China Prosperity International Holdings Limited Appoints Commerzbank and FleetBoston Financials as Financial Advisors for a US$2 Billion Broadband Cable TV Project in China.

Business Editors

NEW YORK--(BUSINESS WIRE)--May 16, 2000

China Prosperity International Holdings Limited (Nasdaq: CPIH) announced today that Commerzbank Hong Kong and FleetBoston Financials (formerly BankBoston) Hong Kong have been appointed as joint financial advisors to the company on broadband cable television network joint ventures in several provinces and cities in the People's Republic of China.

The advisors will also participate in the planning of the related fund raising for the new ventures, which have already secured six agreements in Fujian province, Hebei province and Harbin city.

China Prosperity International Holdings Ltd., of Hong Kong, is listed on the Australian Stock Exchange (stock code "CHI"); the NASDAQ (stock code "CPIH") and Frankfurt Stock Exchange, and through its subsidiary China Prosperity Holdings (Hong Kong) Ltd. on the Stock Exchange of Hong Kong (stock code 979).

Best Fortune Capital Ltd., the largest shareholder of China Prosperity, has proposed to inject its 37% interest and the 30% owned by an independent third party in a broadband multimedia project known as CVN (Century Vision Network) Project into China Prosperity International Holdings Ltd. China Prosperity has appointed Commerzbank and FleetBoston Financials as its joint financial advisors for this proposed transaction.

Best Fortune, with its rich Chinese background and extensive connections in China, has been conducting research on the Chinese broadband cable television markets since 1997. CVN Project has already secured six agreements with the provincial governments, the city governments and the relevant Cable TV Broadcasting Bureau to form co-operative joint ventures in several provinces and major cities, including Fujian province, Hebei province and Harbin City, to provide broadband multimedia cable TV network services to household subscribers.

These joint ventures and co-operative agreements have legally been established and approved by the relevant authorities. It is planned that more than US$2 billion will be invested in the coming few years in those joint ventures, which aim to develop the cable TV networks in those provinces and cities into broadband interactive TV networks and to provide broadband Internet access via TV sets, on-line shopping, video-on-demand, video phone, and other value-added services. It is expected that the joint ventures will have over 30 million subscribers in 10 years, achieve break-even in three to five years, and have the potential of reaching a total profitability of over US$10 billion in 10 years.

The project was evaluated last October by American Appraisal Hong Kong, Ltd., to be US$2.5 billion, and Commerzbank and FleetBoston will be conducting their own evaluation to determine its current market value.

In February, as previously announced, China Prosperity International Holdings acquired 49% of a cable TV network in Baoding, Hebei.

In order to enhance the development of the broadband network, China Prosperity Group, through its listed Hong Kong subsidiary, China Prosperity Holdings (Hong Kong) Ltd., is building manufacturing capacity in Hunan to produce CVN-S1 and CVN-S2 set-top computer boxes specifically designed by CVN for the Chinese market. These set-top boxes together with wireless keyboards enable users to perform PC functions on TV sets and hence spare users the cost of buying computers.

According to FleetBoston Financials, which is now performing valuation of the CVN Projects, the number of existing cable TV subscribers in China was at 80 million in February 2000 and will reach 180 million by 2010, published studies indicate. The cable TV penetration rate in Fuzhou, Chengdu and Guangzhou is over 84%, 83% and 95%, respectively. The existing cable TV networks in China are all analog and one-way transmission. By upgrading the current cable TV networks, CVN Project will be the first to offer digital and two-way interactive value-added services like video-on-demand (VOD), distance learning, distance diagnosis, interactive TV shopping, and other such services in China.

Johnson Fu, senior vice president and head of corporate and institutional banking at Commerzbank, Hong Kong, said, "The market potential of broadband cable TV networks in China is huge. I expect market penetration for these networks will be faster than telecommunication networks, let alone PC users. Therefore the CVN Project is very apt for the standard of living of the Chinese population and provides excellent investment opportunities."

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 Prosperity International Holdings Limited only, and actual results may differ materially. Risks include, but are not limited to, adverse regulatory, technological or competitive developments, uncertain demand for the ventures' services or products, inability to timely develop and introduce new technologies, products and services, pressure on pricing resulting from competition, unforeseen delay, failure to receive on a timely basis necessary permits or other governmental approvals, and delays in the receipt of or failure to obtain any necessary financing which could cause the actual results or performance to differ materially from those described herein. For a more detailed discussion of such risks and other factors please refer to the company's 10-K and 10-Q reports filed with the U.S. Securities and Exchange Commission.

Issued by Publicis Dialog in New York for and on behalf of China Prosperity International Holdings Limited. For further information, please contact:

Gareth Tang - China Prosperity Holdings (Hong Kong) Limited c/o OCCASIONS Corporate & Financial Communications Limited Tel: [phone] Fax: [phone]

Shirley Ng / Derek Poon OCCASIONS Corporate & Financial Communications Limited Tel: [phone] Fax: [phone]

Mark Perlgut Publicis Dialog Tel: [phone] Fax: [phone]