Hartcourt/Sreamingasia.c om NEWS!!

Even a year ago, it made sense to make a China-related investment index out of microcaps - the share prices of multinationals in China hardly ever budged based on their China business or prospects, and most of the companies announcing interesting new business in China were startups, entrepreneurs, and plain old gamblers and golddiggers heading East.

That was a colorful crowd, but the fact is those early days are coming to a close. Today, just for fun, I printed out the last two days worth of Yahoo headlines on China. A year ago, there might have been one or two interesting new ventures announced each day, mostly by smallfry. Today, I counted no fewer than 58 announcements of joint ventures, private placements, regulatory approvals, and bullish China announcements by major American companies pushing into China. Microsoft, which just saw a year in which China revenues doubled, predicted the same would happen again this year. Toyota announced it will make 30,000 compact cars in China. Ericsson, Compaq, Applied Materials, Network Solutions and Netalone were among the others to announce new China ventures.

More Even Keel

The Virtual China 30, as it evolves, should go towards becoming a reliable daily indicator of the state of China-Western business climate. And that means having larger, more heavily invested companies on that index. By virtue of their close ties to the Chinese government, the managements and the share prices of those companies will also tend to thrive or wane more reliably in step with the warming and cooling of China-Western affairs.

True, Motorola or Ericsson stock moves only ten days a year on China news, but that is ten days more than a year ago, and things are going in that direction. Rest assured, now, major China news will always move those kinds of stocks, and the VC-30 as well. In the meantime, the relative stability of those stocks will tend to keep the VC-30 on a more even keel.

Gamblers and Buccaneers

Also in keeping with our “growing up” trend, most of the new Virtual China 30 stocks are traded on the NASDAQ, New York Stock Exchange, or Stock Exchange of Hong Kong. For variety, one NASDAQ-traded new media Taiwan stock (Gigamedia), and two “old economy” ADR’s traded on the NYSE have also been included as they tend to respond to changes in the China-Western business climate as sensitively, and sometimes more so, than any other: China Eastern Airlines and Shanghai Petrochemical.

At the same time, we recognize that great ideas often arise in the smallest companies, and that China-Western trade remains a tremendously fertile area for enterprising businessfolk - gamblers and buccaneers included. They’re often the most interesting companies, and sometimes the most profitable ones, to track and invest in. So we’ll continue to watch the microcaps and smallcaps in China although, increasingly, in another setting than the VC-30.

Here’s the new lineup, provisional for now:

The Virtual China 30

Adatom
Alcatel
AsiaContent
AsiaInfo
Chinadotcom
China Eastern Airlines
China Telecom
Cisco
Entrust
Ericsson
GigaMedia
Global Crossing
GraphOn
GMAI
GRIC
HKT - Cable & Wireless
Legend
Lucent
Motorola
Nokia
Nortel
New Tel
Pacific Century
PetroChina
Qualcomm
Shanghai Petrochemical
Sina.com
Tom.com
UTStarcom
Zi Corp


The following aggressive young micro- and small-cap companies will continue to be covered, and rated using the "V-Rating System," under another rubric yet to be decided:

Avaterra
Cathay Online
CBQ Inc
China Contintental
Communication Intelligence
Intermost
EvisionUSA.com
Forlink
The Hartcourt Companies Inc.
My Web
Southland Financial Inc.
Telpac Industries Inc.
Tengtu
Tianrong Internet Products & Services
Vertical Computer Systems Inc.
Xin Net

To discuss this article with me and others, or to air your views about the Panglossian* business of making money on China concept stocks, please stop by the China Stock Forum.

Business Summary
HRCT is a holding company with a primary focus in online services in Asia. Hartcourt capitalized on its experience and connections in China to focus on the most promising area of the China market: the Internet. The ultimate goal of Hartcourt is to be the leading Internet company in Asia with a planned 18 acquisitions through year 2000. HRCT's currently announced joint ventures Sinobull, Innostar, China Law and SCIC have laid the ground and have enabled HRCT a giant step toward establishing itself as a major provider of on-line services in China. HRCT has also signed a term sheet agreement to acquire a major percentage of an ISP in China…announcement/acquisition pending due diligence by Morgan Stanley.

