service in the Shell Group of Companies. He has more than 40 years experience in the upstream and downstream oil and gas sectors and has held a number of senior posts. He is a petroleum chemist by profession.

Mr. Yeo Chee Beng, Chief Financial Officer Designate: Previously the Regional Financial Controller of the Taiwan-listed Pacific Construction Company Limited. During his 17 year tenure at Pacific Construction he was responsible for the Centrepoint Development in Sabah, Malaysia and was involved in the financial evaluation of several development projects in China.

Dr Tan Ah Mee, Director Designate: He has more than 20 years of commercial and industrial experience, working with companies in Singapore, Malaysia and Hong Kong.

Shareholder Meeting

A meeting of shareholders is scheduled for 1 August 2000 at which the Company will seek permission to implement its proposals regarding the asset injection and the appointment of the new Board. At that meeting the Board will also be seeking shareholders' approval to implement a change of the Company's name and to effect a stock consolidation.

Change of Company Name

In view of its new direction and to reflect the global outlook of the business, the Company proposes to change its name to Harriman Global Resources Inc. (HGR).

Consolidation of Stock

The Company announces that as a further step in its development it proposes to effect a consolidation of its existing common stock. With emerging corporate developments the Company believes that a consolidation will enhance the marketability of its stock and improve its attractiveness to both institutional and retail investors.

Application for NASDAQ Main Board Listing

The Company's legal counsel has initiated the process for NASDAQ main board listing. As the Company develops it intends to implement a comprehensive program of investor relations activities such as road-shows, conference calls and web-casts. In this way the Company intends to maintain a regular and informative dialogue with its existing and potential shareholders.

Mr. Harry Ho, Chairman of China Continental Inc., commented: "The plans we have announced today highlight the breadth of opportunities which exist for the Company as it goes forward. As I relinquish my position as China Continental's Chairman I am confident that the Company has a strong new management team in place to tackle the challenges ahead."

Overview of Existing Operations

The Company's existing activities currently comprise the following operations in China:

-- Danbury Inc. Production and installation of production line

machinery on a turnkey basis.

-- Asia Continental Holding ("ACH") Manufacture and distribution

of chemical fibre related products.

ACH has expanded its products line and introduced 2 new

products in FY2000, i.e. bulletproof vests and fishing net

fabrics. These products are currently marketed through agents

for final distribution in China, Indonesia and Pakistan.

-- China Continental Bio-Tech Farm (the "Farm") Propagation and

supply of agricultural genetic livestock, through the

splitting of sheep and cattle embryos to promote food

production for the growing Chinese population. The Farm,

formerly known as Dong Wu Bio-Tech Farm, is wholly owned by

China Continental (HK) Limited.

The Farm is currently involved in the world's largest Embryo

Transplant Industrialisation Process on 406 km2 of grazing

land in Inner Mongolia. This process will involve the

transplant of 12,000 embryos this year. Within the next 3

years, the reproduction and transplant rate will reach at

least 3 generations of growth, producing more than 100,000

breeding sheep and goats for the supply of pure meat. This

will help to develop China's own Sulfolk and Dosolt Sheep and

Boer Goat populations. To ensure that the Farm imports the

best quality embryos, the company has built its own base for

embryo production in Australia. The company has sent a team of

senior experts comprising professors and doctors to station in

Australia. Full commercial production is now underway.

Discussions continue for the export of animal feed produced by the Farm to Japan and the Farm is developing a two year plan to set up an R&D center in China in conjunction with Melbourne University. This will strengthen the Company's efforts in the R&D of agricultural genetics technology and build its reputation as a leading player in the agricultural genetic industry in the Far East region.

Mr. F K Ho, Chief Operating Officer Designate of Harriman Global Resources Inc., said: "The new strategy is clear: we will build on our existing operations and expand the business into natural resources and transportation. Significant opportunities exist in these areas and we are confident that the Company will make considerable progress in delivering enhanced returns to its shareholders. We are also delighted that Mr. Harry Ho has agreed to be the Senior Consultant to the Board to provide the necessary continuity and vital link for the on-going operations in China."