China Private Equity Investment Holdings Limited (''CPE'' or the ''Company'') is a British Virgin Islands incorporated company, which has been established to invest in small to medium-sized high growth companies operating principally in Greater China.

On 8 September 2008, the Company, through its wholly owned subsidiary CPE TMT Holdings Limited, acquired a significant stake in Fortel Technology Holdings Limited ("Fortel") in exchange for the issue of 9,154,384 Ordinary Shares in the Company representing a value of approximately £10.1 miilion (equivalent to approximately US$19 million at that time). Fortel is a platform provider for online content distribution in China. Fortel has developed an integrated content distribution platform - Fortel Online Content Utility System (''FOCUS'') - that provides a one-stop solution for both content providers and consumers to sell and purchase premium digital content in China. FOCUS provides the infrastructure for content providers to deliver their content to their customers by integrating content servers, payment collection and settlement interfaces, customer information databases, metering and billing services and network security services. It also provides integrated sales, information, operations support, and customer services portals. Content is distributed to consumers through the company's web portal: www.contentchina.com. The Company's investing strategy is to provide Shareholders with an attractive return on their investment through capital appreciation, by investing in businesses in China which the Directors believe are likely to achieve a trade sale or an IPO, predominantly within a medium to long term time horizon.

The Company will be an active investor and will adhere to the following investment guidelines:

Sector focus: Initially the Company will focus on telecommunications, media, technology (''TMT'') and financial services. However, the Company will also consider attractive high growth opportunities outside of these sectors.

Target returns: CPE will seek to make investments with the aim of generating an internal rate of return of at least 30 per cent.

Leverage: The Company does not envisage that it will use long term debt to finance its portfolio. Type of company: The Company's investments will be spread across a broad range of assets. Where possible, the Company will target early to expansion stage businesses which have technological and/or operational synergies with companies within the Company's portfolio at that time. The Company intends to invest primarily in unlisted companies. However, the Company will also invest in listed companies in certain circumstances. Such circumstances may include companies which are seeking a management buyout, undergoing a restructuring process or considering some other form of corporate activity. The companies in which CPE invests, whether listed or unlisted, are likely to demonstrate one or more of the following characteristics: first mover advantage; undervalued assets; proprietary technologies; and distribution channels to Chinese consumers.

Spread of investments: Other than the Company's investment in Fortel it will not invest (or commit to invest) more than 20 per cent. of the gross assets in a single investment without the Board's prior approval.

Exit: With the exception of a limited number of strategic investments, the Company will focus on opportunities with a medium to long term investment horizon with the aim of achieving an exit through a trade sale or an IPO.

To the extent the Company has not made an investment, other than Fortel, in accordance with its investing policy within 12 months of Admission, the Company will return the net remaining proceeds from the Subscription to Shareholders. Save in the case of exceptional or unforeseen circumstances, the Directors do not intend to propose any change to the Company's investing policy.

The Board is chaired by Patrick Macdougall (formerly chairman and chief executive of West Merchant Bank and group executive director of Jardine Matheson Holdings and Standard Chartered plc), and also includes Chau Vinh Heng (Managing Director of C.K. Grandfield (Holdings) Limited), Duncan Chui Tak Keung (Chief Executive Officer of CPE, founder and president of Fortel Group and chairman of Sino Katalytics Investment Corporation), Ernest Wong Yiu Kit (Chief Financial Officer of CPE), John Croft and Hanson Cheah (co-founder of AsiaTech Ventures).

Listing exchange: AIM

Expected first day of trading: 2009-10-15

Expected money raised: £3m Approx.