Company Website - www.hartcourt.com/
Company PR's: www.hartcourt.com/i/pressreleases.htm
Shares outstanding: 30 million Float: 18 million estimated

Financials: www.edgar-online.com/brand/yahoo/search/?sym=hrct
Nasdaq Application: www.hartcourt.com/i/pressrelease012400.htm

Key Company relationships:
Auditors: BDO International… www.hartcourt.com/i/pressrelease122999.htm
Sinobull Business Plan: Ernst & Young… www.hartcourt.com/i/pressrelease121399.htm
Investor Relations: Financial Relations Board… www.hartcourt.com/i/pressrelease040400.htm
China Telecom/Bejing Telecom: www.hartcourt.com/i/pressrelease110299.htm
Financing: Swartz Private Equity, LLC: www.hartcourt.com/i/pressrelease010600.htm
Yahoo-China… cn.yahoo.com/fnews/sinobull

What is Sinobull.com joint venture?
Sinobull is a financial services provider/portal focusing on online trading, financial information and market data. Sinobull's revenue base encompasses advertising, licensing, online trading provider, vertical and horizontal content agreements. SinoBull.com will provide investors throughout Mainland China the resources of trading equities/futures/options online, gather extensive financial research information, real time quotes, message boards and a future planned financial cable TV network. www.sinobull.com/
202.134.71.180/hk/main/front.asp?lang=en

UAC Online…
operates the first and only nationwide licensed online trading network in mainland China, connecting investors with their stock brokerage offices via ChinaPAC; China telecom's nationwide secure 162 packet switched private network through computer, Legends "Stock Easy" set top boxes, and Palm PDA's… www.hartcourt.com/i/pressrelease090999.htm
National License: www.hartcourt.com/i/pressrelease103099.htm
Website: www.162stock.com/index-English.htm

Financial Telecom Ltd...
is a financial databank providing real-time stock quotes and other information of Hong Kong listed-companies to institutional and retail investors. FTL has been in business for 16 years and had HK $16.6 million in revenues in 1998. www.hartcourt.com/i/pressrelease082599.htm
Website: www.asianetvest.com.hk/

StreamingAsia.com…
is the leading Internet Broadcaster who provides comprehensive audio and video delivery or Streaming solutions to businesses, professionals, organizations, web site owners and content publishers. Our powerful network infrastructure enables us to stream superior-quality multimedia advertising, live event broadcasting and on-demand audio and video contents over the Internet to target web-enabled audiences all over the world. www.hartcourt.com/i/pressrelease120799.htm
Website: www.streamingasia.com/webpage/index.htm

LogicSpace Ltd.
is wholly owned Streaming Asia.com subsidairy and an Internet consulting and web application development company that provides a wide range of Internet services, including web page design, system architecture and solution implementation.
biz.yahoo.com/bw/000530/ca_hartcou.html
Website: www.logicspace.com/

Gou Mao of Shanghai …
Specializes in futures, indices and commodities data, which will complement the financial information database of Hua Xia Info, and the financial delivery systems of FinTel. www.hartcourt.com/i/pressrelease122899.htm
Website: www.radiocompu.com/

China Broadcast and Television Cable Networks Ltd
A multi-year effort with Shanghai Guo Mao to jointly develop and deploy a financial TV channel to be marketed to 80 million Chinese cable TV subscribers across all Chinese provinces and cities. The development and launch of the planned CCN Financial TV Channel should put the partnership into a
leading position similar to CNBC or CNN Financial programming broadcast in the United States
Website: www.ccn.net.cn

Shangdi Network of Beijing…
is one of three owners of Hua Xia Info, the financial data and media arm of Hua Xia Securities, the second largest brokerage firm in China. Through this relationship, SinoBull will obtain coverage and promotion from Hua Xia Info's cable TV financial channel, similar to Bloomberg TV. Hua Xia Securities will provide the brokerage house to process online stock trades. www.hartcourt.com/i/pressrelease121999.htm

Other relationships:
Legend computer
Through joint development with Hua Xia Securities, Legend will produce inexpensive cable TV set top boxes for those investors wanting the ease of online trading, but without computer use. Legend is the largest manufacturer of computers in Mainland China, and the "Stock Easy" set top box will showcase the Sinobull Financial Portal.
Website: www.legend-holdings.com/

Sinobull Customer Relationships:
Hua Xia securities: www.hartcourt.com/i/pressrelease090999.htm
Xiagcai Securities: biz.yahoo.com/bw/000428/ca_hartcou_1.html
Guosen Securities of Shenzhen (www.guosen.com.cn): www.hartcourt.com/i/pressrelease032000.htm
Streaming Asia customer list: www.streamingasia.com/servlet/...ut&s=static&xsl=customerslist

ISP acquisition (announcement/acquisition pending DD by Morgan Stanley)…per the first quarter 2000 10Q report…

"On April 27, 2000, Hartcourt signed a Stock Purchase Agreement Term Sheet with a third party to form a new entity of which Hartcourt desires to purchase fifty-one percent (51%) of the outstanding shares of the capital stock and the third party agrees to retain the remaining forty-nine percent (49%) of the outstanding shares. The transaction is to close no later than 45 days following the execution of this Agreement during which time all due diligence shall be completed, which includes evaluation of the third party and the operating company by Morgan Stanley, a legal opinion of counsel as to the acceptability of the proposed structure of Hartcourt's acquisition of fifty-one percent (51%) of new entity, financial reviews, et al. On April 28, 2000, Hartcourt entered into an agreement with another third party who opened the escrow and deposited $10,000,000 on behalf of Hartcourt. Hartcourt is currently performing its due diligence and expects to complete the transaction."

