City Network, Inc. Receives Notice from American Stock Exchange That It is Not in Compliance with Continued Listing Standards.

TAIPEI, Taiwan -- City Network, Inc. (AMEX:CSN) (the "Company") a company that designs, manufactures, and markets a comprehensive line of broadband and wireless Internet access solutions and consumer electronic products, announced that it has received notice from the American Stock Exchange ("Amex") that it is not in compliance with certain Amex continued listing standards and that the plan submitted by the Company intended to bring it into such compliance did not make a reasonable demonstration of the Company's ability to do so. Accordingly, Amex intends to strike the common stock of the Company from the exchange by filing a delisting application with the Securities and Exchange Commission unless the Company succeeds in appealing the determination.

Amex has also notified the Company that it is not in compliance with Section 1003(f)(iv) of the Amex Company Guide, which states that Amex will normally consider suspending dealings in, or removing, from listing, a company that fails or refuses to pay, when due, any applicable listing fees established by Amex.

The Company has exercised its right to appeal the determination by requesting an oral hearing before a Listing Qualifications Panel and expects to provide evidence supporting the viability of its compliance plan to Amex at such hearing.