China World Trade Corporation has signed a sale agreement that will result in the company transferring 30.6% ownership of New Generation Commercial Management Limited, one of the company's subsidiaries, to Wisdom Plus Limited for a total of US$4 million cash by July 29, 2007.

New Generation is a travel agency business with ten subsidiaries in southern China which provides domestic and international airline tickets. During the second quarter of 2006, CWTC's Travel Services business generated US$697,000 in revenues, down from US$1,091,000 for the same period in 2005.

"Since the acquisition of New Generation, we have taken up a down-stream position in the value-chain of the business travel industry. While demand for airline travel continues to grow, increasing oil prices, growing market competition, and increasing overhead costs have eroded profit margins in this segment of our business and we believe they will continue to do so in the long-term," said Chi Ming Chan, CEO of China World Trade Corporation. "This transaction allows us to continue to maintain a substantial interest in New Generation, and at the same time, leverage CWTC's substantial experience, resources and strategic partnerships in the travel services industry to move our position up along the value chain to become a leading management services provider to business travel scenic sites which command higher margins and have the potential to offer significant opportunities for growth and expansion."

The company recently announced the acquisition of a 25% interest in CWT International Excursion Investment Limited, a business travel investment company, which owns a 51% controlling interest in an operating subsidiary Suzhou Tongli, the sole legal tourism operator and planner of all scenic sites in Tongli Town of Suzhou Province, China, with rights to acquire up to 51% of the operating subsidiary.