What Is Innostar?

Innostar is a development stage nationwide Internet Service Provider (ISP) and IP Phone Service in China. Innostar has been operating an IP Phone Service in Beijing for the last 14 months, in cooperation with a leading Chinese telecom company. ESAT Inc. was partnered to provide in providing high-speed Internet connections via satellite. Over the 3 months Innostar's partners and plan will unfold to become worth 5 times that of the Sinobull IPO. Innostar JV is due to IPO in the spring of 2001.
www.hartcourt.com/i/pressrelease102599.htm
Website: www.hartcourt.com/i/pressrelease022900.htm

eSAT Inc: www.hartcourt.com/i/pressrelease120199.htm
Website: : www.esatinc.com

What is SCIC?
Sichuan China Integrated Cable Network Co. Ltd. (SCIC) is the newest of HRCT's joint venture investments. In combination with Shenzhen Sinlan Investment Co, SCIC will use the exclusive TV cable network in the capital city of Chengdu, Sichuan province to synergize Sinobull and Innostar.
Due to IPO in year 2001 www.hartcourt.com/i/pressrelease022900.htm

What is China Law?
China Law Corp. announced an exclusive license with the PRC/Supreme People's Court to obtain the rights of online publication of the court cases and judicial interpretation of the Supreme People's Court of the PRC. HRCT has been selected by China Law Corp. to develop Internet access to the decisions of China's People's Supreme Court available through HRCT's Internet sites.
www.hartcourt.com/i/pressrelease050900.htm

Other Relationships and Acquisitions:
eMPACT Solutions: www.hartcourt.com/i/pressrelease021400.htm


Management: www.hartcourt.com/i/management.htm
Dr. Alan Phan: Chairman and CEO Hartcourt companies
Michael Bianco: CEO Sinobull
Simon Shi Zhang: CEO UAC
Stephen Tang: CEO FTL
Dr. Charlie Q. Yang: COO HRCT
Mr. Duc Duong: CTO HRCT
Mr. Manu Ohri: CFO HRCT
Jack Westfield: Vice president of Corporate Finance HRCT
Mr. Frederic Cohn: Director and Vice President HRCT

“It is the only nationwide online financial services Web
site in China,” Bianco said, adding that the site averages
1.8 million page views a day.

Of course, there are a few glitches to be worked out. “The
technology needs to be further developed on the
infrastructure, and security issues need to be looked at
closely. And you have a real challenge in finding people
who are IT (information technology) qualified,” Bianco
said. “Other than that, it’s easy.”

While Hartcourt may control one of the first financial Web
sites in China, it is not the only one.

Others include HomeWay.com, StockStar.com, China.com and
Sina.com, providing mostly financial news and content.
Hartcourt also wants to become the next CNBC of China. And
that may happen very soon. One of Hartcourt’s subsidiaries,
Shanghai Guo Mao Financial Corp., has teamed up with China
Cable Networks to provide financial news to the 80 million
cable TV viewers in China. Hartcourt’s subsidiary will
develop TV content, including real-time market data and
commentary.

Phan said his company is looking for anchors right now and
preparing to broadcast from 9 a.m. to 10 a.m., Mondays
through Fridays, beginning Aug. 1.

China, with 1.3 billion people, is one of the biggest
untapped computer markets in the world. And it is a nation
of astute business people hungry for financial information.

Goldman Sachs Investment Research shows that in 1998 there
were 2.4 million Internet users in China and 700,000 in
Hong Kong. Within the next three years, that is expected
to explode to 80.5 million Internet users in China and
3 million in Hong Kong.

“China currently has a fairly low rate of Internet hosting
and PC penetration,” noted Matt Sanders, an analyst with
Forrester Research, an Internet analysis firm in
Massachusetts. “But China has the second largest number of
cell phone subscribers, second only to Japan.”

Industry analysts are expecting Chinese consumers to use
those wireless phones to access the Internet for e-trading,
e-commerce and eventually e-banking.

And Sinobull.com, the holding company formed to operate
the Web site with five Chinese companies, hopes to
capitalize on that market. It is planning to offer a host
of financial services that are not currently available in
China, but may be one day if the Chinese government lifts
regulatory controls on the financial industry.

