Motorola Makes Further Investment in DVN (Holdings)

Motorola Makes Further Investment in DVN (Holdings) DVN's 2004 Set Top Box Sales Increase Over Six Times HONG KONG, Jan. 16 /Xinhua-PRNewswire-FirstCall/ -- DVN (Holdings) Limited (''DVN,'' HKSE stock code: 0500) announced today that a subsidiary of Motorola (NYSE:MOT) has invested an additional US$7.5 million into DVN. Motorola had already invested US$7.5 million in June 2004 and has an option to invest an additional US$18 million. Net proceeds from Motorola's investment will be used for research and development, particularly for application software and services; and for working capital. Mr. Terry Lui, DVN's Chief Executive Officer, ''DVN and Motorola are cooperating very well in a number of areas as reflected by the increased investment. By working together, DVN and Motorola will be able to capitalize on each company's respective strengths, and hence accelerate the deployment of set top boxes in China.'' With video, internet, and telecoms beginning to converge around the world, Motorola with its strengths in broadband and hardware; and DVN with its presence in China and strengths in application software for the China market, will be able to provide the technology to facilitate this convergence in China. For 2004, DVN's set top box sales have increased rapidly, with DVN's STB unit sales rising over six times to over 240,000 STBs, compared to 35,515 in 2003. DVN believes that the digital cable market is about to expand rapidly as China's State Administration for Radio Film and Television ("SARFT") has announced plans to migrate 30 million cable subscribers to digital within the next several years, with the analog service to be completely cutoff by 2015. There are currently over 100 million cable TV subscribers in China. About DVN DVN (Holdings) Limited (''DVN'') is a leading media technology company specializing in the development of digital broadcast platforms for cable pay TV operators in China. DVN provides an end to end solution ranging from providing television station headend equipment and set top boxes to providing middleware, application software and related value added services. Currently, most of DVN's revenues are generated from the sales of set top boxes, but anticipates substantial future revenues from its contracts to share in revenues generated from value added services such as interactive advertising, home shopping, and gaming. DVN has so far already installed over 20 digital broadcasting systems in more than 10 municipalities and provinces in the PRC. Based in Hong Kong and listed on the Hong Kong Stock Exchange in 1989, DVN has been operating in the technology sector since 1982. For further information, please contact: DVN (HOLDINGS) LTD Sam Wong or Susanna Chiu Tel: +852-2585-7295 Fax: +852-2511-5522 Email: samwong@dvnholdings.com Web: http://www.dvnholdings.com/ Source: DVN (Holdings) Limited CONTACT: Sam Wong or Susanna Chiu of DVN (HOLDINGS) LTD, +852-2585-7295, or fax, +852-2511-5522, or samwong@dvnholdings.com Web Site: http://www.dvnholdings.com/ ------- Profile: International Entertainment