e-commerce Logistics partners with Guangzhou company to develop
supply chain management and sales logistics solutions for the Pearl River Delta

(Hong Kong, February 18, 2003) e-commerce Logistics Group (ecL), one of Hong Kong's leading e-logistics providers, has agreed to collaborate with Guangzhou's leading retail distribution company, the Huaxin Group (Huaxin) to modernize the latter's distribution capabilities.

Based on ecL's award winning Warehouse Management System (WMS), the two companies have agreed to develop an e-platform for Huaxin to support its logistics services in the Pearl River Delta. The e-platform project involves a total investment of RMB50 million and will take three years to complete. It is one of the twelve key projects recently announced by the municipal government of Guangzhou for 2003.

Mr. Simon Hsu, Chairman and Chief Executive Officer of ecL, believes that Hong Kong's logistics infrastructure and capabilities are the corner stone for servicing the import and export sectors across southern China. He considers it a logical step for Hong Kong based logistics providers to partner with players in the PRD.

Mr. Hsu said: "We expect business and investment opportunities in supply chain management services to grow rapidly over the next few years in the PRD, much in the same way as the manufacturing sector grew in the 1980's. The SAR and Guangdong Governments are becoming more proactive in transforming their cities into regional logistics hubs and enhancing the economic integration of the Pearl River Delta."

The Warehouse Management System for Logistics Industry developed by ecL today won the first place Application Gold Award in the IT Excellence Awards 2002 organized by the Hong Kong Computer Society and sponsored by the Government of HKSAR.

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About e-commerce Logistics Group

About Huaxin Group
Huaxin, founded in 1985, is a leading retail distribution group in southern China distributing to over 3,000 outlets. The group manages over 200 international and domestic brands in beverage, food, household, wine, electrical appliances, shoes and clothing categories. It operates over 2 million square feet of warehousing facilities in the Pearl River Delta with handling capacity up to 400,000 pieces everyday.