Hartcourt has always had dealings in China. So when its
stock price dipped to around 30 cents a share in fall 1998,
from a one-time high of $7.50, the board of directors made
a decision. “We were doing $24 million to $25 million in
sales from manufacturing, and we were slightly profitable,
but our stock price was low,” explained Phan. “No investors
were interested in manufacturing, even though we were
slightly successful. So we decided to participate in the
New Economy. We were the early players and we wanted to
capitalize on our years in China.”

It sold off its pen factory in China and transferred all of its environmental products manufacturing operations to a
spinoff called Enova.

Next, Hartcourt entered into joint ventures with five
Chinese companies that give the Los Angeles firm access to
the Chinese Internet and telecommunications industries.
Those include Hong Kong-based Streaming Asia Ltd., a
provider of streaming video and audio content; UAC Stock
Exchange Online; Financial Telecom, a distributor of
financial information via wireless apparatus; Shangdi
Network, a multimedia distribution network for financial
information; and Shanghai Guo Mao, which provides financial
products and information.

The new strategy’s effectiveness in boosting Harcourt into
the black remains to be seen.

After suffering a net loss of $21.3 million ($1.18 per
share) for the year ended Dec. 31, 1998, Harcourt improved
to a net loss of $7.9 million (40 cents a share) last
year.

Press: Hartcourt Subsidiary to Participate with China Telecom in Campaign to Bring ISP Services to 10 Million New Users
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Hartcourt Subsidiary to Participate with China Telecom in Campaign to
Bring ISP Services to 10 Million New Users

Los Angeles, CA. 06/06/00 -- The Hartcourt Companies, Inc. (OTC: HRCT,
Frankfurt: HCT), www.hartcourt.com, today announced that its
subsidiary, Sinobull.com, has agreed to become a strategic partner in China
Telecom's new campaign to obtain 10 Million new ISP subscribers by the end
of 2001. The goal of the China Telecom project is to establish a
consumer focused web portal for its ChinaNet ISP called www.sinohome.com, with
SinoBull being its primary financial data provider. A major multi-media
blast with advertisements promoting sinohome.com and other ChinaNet ISP
services will be distributed through Chinese-based newsprint, radio and
television.

Following the advertising strategy of AOL in the U.S. market, China
Telecom intends to mail out 10 Million CD-ROM's in the next 5 months and
20 Million CD-ROM's in the following 12 months to offer a trial period
of free ISP service and other promotional services to targeted
households in China. The CD's will have the SinoBull logo at the right top
corner of the opening page, linking users to the SinoBull.com web site. In
addition, the SinoBull logo and highlights will be printed on the back
cover of the first one million CD's.

Dr. Alan Phan, Chairman & CEO of Hartcourt said, "China Telecom,
China's largest telecom provider, is today in a similar position in the
Chinese market as AT&T had been in the U.S. back in the 1960's. They
establish the technology trends, and dominate the Chinese market in the areas
of telecommunications and the Internet. For SinoBull to be included in
their marketing strategy is a great honor. If we get just 5 percent of
these new subscribers to log onto SinoBull regularly, we would expect
to leapfrog into the number-one position for all financial portals in
Greater China. This is an achievable goal which we hope to realize by
year-end 2000."

About China Telecom:

China Telecom is a state-owned company and is the number-one telephone
service provider in China. Besides its exclusive land-line phone
service, China Telecom is also ranked first in mobile phone subscribers via
its subsidiary, China Mobile. Its Internet Service Provider, ChinaNet,
has more than 80 percent share of the ISP market.

About the SinoBull Group:

SinoBull is a technology-driven financial services group providing
retail investors and financial institutions in Greater China with access to
comprehensive financial information and the ability to execute
financial transactions online. SinoBull offers these services through four
major channels: financial portal, online trading platform, data
broadcasting and financial technology solutions. Sinobull.com Ltd. is planning to
complete an Initial Public Offering later this year

About Hartcourt:

The Hartcourt Companies, Inc. is a holding and development company that
is building a network of Internet and telecommunication service
companies in The People's Republic of China (China), including Hong Kong, in
partnership with Chinese entrepreneurs as well as Chinese
government-owned entities.

Its mission is to become one of the leading broadband applications
infrastructure providers in Asia, including the development of broadband
networks and vertical market focused content for broadband and wireless
applications. Detailed information on Hartcourt and its major subsidiary
SinoBull, which has developed a financial services Web portal and a
platform providing secure online stock trading for major brokerage firms
in China may be obtained via the company's Web site, www.hartcourt.com.

Forward-looking statements

Certain statements in this news release may constitute "forward
looking" statements within the meaning of Section 21E of the Securities
Exchange Act of 1934. Such forward looking statements involve risks,
uncertainties and other factors, which may cause the actual results,
performance or achievement expressed or implied by such forward looking
statements to differ materially from the forward looking statements.