Yangtze Telecom Corp.
TSX VENTURE : SMS

Yangtze Telecom Corp.

January 20, 2006 19:42 ET

Yangtze Telecom Closes $2.7 Million Private Placement

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Jan. 20, 2006) - Yangtze Telecom Corp. (TSX VENTURE:SMS) is pleased to announce that it has now closed its previously announced non-brokered private placement of 15 million shares at a price of 18 cents per share, for proceeds of $2.7 million. The shares are subject to a hold period and may not be traded in British Columbia until May 21, 2006, except as permitted by the Securities Act (British Columbia), and the rules made thereunder and by the TSX Venture Exchange. Proceeds of the private placement will be used to increase Yangtze's ownership of its 65%-owned subsidiary, China United Telecom Technology Company Ltd. ("UTT"), to further develop the Credit Management Services business and Distance Learning business of UTT, as well as a reserve for future acquisitions.

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 satellite platform, the internet and wireless data communication technology. The significant applications developed to date are the Credit Management System and Distance Learning business.

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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