China World Trade Corporation announced today that it has completed the acquisition of a 51% equity interest in the New Generation Group (the operating arm of Guangdong Huahao Group), a leading Chinese travel company, for a total consideration of approximately $10 million.

The New Generation Group is believed to be the largest airline ticketing agent in Southern China. The purchase price was paid for via a combination of cash and approximately 4 million shares of restricted common stock. This acquisition marks a very significant component in China World Trade Corporation's strategy to have the capability to provide premium turnkey travel services to its members all over the world as well as regular travel services to other clients. New Generation Group is believed to generate about one quarter of the revenues of Ctrip.com International Ltd and about one half the revenues of Elong Inc., a Beijing travel company which recently sold a 30% stake to InterActiveCorp. for $60 million.

China World Trade now expects to generate total value of transactions for the year ended December 31, 2004 of over $60 million (as a result of the pro-rata recognition of only 5 months operation results of the New Generation after the completion of the acquisition in mid of the fiscal year) and significant cash flow. For 2005, China World Trade estimates that it will generate approximately $250 million in total value of transactions, which represents 12 months of operations and additional synergies from capitalizing on marketing opportunities from China World Trade's existing business with New Generation's travel services.

This acquisition, together with our operating business clubs in the major cities of China, significantly increases the value added options for both our international and domestic members, said Chi Hung Tsang, Chairman of China World Trade Corporation. This acquisition significantly increases the size of our company, revenue base and creates powerful synergies between the businesses.