City Network (CSN) a company that designs, manufactures and markets a comprehensive line of broadband and wireless Internet access solutions and consumer electronic products announced that one of its cooperative ventures and subsidiary companies, Beijing Putian Hexin, has successfully obtained ADSL modem supplier agreements with two of China's largest telecommunications companies: China Telecom (CHA) and China Network Communication Corporation.

City Network's joint venture subsidiary, Beijing Putian Hexin, has now received certifications from both local and national governments in China qualifying it to provide internet broadband and networking equipment to numerous state-owned telecom companies. City Network, through Beijing Putian Hexin, has already successfully supplied more than 300,000 units of ADSL modems to China Telecom Co. and to China Network Communication Corp. since July 2003, which has generated over US$7 million in total revenues. Beijing Putian Hexin has also shipped over 60,000 ADSL modems to the Hainan Island Provincial Telecom Corporation this past year and has also secured orders from Hainan Telecom for 2005.

In addition, City Network has recently obtained certifications from various provincial governments, which qualify the Company to become the supplier of internet networking equipment to numerous large-scale local telecommunication companies in certain Chinese provinces. These provinces include Shanxi, Guangxi and the Xiamen Special Economic Zone among others.

The Company is also pleased to announce that Beijing Putian Hexin was listed in the prestigious "Top 10 Excellent Vendors" of ADSL networking products in China by Beijing CCID Media Investments Co.

"We feel City Network and our Chinese subsidiary Beijing Putian Hexin are like new stars in the China broadband communications market," exclaimed President Andy Lai. "We believe that we have done an excellent job surpassing even our biggest competitors in China such as ZTE and Hua Wei in obtaining certain business orders. In the coming year, we plan to continue to expand our business to markets throughout Asia, the Middle East and South America."