(August 13, 2001, Hong Kong) - Thiz Technology Group Limited ("Thiz" or the "Group"; stock code: 8119) is pleased to announce its first quarter results 2001. Turnover amounted to approximately HK$2,566,000. Gross profit reached HK$559,000, representing an increase of 17 times over the corresponding period of the previous year, due to the successful Linux related products developed by the Group. Loss attributable to shareholders amounted to approximately HK$1,496,000, a decrease of 25% as compared to the same period last year.

The Board of Directors does not recommend the payment of an interim dividend for the period under review.

The Group was successfully listed on the Growth Enterprise Market ("GEM") on July 27, 2001. The continuously strong stock price performance reflected investors' optimism and support on the Linux market and also the enormous growth potential of the Group to become one of the world's leading Linux application providers.

As mentioned before, the Group has launched a number of products to expand its already extensive range of products for its customers among different markets. ThizLinux desktop version 4.2 and ThizServer were both launched during March 2001. In addition to the Linux operating systems, the Group launched ThizOffice, the low-cost office application software that runs on both Linux and Microsoft Windows in May 2001. The beta version of ThizLinux@School also received encouraging results from educational institutions and the formal version should be ready for launch before the end of March 2002.

Business from Linux related application software accounted for 93% of the gross profit whereas computer hardware trading conducted through the B2B and B2C platforms accounted for the remaining 7%. The Group is optimistic of its software related products and foresees exponential growth in the coming years ahead. As software related products continue to grow and expand, its contribution will steadily climb up to account for a major portion of the total turnover. The Group is optimistic that the remaining quarters of this financial year will be promising in terms of revenue and business development.

Mr. Albert Li, Chairman of Thiz, said, "We are very excited about having an associated company of Taiwan's United Microelectronics Corp (UMC), one of the largest computer hardware and chip manufacturer, as our strategic investor. The support from such a solid and reputable company will help fuel our existing strong growth, and we will further strengthen the cooperation as an effort to expand our reach and market network. We are very pleased with our 1Q results, but we have already anticipated such performance due to our excellent products that are of the highest quality."

The Group plans to expand into other Southeast Asian countries, such as Singapore and the Philippines, and also expand the OEM market, as it is a market with high gross profit margins. At the same time, it will continue to seek other strategic partners to boost revenue and profit margin. Capitalizing on the enormous market potential offered by the Greater China market, the Group is optimistic of further solidifying and expanding its position in the industry.

Mr. Li concluded, "With the support from our strong alliances and the unlimited opportunities ahead of us, the Group is very confident of its future growth and well assured our success will be enormous. The combination of our experienced R&D team, customer oriented products and strong marketing network, we expect the remaining quarters to be promising and we look forward to the tremendous growth ahead of us."