DFCT D F China Technology (MM)

DF China Technology Common Stock to Trade on OTC Bulletin Board HONG KONG, May 24 /Xinhua-PRNewswire-FirstCall/ -- DF China Technology, Inc. today announced that the Company has received a notification letter from Counsel of Nasdaq Listing Qualifications Hearing stating that following a hearing before a Nasdaq Listing Qualifications Hearing Panel on April 22, 2004, the common stock of DF China Technology will be delisted from the Nasdaq SmallCap Market effective with the open of business on Tuesday, May 25, 2004. The Nasdaq's determination is based on 'the shareholder approval violation and shareholders' equity deficiency.' Nasdaq informed the Company that its securities will be immediately eligible for quotation on the OTC Bulletin Board effective with the open of business on Tuesday, May 25, 2004. The OTC Bulletin Board symbol assigned to the Company is DFCT. No application is required to be filed for inclusion on the OTC Bulletin Board, provided a market maker enters a quote on the first day of eligibility. Nasdaq has included the delisting announcement on the "Daily List" which is available on http://www.otcbb.com/ and to subscribers of http://www.nasdaqtrader.com/ . Shareholders will be able to obtain quotes for DFCT's common stock at http://www.otcbb.com/ or through their broker. DFCT plans to request the Listing Council for a review of the decision made by the Nasdaq Listing Qualifications Panel. The company's common stock will trade on the OTC Bulletin Board pending the outcome of the appeal. No assurance can be made that the review will be successful. "The Board and the management are disappointed with the result of the hearing. The Board and the management believe that the hearing result will not alter company's strategic business development plan." said Dr. Frank Fan, Chairman and Chief Executive Officer of DFCT. "We will continue to proceed with the merger of DFCT and DICHAIN Software. Upon the completion of the merger, we will immediately file initial listing application for Nasdaq SmallCap Market for the new DFCT.' Dr. Fan also stated that 'Regardless of the listing status, after the merger, the new DFCT will be much strongly positioned than before with solid balance sheet and fast growth software and e-commerce business.' About DICHAIN Software DICHAIN Software is a leading IT Application Solution Provider for supply chain management in China. The Company is ranked in top tier by IDC among SAP, Oracle, EXE in China market. DICHAIN Software's DAP platform and solutions have been successfully implemented over 300 clients in China and Hong Kong. The Company's new E-Commerce platform is also showing a very strong customer response both in China and U.S. In the past two years, DICHAIN Software's U.S. GAAP-based financial audit reports indicated high revenue growth and solid profitability. Forward-Looking Statement Disclosure With the exception of historical matters, the matters discussed in this news release are forward-looking statements that involve risks and uncertainty. Forward-looking statements include, but are not limited to, statements relating to the delisting of the Company's stock from Nasdaq, closing of the Company's transaction with DICHAIN Software, development and sales of the Company's products, expected trends and growth in the Company's results of operations, projections concerning the Company's available cash flow and liquidity, anticipated penetration in new and existing markets for the Company's products and the size of such markets, anticipated acceptance of the Company's products by existing and new customers, the ability of the Company to achieve or sustain any growth in sales and revenue and the increase in sales representatives and other personnel. The Company's actual results could differ from such forward-looking statements. There can be no assurance that the Company will achieve the results set forth herein. For further information, please contact: Aaron Zhu Executive Director and Chief Financial Officer DF China Technology +852-2255-0688 DATASOURCE: DF China Technology, Inc. CONTACT: Aaron Zhu, Executive Director and Chief Financial Officer of DF China Technology, +852-2255-0688

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