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Path:  Corporate Home >> Press Releases >> Corporate and Investor News >> December 10, 2007
Global Sources Signs Agreement to Sell its Equity Interests in HC International, Inc.
– Completion of the Share Sale to Result in a Gain of Approximately US$2.0 Million –
NEW YORK, December 10, 2007 – Global Sources Ltd. (NASDAQ:GSOL) ("Global Sources") announced today that it and its wholly-owned subsidiary, Trade Media Holdings Limited ("Trade Media Holdings"), have entered into a sale and purchase agreement with IDG Technology Venture Investment III, L.P. ("IDG"), pursuant to which Global Sources and Trade Media Holdings, collectively, have agreed to sell to IDG, and IDG has agreed to purchase from Global Sources and Trade Media Holdings, all of Global Sources' and Trade Media Holdings' equity interests in HC International, Inc. (SEHK: 8292) ("HC"), for HK$96.2 million or approximately US$12.3 million.

The total number of HC shares to be sold by Global Sources and Trade Media Holdings amounts to 62,652,000 HC shares, which represents approximately 12.71% of the total issued share capital of HC. The total number of HC shares being sold includes all HC shares previously bought pursuant to the May 2006 agreement with IDG Technology Investment, Inc., as well as additional HC share purchases made by Global Sources and Trade Media Holdings in the open market.

The sale consideration is HK$1.5352 per HC share, or approximately US$0.1968 per HC share, representing a 30% premium to the HC share closing price of HK$1.1800 per HC share, or approximately US$0.1513 per HC share, as of December 7, 2007.

The HC share sale and purchase is scheduled to be completed in December 2007. Upon completion of the HC share sale and purchase, Global Sources and Trade Media Holdings, collectively, will cease to be a substantial shareholder of HC. Global Sources is expected to record a realized gain of approximately US$2.0 million. This figure is the resulting book value after consideration for an impairment charge of approximately US$2.3 million on the company's HC investment, net of US$0.5 million received pursuant to indemnification obligations of the vendor under the purchase agreement for the HC investment, that the company recorded in the second quarter of 2007 and an impairment charge of US$743,000 on its HC investment that the company recorded in the fourth quarter of 2006.

Safe Harbor Statement

This news release contains forward-looking statements within the meaning of Section 27-A of the Securities Act of 1933, as amended and Section 21-E of the Securities Exchange Act of 1934, as amended. The company's actual results could differ materially from those set forth in the forward-looking statements as a result of the risks associated with the company's business, changes in general economic conditions, and changes in the assumptions used in making such forward-looking statements.

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