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MTC ANNOUNCES JOINT VENTURE AGREEMENT ON NATIONWIDE MOBILE TELECOMMUNICATIONS & LONG-DISTANCE SERVICE IN PEOPLE'S REPUBLIC OF CHINA

 RICHMOND, British Columbia, April 1 /PRNewswire/ -- MTC Electronics Technologies Co. Ltd. (NASDAQ: MTCEF) announced today that it has signed a joint venture agreement with China Satellite Launching, Tracking, and Control Central (CSLTCC) and a Hong Kong-based investment company to form a joint venture company that will engage in telecommunications services and manufacturing throughout the People's Republic of China.
 MTC's interest in the proposed joint venture company is 51 percent. CSLTCC and the Hong Kong-based partner will together have a 49 percent interest. The life of the proposed equity joint venture company is 25 years. The agreement, signed on March 6, states that the proposed joint venture will:
 1. Establish and develop digital cellular and paging systems;
 2. Provide long-distance telecommunications services using satellite systems;
 3. Manufacture digital cellular telecommunications equipment, including cellular handsets.
 The joint venture's first proposed site for digital cellular and paging service will be Beijing. The joint venture company will develop digital cellular and paging service in sites throughout the People's Republic of China.
 Under the agreement, CSLTCC will, among other things, be responsible for obtaining and providing frequencies for cellular systems, applying for access to the public telephone network, and assisting the proposed joint venture in exploring the market for digital mobil telecommunications. In addition to participation in the establishment of digital mobil telecommunications systems, MTC will be responsible for acquiring and introducing advanced mobil telecommunications equipment, providing management services, and training senior technicians. MTC and the Hong Kong-based investment company will each provide a portion of the capital of the joint venture.
 Under the Chinese joint venture law, a joint venture between a foreign company such as MTC and a Chinese party is formally established and may commence operations after the appropriate government agencies have approved a project proposal, a feasibility study by the co- venturers, and a formal venture contract. MTC's joint venture agreement with CSLTCC is the beginning of this process.
 CSLTCC is an affiliate (i.e., a Legal Enterprise Person) of the Commission of Science, Technology and Industry for National Defense (CSTIND), which is directly under the State Council. (The State Council is the highest administrative body in the People's Republic of China and is composed of Premier, the Deputy and Vice Premiers and the heads of the government Ministries and Commissions). The CSTIND, however also reports directly to, and operates under the guidance of the Central Military Commission. The Central Military Commission is the highest military authority in the People's Republic of China and is responsible for setting national defense policy. (Note: The Central Military Commission is a parallel body to the State Council in China's government structure.)
 The agreement between MTC, CSLTCC, and the Hong Kong-based investment company reflects a recent policy which was announced at a group discussion of the delegation of the People's Liberation Army (PLA) at the Eighth National People's Congress in Beijing. As reported by the Xinhua news service on March 16, Liu Huaqing, vice chairman of the Central Military Commission said:
 "The armed forces should subordinate themselves to, and serve the
 cause of the country's economic development, and make contributions
 to the country's economic development and reform, and opening to the
 outside world."
 The joint venture agreement announced today supplants the letter of intent between MTC and the Ministry of Aerospace Industry relating to the establishment of a cellular system in Beijing. The Ministry of Aerospace Industry was abolished under a government reorganization plan that has been submitted to the National People's Congress by the State Council.
 MTC Electronic Technologies Co., Ltd. is a Canadian company headquartered in Richmond, near Vancouver, British Columbia. The company holds interests in joint venture companies that manufacture telecommunications products and will provide telecommunications services in the People's Republic of China. It also manufactures and sells MTC brand and private-label consumer electronics in North America through discount and convenience stores.
 -0- 4/1/93
 /CONTACT: Peter Verrengia, Kate Rohrbach, or Cindy Carpenter of Fleishman-Hillard, 212-265-9150, for MTC Electronics Technologies Co./
 (MTCEF)


CO: MTC Electronics Technologies Co. Ltd.; China Satellite Launching,
 Tracking, and Control Central ST: IN: TLS SU: JVN


PS-LD -- NY001 -- 1892 04/01/93 09:23 EST
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Date:Apr 1, 1993
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