Yangtze Telecom Corp.

Yangtze Telecom Corp.

October 21, 2005 18:03 ET

Yangtze Telecom Announces Significant Evolution of its Credit Management Business

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Oct. 21, 2005) - Yangtze Telecom Corp. (TSX VENTURE:SMS) is pleased to announce the appointment, by China e-Commerce Association, of the Company's subsidiary, China United Telecom Technology (UTT), as the sole authorized agent in the daily operation and development of China Enterprises Credit Safety, Management and Authentication System (CSMAS).

China e-Commerce Association (CECA) is organized and managed by the Ministry of Information and Industry (MII), under the auspices of The State Council of the People's Republic of China after the central government has identified the development of information technology as the cornerstone of the country's industrial policy. The Electronic Signatures Law of People's Republic of China also came into effect during 2005. CECA's mandate is the promotion and development of e-commerce throughout China. CSMAS is part of the service offering of CECA. Its key technology is the "China e-commerce digital certificate" which, consistent with the concept of electronic signature, is the basic ID in a network environment in the information age. Enterprises go through a credit verification process to qualify for an e-commerce digital certificate, which becomes their "China Enterprises Credit Authentication Marker". An impediment to the development of e-commerce in China is trustworthiness and credibility, which brings UTT's efforts in promoting credit management and certification into focus.

"We are very pleased that through discussions in the last few months with MII we are now entrusted with the sole authority to operate the CSMAS in promoting credit awareness and e-commerce to all enterprises in China. We will be the only organization authorized by the government to issue this Credit Authentication Marker, which will become the legal identity of enterprises in an information network. It is gratifying to see the recognition of the work we have commenced in this area of credit verification and certification, and not insignificantly, of the vast membership of 500,000 strong companies in China Enterprises Confederation, with which we are affiliated. In the last three months, we have slowed down the promotion of our Credit Management System in preparation for the inevitable coalescence of the two credit systems," said Kevin He, CEO of UTT.

"The eventual success and convergence of credit verification and e-commerce will open up huge opportunities. One potential application is creating a central database and storage of commercial contracts between consumers and the government such as in the real estate sector or the financial securities industry. The Company will endeavor to begin introducing in the next three months some of the application services under development in CSMAS," said Gary Zou, the new director of Yangtze Telecom, who has been instrumental in discussions with MII leading to the latest breakthrough in the Company's credit initiative.

About Yangtze Telecom Corp.

Yangtze Telecom Corp. provides telecom value-added services for enterprises and consumers in China. The Company is focused on developing and implementing business applications utilizing a combination of SMS platform, the internet and wireless data communication technology. The significant applications developed to date are the Credit Management System and Distance Learning business.

For further information on Yangtze Telecom Corp., please visit the Company's web site at www.yangtzetelecom.com.

The TSX Venture Exchange has not reviewed, and does not accept responsibility for the adequacy or accuracy of, the contents of this press release.

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