AdSociety Signs Exclusive Deal with US-based VideoBanner.com  

To Deliver Audio & Video Advertising Solutions Across Asia

Hong Kong, July 30, 2001 - AdSociety, the first pan-Asian broadband advertising, marketing, and sales network, and a majority-owned joint venture of PCCW (SEHK: 0008, NYSE: PCW [ADR]) has signed a pan-Asian exclusive sales partnership and reseller agreement with California-based VideoBanner.com for the delivery of unique rich media advertising solutions to advertisers across Asia.

Also participating in this partnership is TSC Capital Group, based in Taiwan, which is an investor in VideoBanner and is providing management, logistical and financial support to VideoBanner.com.

Under the agreement, AdSociety will have sole rights within Asia to sell and distribute AudioBanner™, VideoBanner™, and QuickMediaMail™ brand services that deliver streaming audio and video with no plug-ins as part of banner ads, sponsorships, permission-based emails and other online promotions. VideoBanner’s patent-pending technology is unique within the industry on account of its micro-thin player, which is only 8.8kB making it the smallest video player in the world. VideoBanner’s technology includes instant bandwidth detection, and can stream video to 95% of desktops around the world, from dial-up to broadband.

“Our agreement between VideoBanner and TSC Capital Group will enable our customers in Asia to deliver video ads to tens of millions of people over the Internet within every major Asian market. VideoBanner.com's products and services will enable traditional advertisers with radio and television ad budgets to deliver audio and video advertisements to virtually every Internet user, from dial-up to broadband in a manner that is instant, user-friendly, targeted and cost effective,” said Miriam Tong, Senior Vice President, Corporate Development, Business Development Group, AdSociety.

"We’re excited to have enlisted AdSociety as our exclusive sales partner within Asia.  AdSociety has a leading presence in the five largest Asian markets.  As these markets continue to grow, we believe video will become central to all online advertising and we see the partnership between AdSociety, VideoBanner and TSC Capital Group as crucial to this growth" said Erik Simon, Vice President of Business Development for VideoBanner.com

Market research conducted by VideoBanner has shown that streaming audio and video can increase click-through rates by as much as 280% over traditional banner ads.

VideoBanner's key product offerings include the AudioBanner™, VideoBanner™ and QuickMediaMail™. AudioBanner and VideoBanner services deliver streaming audio and video advertisements embedded within banner ads without requiring any plug-ins.  QuickMediaMail delivers streaming audio and video advertisements embedded directly within emails as part of permission-based email campaigns.  QuickMediaMail enables video commercials, trailers and other advertisements to be streamed to every major email client including Outlook2000, OutlookExpress, Eudora, Netscape Mail, HotMail, Yahoo! Mail and many others.

VideoBanner technology has been used within the United States by companies such as British Airways, IBM, Unilever, Twentieth Century Fox, Universal Studios, New Line Cinema, as well as by musicians to the likes of Mariah Carey, NSYNC and Christina Aguilera.

The Agreement between AdSociety and VideoBanner will enable the two companies to jointly promote the benefits of Video and Audio-based online advertising throughout Asia.

About AdSociety

AdSociety, a majority-owned joint venture of PCCW (SEHK: 0008, NYSE: PCW [ADR]), is the first pan-Asian broadband and wireless advertising, marketing and sales network.  AdSociety currently provides advertising, marketing and sales services to PCCW-related companies as well as pioneering online, broadband and wireless marketing solutions and services to marketers and to over 1,300 member websites.

Headquartered in Hong Kong, AdSociety has offices and joint ventures established in Beijing, Seoul, Shanghai, Singapore, Sydney, Taipei, Tokyo and New York City and currently employs over 120 media professionals with a proven track record in pioneering advertising sales for broadcast television and the Internet in Asia.

AdSociety's joint venture and strategic partners include Tokyu Agency Inc. (a Tokyu Group company and affiliate of the Tokyu Corp [TSE : 9005]),  LG Advertising [SEO : 35000] (a LG Group company),  Cyber Communications Inc. (a joint venture between Dentsu Inc. and SOFTBANK Corp. [TSE : 9984]),  L90 [NASDAQ : LNTY],  Interactive Media ContentSuite AG (a Axel Springer Verlag company [DE : 550135]),  SkyGo Inc. (a Vanguard Investee),  E-Book Systems Inc. (a Creative Technology [NASDAQ : CREAF] Investee),  AdClick (a KT Internet company,  an affiliate of Korea Telecom [NYSE : KTC]),  e-Brilliant (a Brilliant Digital Entertainment Inc. company [AMEX : BDE]),  Media Genesis (an IconMediaLab company [STO : ICON.ST]), Australia Media Holdings (a SportsWorld company [LSE : SWD.L])  and  B2BWorks.  More information on AdSociety can be found at www.AdSociety.com.

About VideoBanner.com

VideoBanner.com offers a complete range of products and services for rich media advertising. Using an intelligent delivery infrastructure in combination with patent-pending streaming technology, VideoBanner.com's services include the creation, hosting and delivery of rich media content within banners, emails and other advertising environments.

About TSC Capital Group

TSC Capital Group is a leading venture capital and technology distribution firm based out of Hsinchu, Taiwan. The firm is backed by well-connected corporate executives, financial institutions, and technology conglomerates, throughout Greater China and the United States. TSC Ventures, the venture arm of the firm, has an extensive portfolio consisting of several firms producing leading edge products in various sectors. The distribution arm of the firm, TSC Technologies, leverages TSC's close relationships with both corporations and governments throughout the Greater China (China, HK, Taiwan) region to help clients sell into this growing region.

For further information, please contact:

Samantha Chan                                                                    

Director of Corporate Communications

AdSociety Limited

Tel: +852 2509 2236                                                                

Email: Samantha.chan@adsociety.com      

Desiree Lim/Susanna Muk                                                    

Ogilvy PR Worldwide

Tel: +852-2884-8248/2884-8584                                               

Email: Desiree.lim@ogilvy.com/Susanna.muk@ogilvy.com

Stacy Franklyn                                                           

Publicity Manager

VideoBanner

Tel:  +310-207-5655                                                          

Email: stacy@videobanner.com

Tony Lin                                                  

TSC Capital Group

Vice President of Marketing

Tel:  +886-2-2708-4300                                                        

Email:  tony@tscventures.com