SovGEM Limited

SovGEM Limited

November 08, 2005 02:03 ET

SovGEM Limited-Strategic Alliance Agreement

LONDON, UNITED KINGDOM--(CCNMatthews - Nov. 8, 2005) - SovGEM Limited (AIM:SOV)("SovGEM" or "the Company"), the Jersey based emerging market finance house, indicated in its recent interim accounts that it was seeking to widen its network of introducers and thus required revision of its exclusive relationship with Benchmark, a Chinese investment bank.

SovGEM and Benchmark, which is now associated with the New York Global Group (, a New York and Beijing based investment banking and strategic consulting firm, are pleased to announce their extended alliance to continue their working relationship on a non-exclusive basis, and so mutually ending the exclusive contract that was established last year.

New York Global China will continue to introduce investment opportunities in China or in Chinese-related companies to SovGEM.

Commenting on the agreement, Hugh de Lusignan, Chief Executive Officer of SovGEM, said: "China remains a very buoyant investment arena. We are pleased that we have concluded a revised agreement with New York Global. In addition, while our investment landscape broadens, New York Global understands our need to work with a number of key strategic businesses both in China and the rest of Asia.

"Due to our relationship with Benchmark, we have concluded two successful investments in two of Benchmark's China based clients, Bodisen Biotech (AMEX: BBC) and Harbin Electric (OTCBB: HRBN). Both of these investments currently represent significant unrealised gains. We are very optimistic about the opportunities that will arise from working with additional introducers, as well as New York Global."

Nicholas Plant, Head of New York Global China Commented in Beijing: "This year, China Securities Daily highlighted that New York Global Group was the first middle market banking firm from the US to specialize in servicing Chinese small and medium capitalization companies raising capital abroad. New York Global Group is actively developing its strategic alliance with the People's Bank of China, China's Central Bank, in collaborating on research and analysis of small to medium sized private Chinese companies (SMEs) tapping overseas capital markets. With over 6 years of on-the-ground China experience supported by a significant Beijing-based staff consisting of investment bankers, certified accountants and research analysts, New York Global China is in a great position to work with global institutional investors such as SovGEM towards its continued successful investments into many of our profitable China based clients. We are actively working with a number of Chinese companies for our pipeline of deals for 2005 and 2006. We are pleased that SovGEM has done very well through investments into our clients. We look forward to continued investment success together with SovGEM."

Notes to Editors

SovGEM Ltd

SovGEM is an equity finance house that invests in emerging market small and mid cap companies proposing to float on stock markets, particularly in the US and the UK SovGEM joined AIM on 23 November 2004 (stock symbol: SOV).

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