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Media Giant Bertelsmann Acquired Majority Stake in Rongshu,

China eCapital Advised the Transaction

Bertelsmann China Holding announced its acquisition of 65% of Rongshuxia Computer Co., Ltd. on February 24, 2002. This marks the first time a global media giant acquired a controlling stake in a well-known online content provider in China. China eCapital Corporation advised Rongshuxia in this transaction.

Rongshuxia is the world's largest aggregator and publisher of literature in Chinese language. By working closely with offline publishers, the company has published over 70 books and provided over 10,000 essays to print media. Leveraging off its vast pool of original content, it has also produced over 2,200 hours of radio programs and participated in the development of over 120 television series. Bertelsmann is one of the world's largest media companies with its businesses encompassing publishing, broadcasting, printing and media product distribution. Its sales exceeded Euro 20 billion in 2001.

China eCapital Corporation is a leading investment bank focusing on the telecom, media and technology sector in China.