(July 19, 2001, Hong Kong) - Thiz Technology Group Limited, ("Thiz" or the "Group"; stock code: 8119), aiming to be the world's favorite Linux application software provider, announced today its proposed listing on the Growth Enterprise Market ("GEM") of The Stock Exchange of Hong Kong Limited ("Hong Kong Stock Exchange"). The Group plans to place 34.5 million shares to institutional investors at HK$1.19 per share. CSC Asia Limited is the Sponsor of the Share Offer, and has granted an over-allotment option to issue up to an aggregate of 4,100,000 shares.

Thiz is the first developer and provider of a range of Linux solutions in Hong Kong targeting PC users. Benefiting as one of the first established players in the industry, the Group is confident of becoming the leading mainstream Linux application software developer. Its products include Linux operating system, Linux applications and other related services such as software installation, training and education. Thiz launches high quality products that are flexible to customize for clients of Small and Medium Enterprises (SMEs), professional and educational institutions.

Within a short period of time, the Group has successfully launched four products. ThizLinux 4.2 is an operating system that includes basic office applications and fully supports both traditional and simplified Chinese. ThizOffice, a set of windows applications, is compatible with both MS Windows and Linux operating system and compatible with MS Office file format. ThizServer is catered for servers while ThizLinux@School is catered to educational institutions and students.

Thiz is also engaged in several ancillary businesses. The Group currently operates four different portals of thiz.com, thiz.com.hk, thizbiz.com and thizlinux.com, as marketing channels to raise the Group's awareness and to promote its products. Through these portals, the Group offers its Linux products, computer hardware and other technology related products that help generate revenue. In addition, the Group also provides web solution services such as web designing and website development built on Linux platform to satisfy customers' needs.

Mr. Albert Li, Chairman of Thiz, comments on the potential of the Linux industry. "What started off as an alternative operating system in the US, Linux has established itself to gain wide acceptance. We have restructured our resources to focus on the development of Linux solutions in order to increase the profit margin substantially. The 88% Compound Annual Growth Rate (CAGR) demonstrates the enormous potential of the Linux market to bring profit for the Group within the very near future."

Thiz is one of the few Linux application software developers in Hong Kong with its own efficient and effective in-house R&D team. Well aware of customer needs, the team emphasizes on innovative software development to differentiate the Group from other Linux developers. Furthermore, as an effort to increase market share and to extend market reach, the Group has established strategic alliances with numerous well-established corporations to gain an immediate worldwide access to the Linux market. At the moment, the Group is selling its products in the US, Hong Kong, PRC, Taiwan, Macau and Southeast Asia countries.

Other future strategies for the Group include leveraging on the increase in demand for Linux applications and services, especially in the Greater China region. First, and most important of all, upon the PRC entrance to WTO, Thiz can capitalize on the government's push for Intellectual Property (IP) rights and the growing need for legal software. Secondly, the Go West Project will increase business opportunities in the PRC as well as increase the number of SMEs demanding for the wide range of affordable software that Thiz can provide. Finally, the PRC state policy in supporting Linux operating system will create unlimited opportunities for new Linux products, services and clients. As an effort to facilitate the enormous sales and marketing activities in the PRC, the Group will set up sales offices in Beijing to execute its aggressive expansion plans.

The listing opportunity will strengthen the confidence of customers, suppliers and partners of the Group. The first Linux application software developer to be listed on GEM will continue to develop and diversify its Linux-based applications such as Linux based ERP, point of sales and other enterprise software. Mr. Albert Li concluded, "Aiming to become a one-stop Linux application software developer and further solidifying our footage in the industry, we will continue to focus on building our brand name to evolve as the world's leading Linux application provider, bringing impressive return to our investors."

Thiz announces its plan to be listed on GEM to help bring the business to another stage. After deducting all related expenses, the total net proceeds of HK$26 million will be applied to the following areas:

• investment in joint ventures for application software development and promotion;
• investment in joint ventures to develop Linux-based solutions;
• set up of sales office in Beijing, the PRC;
• marketing and promotion of company products;
• enhancement of the Group's existing products;
• development of web applications and other computing services;
• purchase of computer hardware;
• remainder as additional general capital for the Group