Investors Capitalize on Growing Asia Pacific Enterprise Market Through Acquisition of Asia Netcom, a Leading Provider of IP-Based Data Communications Solutions HONG KONG, June 8 /Xinhua-PRNewswire-FirstCall/ -- Asia Netcom today announced that its parent company, China Netcom Group Corporation, has signed an agreement to sell all of its Asia Netcom assets to an Investor Group led by Ashmore Emerging Markets Liquid Investment Portfolio and also including Spinnaker Global Opportunity Fund Limited and Clearwater Capital Partners. Under the terms of the transaction, China Netcom has agreed to sell 100% of the equity of Asia Netcom to the Investor Group. The total offer for the deal is approximately US$402 million. Completion of the deal is conditioned on regulatory approvals. The parties expect the Asia Netcom transaction to close in the second half of this year. This marks another significant telecom investment in Asia made by an investment syndicate led by Ashmore Group, a US$20 billion investment management firm focused on emerging markets globally. During the sales process, Asia Netcom operations will continue uninterrupted and customers, as well as vendors, will not experience any change in service. Asia Netcom's management team and employee base will remain in place to proceed with business-as-usual in providing enterprises and carriers with innovative world-class communications solutions. Since China Netcom purchased the former Asia Global Crossing and launched Asia Netcom in 2003, the company has emerged as a top regional provider of IP- based communications solutions, winning numerous accolades including Frost & Sullivan's 2005 Best Overall Performance Award in the Asia Pacific data services market. "With the anticipated change to our ownership structure, Asia Netcom's business strategy will remain focused on strengthening our foundation, which means combining leading edge MPLS technology with a comprehensive portfolio of end-to-end communications services and network solutions," said Bill Barney, Asia Netcom's President and CEO. "China will continue to be a high priority market as we expand our coverage within Asia Pacific and into key strategic markets internationally." Barney added, "We are committed to maintaining a strong business partnership with China Netcom, as we have done so over the past three years and we fully intend to leverage the existing synergies that we have built through the years, ensuring continued world-class service quality and seamless communication solutions into the mainland." "The Investor Group sees this as an opportunity to build a solid market leader in Asia for next generation communications services, underpinned by a significant asset base across the region. Given the rapid growth of broadband, IPTV, online gaming and other sophisticated applications, the demand for high capacity services in Asia will only go one way -- up," said Matthew J. Burlage, CEO of IRG Limited, the Asian telecom, media and technology investment bank serving as financial advisor to the Investor Group on this transaction. About Asia Netcom Winner of Frost & Sullivan's '2005 Data Communications Service Provider of the Year' award, Asia Netcom operates an extensive telecommunications network infrastructure in the Asia Pacific region, including a privately-owned subsea cable system, EAC, as well as extensive terrestrial backhauls and telehouses in all key Asian markets. Leveraging these strategic assets, Asia Netcom provides a comprehensive portfolio of city-to-city connectivity, data communications and IP-based solutions and services to enterprise, ISP and carrier customers in the Asia Pacific region. The company is headquartered in Hong Kong with local offices in all major Asian markets, the US and Europe. For more information, please visit: http://www.asianetcom.com/ About Ashmore Investment Management London-based Ashmore Investment Management Limited is a specialist emerging market asset manager, with a long-term commitment to emerging countries. Ashmore manages US$20bn for an institutional client base, the largest component of which is pension funds, but which also includes banks, insurance companies, endowments, central banks and other government monies. Ashmore is co-chair of EMTA, the emerging debt self-regulatory body in New York, and is well-known for its constructive approach to investing in sometimes highly complex transactions in emerging companies. About Spinnaker Global Opportunity Fund Spinnaker Capital Group's principal business is Emerging Markets investment management. Its funds invest in all classes of sovereign and corporate securities and related products, across all regions of the Emerging Markets. Spinnaker Global Opportunity Fund, one of three investment funds managed by the group, is a global emerging markets fund focusing on macro investments in credit, equity and local markets, together with event-driven / distressed / special situation investments. About Clearwater Capital Partners Clearwater Capital Partners is an investment firm specializing in the investment of credit and special situations in Asia, ex-Japan. With more than 50 years of collective experience in the Asian credit market, Clearwater has invested in over 129 situations building a diverse portfolio of cash- generative assets with downside protection and upside potential across a variety of countries, industries and positions in the capital structure. Clearwater currently manages approximately US$750 mm and its practices include active involvement in helping management teams turnaround and grow their businesses. Headquartered in New York, Clearwater has offices in Hong Kong, Seoul, Singapore and Mumbai. FOR MORE INFORMATION, CONTACT: Lorain Wong Asia Netcom Tel: +852-2121-2973 Email: DATASOURCE: Asia Netcom CONTACT: Lorain Wong of Asia Netcom, +852-2121-2973, or Web site: http://www.asianetcom.com/

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