Chinese National Government Issues Nationwide License to CBCom's Strategic Partner Chinet.

Business Editors & High-Tech Writers

ENCINO, Calif. & BEIJING--(BUSINESS WIRE)--Dec 18, 2001

CBCom Inc. (OTCBB:CBCI) today announced that its strategic partner in the People's Republic of China (PRC), Beijing Chinet Information Technology Co. Ltd. (Chinet), has been awarded a license to operate its Internet Service Provider (ISP) business nationwide.

After months of effort working with the Ministry of Information Industry (MII), the regulatory body for the telecommunications industry in China, Chinet has received a license granting full authority for nationwide ISP operations in nine of China's provinces and cities. Representing the majority of all Internet users, these areas include Beijing, Shanghai, Liaoning, Zhejiang, Fujian, Hubei, Guangdong, Sichuan and Chongqing. CBCom's license area now covers 62.5% of China's 26.5 million Internet users.

As a result of this nationwide license, there is no longer a requirement to seek individual licenses in each city of expansion. Prior to obtaining a nationwide license, it was necessary to go through a lengthy and complicated regulatory process in order to transfer licenses from acquired ISPs. This is no longer necessary and will streamline future acquisitions.

The new license also reduces the cost of future acquisitions. ISP licenses are considered highly valuable due to the difficulties in obtaining them, and owners typically have placed a high value on the license as a part of the overall valuation of the business. In negotiating future acquisitions, Chinet will need to acquire only the tangible assets relating to operations and goodwill relating to customers.

In a statement from CBCom's CEO Max Sun, "Having this license puts us at a distinct advantage over any other ISP that may be considering doing acquisitions or even just expanding their operations within China. Licenses and permits to operate an ISP nationwide are the largest barrier to entry for any company that desires to operate and grow in the ISP business sector. We have now completely overcome that barrier. I expect this to greatly reduce the time required for our future acquisitions."

About CBCom Inc.

CBCom Inc. is a development-stage company positioning itself, through strategic partnerships and acquisitions, to become one of the largest non-state-owned Internet Service Providers (ISPs) in China's large and rapidly growing Internet market. To that end, CBCom has assembled a core management team experienced in start-up operations, financial management, marketing and the Chinese telecom market. By entering the market early, CBCom will enjoy an advantage in China's young and rapidly growing market for Internet services and content. For more information see www.cbcom.net.

Except for historical financial information that may be contained herein, the matters set forth in this release are forward-looking statements that are dependent on certain risks and uncertainties, including but not limited to such factors as market demand, pricing, and changes in worldwide economic conditions. This report should be read in conjunction with the Company's annual report on Form 10-K and its quarterly reports on Form 10-Q.