Tano China Capital Management and Darby Overseas Investments Sign Landmark Joint Venture with Tianjin Port Tariff-Free Zone Investment Co.

SAN MATEO, Calif. -- Charles E. Johnson, Managing Director of Tano Capital LLC announced today the signing of a three way joint venture between its subsidiary Tano China Capital Management Inc. (TCCMI), the Tianjin Port Tariff-Free Zone Investment Co., Ltd. (TPTFZ), and Darby Overseas Investments Ltd. (the private equity arm of Franklin Templeton Investments NYSE: BEN). TCCMI, Darby and TPTFZ signed an equity joint venture agreement, to formally establish the JJF Equity Fund Management Co., Ltd. in Tianjin, China. Mayor Xiang-Long Dai met with Mr. Chi-Jen Liu, Co-Founder (along with Mr. Charles E. Johnson) and Managing Director of Tano China Capital Management Inc. and the TCCMI delegation before the signing ceremony. Vice Mayor Jin-Du Cui and key city officials attended the meeting reception and the signing ceremony.

Tianjin Mayor Dai expressed his delight at the rapid progress that TCCMI, Darby and TPTFZ have made since initially meeting at the China International Private Equity Forum that took place in Tianjin several months ago and congratulated all parties on the signing and establishment of JJF Equity Fund Management Co. today. He also noted that in the past three months, Tianjin has made positive progress on the opening and development of the Bin-Hai New Area, and Mayor Dai encouraged investment companies to actively participate in Tianjin's infrastructure and industrial development projects and to further contribute to the opening and development of the Bin-Hai New Area.

Tianjin Vice Mayor Cui stated at the signing ceremony:

"Tano China Capital Management has already made very positive progress on various investment projects in Tianjin. The establishment of JJF Equity Fund Management Co. not only marks a new milestone for the cooperation between the three parties, it will provide a big boost to jumpstart the rapid development of the financial industry in Tianjin."

Mr. Liu Chi-Jen, Managing Director of TCCMI added:

"Tano China Capital Management has begun the search for more investment partners in the international capital markets and will continue to introduce more capital and technical expertise to Tianjin as it finds good investment projects. Our goal is to build a large investment and private equity platform to serve and facilitate the rapid development of Tianjin City."

Tano China Capital Management Inc., a subsidiary company of Tano Capital, is a private equity investment management company that invests in domestic Chinese companies and industries. Darby Overseas Investments Ltd., a direct subsidiary of Franklin Templeton Investments, is an emerging markets investment firm that sponsors and manages private equity, mezzanine finance, and fixed income funds for institutional investors and high-net worth individuals. JJF Equity Fund Management Co. aims to introduce advanced and innovative private equity investments to the financial, aviation, information, infrastructure and real estate arenas and actively promote the economic and urban development of Tianjin City.

Tano China Capital Management Inc. also signed cooperation agreements yesterday with the Office of Planning and Development of Aviation Industrial Park and the District Government of Bei-Cheng on the development of an agricultural product trading center.

Mr. Charles E. Johnson, Managing Director of Tano Capital LLC, stated:

"We are particularly excited by this joint venture opportunity in Tianjin as the development of that city is the primary focus of the Beijing Central Governments' 11th Five Year Plan. Targeting a specific city as the focus of a massive five year development push is now a well established and successful pattern in China, beginning with Guangzhou in the Zhujiang River Delta Economic Core in 1981 by then President Deng Xiaoping, followed in 1991 in the 8th Five Year Plan by President Jiang Zemin in Pudong, Shanghai in the Yangtze River Delta Economic Core. The speed and unbelievably rapid progress and development made in both Guangzhou and Pudong during the 6th and 8th five year plans respectively was absolutely breathtaking. The Central Government has now made development of Tianjin City in the Bohai Bay Economic Core the center piece of its 11th Five Year Plan for years 2006-2011. President Hu Jintao has thus made development of Tianjin a core priority for the Central Government, and the successful completion of this project will become one of the major legacies of his administration. We at Tano are very excited and motivated to be directly involved in such a high-profile project of this magnitude that enjoys such strong Central Government support and visibility."