Concept Industries Memorandum Signed for Internet Data Center in China.

Business Editors

VANCOUVER, B.C.--(BUSINESS WIRE)--Dec. 21, 1999

Concept Industries Inc.,(CDNX:CEU.) (the "Company") is pleased to announce the signing of a Memorandum with the Beijing Jitong Telecommunication Corp. ("BJTC") outlining a framework for the establishment of a joint venture to develop and operate Internet Data Centers ("IDCs") in The People's Republic of China ("China").

BJTC is a subsidiary company of the Jitong Communications Co. Ltd. ("Jitong"). It is owned and controlled by the Chinese government and has a mandate from China's State Council to develop and promote the Chinese Internet industry. Jitong operates a major public data service network and is one of only two commercial Internet backbone systems in China.

Based on the recent WTO announcements, there is an anticipated explosive growth in China for Internet and related e-commerce activities during the next five years. Internet facilities and Internet services support will be in great demand. The proposed joint venture will fulfill these requirements by providing facilities to offer high-speed transmission of large quantity of data, dial up, leased lines, microwave access; and large scale Internet server hosting facilities with backup power, redundancy, and security.

It is anticipated that as foreign companies start to establish their e-commerce activities in China that the proposed IDC can provide the necessary Internet facilities and services. Currently, China's telecommunication industry is still developing and is not yet capable of meeting the requirements for Internet connections based on Western standards. In the United States, several companies are providing Internet Data Services to major corporations. IDCs can manage and operate the Internet support systems more effectively and efficiently because of their specialization.

As follow up to the Memorandum, both parties have agreed to meet again in January to proceed with an implementation plan for the Internet Data Center. Based on this agreement, the Company will continue discussions with interested Internet Data Center operators in both North America and Europe.

CONCEPT INDUSTRIES INC. Michael Ginn, Director

This news release may contain forward-looking statements within the meaning of Section 27A of the Securities Act of 1993 and Section 21E of the Securities Exchange Act of 1934, and is subject to the safe harbor provisions of these sections. Actual results may differ materially from the expectations and estimates of the Company.