TEDA Travel Group has entered into an agreement to acquire from Youwei Zheng a majority interest of Guangdong Tianma International Travel Company, a travel agency headquartered in the Guangdong Province.

The acquisition is expected to close in early June 2006.

Tianma was originally established in 1985 under the Guangdong Travel Bureau, and reorganized as a limited liability company in 2000. Tianma's revenue in 2005 exceeded US$4.8 million.

Tianma expects its revenues to grow materially following the grant of the International Travel Agency Business License to Tianma in April 2005 by the PRC's State Travel Bureau. Only holders of this license are allowed by the PRC government to operate outbound travel services.

According to the PRC's State Statistical Bureau, the 2008 Olympic Games to be held in Beijing will add 0.3 percent to gross domestic product every year from now until 2008. By 2008, the State Statistical Bureau estimates that China may become one of the world's top tourist destinations, with more than 180 million arrivals and a target income from tourism of approximately $400 billion, or 8 percent of total gross domestic product.

With the International Travel Agency Business License, in addition to the traditional inbound travel services and traveling within China, Tianma believes it is poised to provide outbound travel services which are widely perceived to have much greater potential and offer better returns.