Asiacontent.com Reports Q3`01 Results

Asiacontent.com Ltd. (Nasdaq: IASIA) (hereinafter “Asiacontent.com” or the
“Company”) has announced unaudited results of operations for the quarter
ended September 30, 2001.  All figures were prepared in accordance with
generally accepted accounting principles in the United States.

 
Q3`01 Results Summary

  * Following the result of the closure of the Company`s Internet Solutions
    operations, starting from Q3`01, the Company`s continuing operations
    principally include the Online Advertising Solutions operations
    (DoubleClick Media Asia and DoubleClick Media Korea, both joint ventures
    with New York based DoubleClick Inc.)

  * Revenue for the period from continuing operations totaled US$2.0 million
    versus US$1.5 million in Q2`01 and US$1.6 million in Q1`01, a QoQ
    increase of 33.4%.  Compared to Q3`00, revenue decreased by 40.5%

  * Gross profit in Q3`01 totaled US$0.5 million compared with US$0.3
    million in Q2`01 and US$0.3 million in Q1`01, a QoQ increase by 88.2%.
    Compared to Q3`00, gross profit decreased by 53.4%

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  * Operating expenses for the period totaled US$4.0 million compared with
    US$4.9 million in Q2`01 and US$4.7 million in Q1`01, a QoQ decrease of
    18.3%.  Operating expenses in Q3`01 contributed 29.4% of YTD operating
    expenses.  Compared to Q3`00, operating expenses decreased by 62.9%

  * Operating losses totaled US$3.5 million in Q3`01 compared with an
    operating loss of US$4.6 million in Q2`01 and US$4.4 million in Q1`01, a
    QoQ decrease of 24.4%.  It also reflected a 63.9% improvement versus an
    operating loss of US$9.6 million in Q3`00

  * Loss from continuing operations amounted to US$3.9 million in Q3`01
    compared with US$4.6 million in Q2`01 and US$4.7 million in Q1`01, a QoQ
    decrease of 15.8%.  It showed a decrease of 60.5% from the loss of
    US$9.8 million in Q3`00

  * Loss from operations of discontinued operation totaled US$1.1 million in
    Q3`01, US$1.9 million in Q2`01 and US$1.8 million in Q1`01.  This loss
    represents the operating results of the Company`s Internet Solutions
    business

  * Loss from disposal of segment of US$5.7 million in Q3`01 represent the
    provision for severance payments and other liabilities arising from the
    shut down of the Company`s Internet Solutions business

  * Net loss totaled US$10.7 million in Q3`01 compared with US$6.5 million
    in Q2`01 and US$6.5 million in Q1`01, a QoQ increase of 65.0%, but a
    decrease of 16.1% compared with US$12.7 million in Q3`00

  * Basic and diluted net loss per share for Q3`01 was US$1.62 based on
    6,608,555 weighted average shares outstanding, compared to losses of
    US$0.98 per share in Q2`01 based on 6,620,021 weighted average shares
    outstanding and US$0.95 per share in Q1`01 based on 6,869,422 weighted
    average shares outstanding

  * End-of-quarter cash balance totaled US$23.9 million including restricted
    cash of US$0.4 million.  In Q3`01, US$12.9 million restricted cash was
    paid to Super Gain Assets Limited and Cityline (Hong Kong) Limited
    pursuant to the terms of litigation settlement

  * Average monthly cash burn rate for Q3`01, excluding non-recurring
    expenses and litigation settlement, was US$0.9 million

 
Business Outlook

  Shut down of Internet Solutions is part of the Company`s strategy to focus
its resources on its market-leading business units, DoubleClick Media Asia and
MTV Asia Online, its joint ventures with DoubleClick Inc., and with MTV
Networks, respectively.  The Company is also further reducing costs in these
business units to bring costs in line with revenues.  With the cash outflow
impact of part of the restructuring costs, the Company`s cash balance as of
November 30, 2001 was approximately US$20 million.  Upon completion of the
overall restructuring, the average monthly burn rate is expected to be reduced
by more than 50% compared with the Q3`01 average monthly burn rate of US$0.9
million.  The Company continues to explore a variety of options to further
reduce the burn rate.


  Operating Highlights

  * Online Advertising Solutions

  The Company`s joint venture with DoubleClick Inc. delivers targeted online
advertising solutions through its DoubleClick Media Asia advertising network
(“DoubleClick”).  As a result of the spin off and shut down of the Internet
Solutions business, the Company`s Online Advertising Solutions business
remains one of its principal operations.
 
