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IFC Invests In Chinese Software Company

Beijing, October 21, 2004 —The International Finance Corporation, the private sector arm of the World Bank Group, today agreed to invest $4.0 million in HiSoft Technology International Limited, a China based software services outsourcing company. IFC's investment will contribute to the development and distribution of Chinese software services for large international clients, helping to fulfill the increasing demand from the company’s existing international customers and expand its base. This is IFC’s first investment in a Chinese software services company. The investment will help expand and develop its software product offerings, select acquisitions, and develop more  software development centers.
HiSoft develops innovative software services for clients in the United States and Japan. The investment will support HiSoft’s expansion of its software research and development facilities in Dalian and expansion of its delivery platform abroad. It is part of a $20 million round of equity financing led by JAFCO Asia that includes the participation of Granite Global Ventures, a US based venture capital firm, and Intel Capital, the investment arm of Intel Corporation.
“HiSoft is  the type of innovative firm that China will rely on to develop its technology sector and become a leader in the information-based global economy,” said IFC Executive Vice President Peter Woicke.“IFC is committed to providing financing to information and communications-related projects that support China’s policy to develop the software industry.”  IFC has targeted IT and communications as one of a handful sector priorities globally because of its enormous impact on development.  
“HiSoft’s long term objective is to be a global leader in the enterprise software outsourcing space. We will do this by leveraging our strong delivery capability and project management resources, said Li Yuanming, the founder and CEO of HiSoft. “We are excited about the opportunities to expand our business and believe that our new international shareholders, including IFC, will be instrumental in helping us achieve our ambitious goals.” HiSoft is based in Dalian and has offices in Tokyo and Atlanta, USA. The company’s activities have strong developmental benefits through programs to develop local technical resources in China. It will also stimulate the software sector in China as well as Chinese delivery capabilities for international customers.
The mission of IFC ( www.ifc.org ) is to promote sustainable private sector investment in developing countries, helping to reduce poverty and improve people’s lives. IFC finances private sector investments in the developing world, mobilizes capital in the international financial markets, helps clients improve social and environmental sustainability, and provides technical assistance and advice to governments and businesses. From its founding in 1956 through FY04, IFC has committed more than $44 billion of its own funds and arranged $23 billion in syndications for 3,143 companies in 140 developing countries. IFC’s worldwide committed portfolio as of FY04 was $17.9 billion for its own account and $5.5 billion held for participants in loan syndications.