ADAM.L Regulatory News (ADAM)

CPEH.L 

China Private Equity Investments Holdings Limited

("CPE" or the "Company")

The Company's principal activity is to invest in unlisted companies in the telecommunications, media, and technology sectors ("TMT")

Strategic investment in major online education market

The Board of CPE is pleased to announce that the Company has entered into an agreement to acquire a 40% interest in Beijing based China iEducation Group for a total consideration of US$2 million.

This is a strategic investment for the Company as the members of China iEducation Group have worked in close partnership with the Ministry of Education for the past 10 years. During this period they have developed and distributed digital education content to elementary and middle schools, and built up a network of approximately 30 million student users and 3 million teachers, within a market that receives substantial annual funding from the Chinese Government to upgrade education resources. China iEducation Group generated revenues of approximately $1 million in 2009. The business has been profitable since 2008.

Of the total investment consideration, US$1 million is being used to acquire existing ordinary shares. The Company will then assist founder and CEO Mr Peter Mo to re-organise the business under a new corporate structure with a BVI holding company to be named China iEducation Holdings Limited ("China iEducation"), with administrative headquarters in Hong Kong. Once the reorganisation is complete, CPE will subscribe for US$1 million of new shares in China iEducation. The new funds will be used as expansion capital for promoting China iEducation's services, with the aim to create an online social education network. As a result of the issue of new shares, CPE will own 40% of the increased share capital of China iEducation. The consideration will paid out of the Company's existing cash resources.

Duncan Chui, CPE's CEO commented:-

"I am delighted to make this announcement as it endorses our investment strategy of private equity investments into the Chinese TMT sector, which is fast becoming one of the world's largest markets with surging internet and mobile user bases.

We have significant sector knowledge underpinned by a local presence and, as a result, are very well positioned to capitalise on the current phase of state ownership transferrals into the private sector. We are particularly excited about China iEducation's access to over 30 million students in China and are impressed by their track record in building their reputation as a leading education software and services company in China.

With our Fortel investment also scheduled for an IPO on the Hong Kong Stock Exchange next year, underpinned by the wider Chinese economy growing at over 8% per annum, we are primed for good growth in the years ahead and I look forward to reporting further progress in due course."

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