SOURCE: The Hartcourt Companies, Inc.

November 30, 2006 06:30 ET

Hartcourt Announces Selling Its Full 90% Equity Interest in Control Tech to Great Focus Holdings Ltd.

SHANGHAI, CHINA -- (MARKET WIRE) -- November 30, 2006 -- The Hartcourt Companies, Inc. (OTCBB: HRCT) (FRANKFURT: 900009) today announced that it (the "Company") has signed a definitive Sales & Purchase agreement with Great Focus Holdings Limited to sell the Company's entire equity interest in Control Tech Electronics (Shanghai) Co., Ltd ("Control Tech"), the key distributor of Radvision in China before April 2005. The net proceeds from the sale will be US$400,000 payable in cash by February 28, 2007. Upon the completion of disposal, Control Tech will cease to be a subsidiary of the Company.

The Company agreed to acquire Control Tech in November 2004 and the acquisition was completed in February 2005. However, Control Tech did not generate the expected revenue and net profit over the last year.

In mid-2006, the Company announced its intention to broaden its business lines by expanding into the vocational training/education market in China. In light of this change in focus and the disappointing results from Control Tech, the Company believes that selling Control Tech will provide needed financial resources for the Company to further its expansion into vocational training/education market and allow management to focus on this new line of business.

About Hartcourt

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Forward-looking statements

The statements made in this press release, which are not historical facts, contain certain forward-looking statements concerning potential developments affecting the business, prospects, financial condition and other aspects of the company to which this release pertains. Forward-looking statements are identified by words such as "expects," "believes," "anticipates," and words of similar import. The actual results of the specific items described in this release, and the company's operations generally, may differ materially from what is projected in such forward-looking statements. Although such statements are based upon the best judgments of management of the company as of the date of this release, significant deviations in magnitude, timing and other factors may result from business risks and uncertainties including, without limitation, the company's dependence on third parties, general market and economic conditions, technical factors, the availability of outside capital, receipt of revenues and other factors, including those risks identified in the company's filings with the U.S. Securities and Exchange Commission, many of which are beyond the control of the company. The company disclaims any obligation to update information contained in any forward-looking statement.

Contact Information

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    Ms Tingting Ni
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