DoubleClick offers two networks—its Brand Network leverages premium
branded sites with well-known, high-quality content to deliver brand
advertising and promotions for Asian marketers and its Audience Network
provides mass scale reach with targeting and optimization tools.  The networks
provide marketers with branding as well as direct marketing and e-mail
advertising services.  Started in 1999, DoubleClick operates across the major
advertising markets in non-Japan Asia, including China, Korea, Hong Kong,
Taiwan and Singapore.
 
A restructuring of the DoubleClick regional headquarters and five sales
offices across the region in Q3`01 resulted in a 24% reduction in headcount
and a greater percentage of headcount engaged directly in sales.
 
DoubleClick gained market share in Q3`01 as several competitors exited the
market.  As a result, DoubleClick is experiencing less competition in
recruiting key web sites into its Brand and Audience networks.  In addition,
the Company has negotiated revenue share levels that will allow it to increase
its gross profit margins.
 
  During Q3`01, DoubleClick continued to build its e-mail network of opt-in
email lists and by close of Q3`01 had 80 lists under contract.  The Company
anticipates email revenue growth in Q4`01 and 2002.


  * Joint Venture with MTV

  The Company operates Asia Online Entertainment Limited, an online joint
venture with MTV BVI Inc., an affiliate of MTV Network.  The joint venture`s
online sites publish news and information that target MTV Asia`s audience and
complement the MTV Asia television program services.  The sites are also
highly interactive, providing a program of games, contests and promotions, and
a video library which includes Asian music selections in all markets.
  The Company restructured this business during 2001.  Restructuring
primarily involved the centralization of operations into Singapore, where the
joint venture operations are co-located with the regional headquarter of MTV
Networks Asia.  This centralization will be completed in early 2002 and is
expected to result in significant costs savings as well as business
development synergies.

 
* Internet Solutions

  On October 10, 2001 the Company announced the spin off of its Internet
Solutions operations in Korea and Taiwan and the shut down of its Internet
Solutions operations in Singapore, Hong Kong and China.  The Company will
retain 15% equity interests in the spun-off Korea and Taiwan entities.
Documentation relating to the spin-offs is expected to be completed within the
next few weeks.
 
A provision of US$5.7 million has been made for legal and professional
fees, employee severance payments, penalties arising from termination of
business and non-business related contracts, impairment losses of assets of
the Internet Solutions operation and other potential liabilities and
transaction costs relating to the shut down and the spin-offs.
 
YTD Q3`01 revenues from the Internet Solutions business units totaled
US$5.1 million, which produced gross profit of US$1.5 million.  YTD Q3`01
operating loss for the units totaled US$4.8 million.

 
The statements included above and elsewhere in this news release that are
not historical in nature are “forward-looking statements” within the meaning
of the “safe harbor” provisions of the Private Securities Litigation Reform
Act of 1995.  Asiacontent.com cautions readers that forward-looking statements
are based on Asiacontent.com`s current expectations and views of future events
and involve significant risks and uncertainties.  Actual results may differ
materially from those expressed or implied by such forward-looking statements.
Risks that could cause the Company`s actual results to differ materially from
such forward-looking statements, include but are not limited to, a failure to
substantially increase the clients of our Online Advertising Solutions
business, a failure to significantly increase advertising commitments, the
failure of Online Advertising Solutions clients to meet their commitments, the
launch of new lines or termination of existing lines of business, and further
acquisitions or divestments.  More detailed information as to the factors that
could cause actual results to vary can be found in the public filing made by
the Company with the United States Securities and Exchange Commission and in
press releases issued by the Company from time to time.  The forward-looking
statements in this press release relate only to events or information as of
the date on which the statements are made.  The Company undertakes no
obligation to update any forward-looking statement to reflect events or
circumstances after the date on which the statement is made or to reflect the
occurrence of unanticipated events.

 
Company Information
  Asiacontent.com (Nasdaq: IASIA) (www.corp.asiacontent.com )
delivers targeted online advertising solutions through its DoubleClick Media
Asia advertising network in Korea, China, Hong Kong, Taiwan and Singapore.  In
partnership with MTV Networks, Asiacontent.com produces local-language music
news, information and promotions targeting high-value youth in Korea, China,
Taiwan, Southeast Asia and India.

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