Agreement with CMBC

16 Oct 2007 07:00

Et-china.com International Holdings16 October 2007 For Immediate Release 16 October 2007 ET-CHINA.COM INTERNATIONAL HOLDINGS LIMITED ("Et-china", "the Group" or "the Company") Launching Co-branded Credit Card with China's Largest Non-State Owned Bank Et-china.com International Holdings Limited, the leading travel services groupin the fast growing region of South China, has agreed a marketing alliance withChina's largest non-state owned bank to launch a co-branded nationwide creditcard. The launch of a co-branded credit card with China Minsheng Banking Corporation*("CMBC") is not only a significant step in raising national awareness of theEt-china brand name, it will also create significant potential additionalbusiness for Et-china's frequent independent traveller ("FIT") activities. It is expected that the co-branded credit cards will be formally launched inlate October, in time for the busy Christmas and Chinese New Year travel andspending season. CMBC currently has 2.7 million credit card users of which 1.2 million are inSouth China where Et-china has a strong presence in business travel. AlthoughCMBC only entered the credit card market in 2005, it is growing very fast withthe help of aggressive marketing. Et-china's "FIT" business will provide nationwide business travel solutions,twenty four hours a day, to all CMBC's banking customers either through thebank's nationwide call centre, which will automatically route all travel relatedcalls to Et-china's call centre, or through calls made direct to the Group'scentre. The co-branded credit cards will naturally raise brand awareness of Et-chinaamongst CMBC's customers but the agreement also enables the Group to sendpromotional material direct mail to customers with their monthly statements aswell as displaying travel services material in the bank's branches. In addition to the launch of the co-branded credit cards for individuals, therewill be tailor-made corporate credit cards, again co-branded, that will be aimedat Et-china's corporate client list. Et-china currently provides flight, hotel,car rental and ancillary services to approximately 200 Chinese based corporateaccounts including Shell China, L'Oreal (China) and Kodak (China). CMBC will be offering customers of the specially designed corporate credit cardsextended settlement terms for business travellers. This will reduce the workingcapital requirements of the Et-china in managing its corporate customers. The Group and CMBC are currently finalising the promotion terms for the cardswhich are expected to include: •free flight delay and general travel insurance; •free travel insurance for package tours; •vehicle roadside emergence services; •double membership points for both Et-china and CMBC membership programmes; and •airport VIP lounge services. Matthew Ng, President and Chief Executive Officer, commented: "Joining forceswith CMBC to launch this credit card is another significant step in raising theGroup's profile, not only in South China but right across the country. The useof credit cards is growing very rapidly in China, and we believe that CMBC islooking to more than double its card customers to over 8 million by next year. "In addition to putting the brand in front of millions of potential customersthrough the cards and promotional activities, this agreement creates apotentially substantial new business stream. In effect we are creating a virtualtravel division for CMBC. Customers telephoning their bank will now have travelservices as one of the options available. Just by pressing a number on theirkeypads the call will be seamlessly directed to us. The impact for our FITbusiness is potentially very significant." *About China Minsheng Banking Corporation (www.cmbc.com.cn, SSE: 600016 CH)CMBC is the largest non-state owned commercial bank in China. It has operationsin 23 cities in China including Beijing, Shanghai, Guangzhou and Shenzhen with287 branches and banking offices. It was listed on the Shanghai Stock Exchangein December 2000 and its total assets were RMB 700.4 billion (£45.7 billion**)with total deposits of RMB 583.3 billion (£38.1 billion) as at the end of 2006.It has won a number of prestigious domestic and international awards includingTop 10 Chinese Enterprise by Forbes Chinese Edition in 2006 and No 2 rankingcommercial bank in China by a competitive report published by the UK BankersMagazine in 2005. **Currency in this release is converted on the basis of GB£1 = RMB 15.3083 - Ends - Contact details for enquiries: Et-china.com International Holdings Limited 0207 067 0700Matthew Ng, President and Chief ExecutiveRanjit Murugason, Chairman Seymour Pierce, Nominated Adviser and Broker 0207 107 8000Mark Percy Weber Shandwick Financial 0207 067 0700Terry GarrettStephanie BadjonatJohn Moriarty This information is provided by RNS The company news service from the London Stock Exchange