BEIJING, China, September 27, 2005
—Microsoft, International Finance Corporation (IFC) and Chinasoft International Limited signed today a strategic investment agreement in a ceremony held in Beijing. According to the agreement, Microsoft and IFC will invest up to $20 million and
$15 million respectively in Chinasoft International, an IT company publicly traded on the Hong Kong Stock Exchange, with China National Software and Services Company Limited (CS&S) as one of its largest shareholders.
Senior government officials and executives from the partner companies attended today’s signing ceremony, including Fan Boyuan, Vice Mayor of Beijing Municipal Government, Xu Qin, Director General of the National Development and Reform Commission (NDRC), Zhang Qi, Director General of the Ministry of Information Industry (MII), and Tong Bao’an, Deputy General Manager of China Electronics Corporation (CEC), Tang Min, Chairperson of CS&S and Chinasoft International, Tim Chen, Microsoft Corporate Vice President and CEO of Greater China Region, Chen Yuhong, Managing Director and President of Chinasoft International, and Liu Dong, Principal Investment Officer and Acting Country Manager of IFC.
The strategic investment will help Chinasoft International further develop its core business capabilities and accelerate its expansion in the international market. It also strengthens the existing strategic partnership forged in November 2003 between Microsoft and CS&S. By combining Microsoft’s advanced technologies with Chinasoft’s rich local resources, the two partners can work closely together to deliver best of breed software and solutions to serve the increasing demand for information technology in the Chinese market and to develop global market opportunities.
“We are delighted to partner with Microsoft, a world IT technology leader and IFC, part of the World Bank,” said Tang Min, Chairperson of CS&S and Chinasoft International. “Today’s strategic investment represents another significant step in the partnership between Chinasoft and Microsoft. The closer cooperation will allow us to take full advantage of Microsoft’s innovative technology and global experience for us to become one of China’s leading software and IT service providers.”
“Microsoft is committed to growing together with China’s software industry,” said Tim Chen, Corporate Vice President and CEO of Microsoft Greater China Region. “Today’s investment is part of our commitment made in the Memorandum of Understanding signed with the National Development and Reform Commission in 2002 to support China’s software industry. We believe that this investment and the ongoing strategic partnership will help Chinasoft, a key software technology and service provider in China, to play an increasingly important role both in China and the world market.”
“IFC is eager to support best-of-breed companies that want to expand and adapt to the global marketplace. IFC’s support for Chinasoft will help it increase its global profile and governance,” said Karin Finkelston, IFC Associate Director for East Asia and the Pacific.
Microsoft and Chinasoft also inaugurated the jointly built Online Lab in today’s ceremony. The Lab will conduct software outsourcing R&D and testing. It will substantially enhance Chinasoft's capabilities to undertake software outsourcing projects and its R&D services capabilities.
The Hina Group acted as U.S. financial advisor and placement agent to Chinasoft in this transaction.
About Chinasoft International Limited
Established in 2000, Chinasoft International is the leading e-government expert and IT outsourcing service provider in the PRC, focusing on the development and provision of e-government solutions and software products. It also provides IT outsourcing, and IT consulting and training services. Dedicated to supplying e-government solutions, it has developed strong IT service abilities, capable of providing clients with a wide variety of high-end services, such as consultation, R&D, tests, maintenance, application and adoption, as well as undertaking outsource of business flow. With extensive experience in areas such as “e-park”, “e-audit” and “e-tobacco”, Chinasoft International serves clients in new high technologies areas in cities including Tianjin, Bejing, Dalian and Harbin. Its clients include the National Audit Office of China and its subsidiary institutions, the State Tobacco Control Bureau and its subsidiary institutions, Xinhua News Agency and other government institutions and state-owned enterprises. Chinasoft International also has a substantial international clientele, making up of well-known enterprises, such as Microsoft, IBM, Motorola, Panasonic and Nortel, which see Chinasoft International as a strategic partner.
About Microsoft
Founded in 1975, Microsoft (Nasdaq: MSFT) is the worldwide leader in software, services and solutions that help people and businesses realize their full potential.
About International Finance Corporation (IFC)
IFC, the private sector arm of the World Bank Group, promotes sustainable private sector investment in developing and transition 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 FY05, IFC has committed more than $49 billion of its own funds and arranged $24 billion in syndications for 3,319 companies in 140 developing countries. For more information, visit
www.ifc.org
.
China is the fifth largest country exposure in IFC’s global portfolio, with active investments of $1.0 outstanding at the end of the last fiscal year. From 1985 when IFC’s first China project was approved to 30 June 2005, IFC has financed $2.2 billion in 100 enterprises in China.
