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China Cable & Communication Issues a Letter to Its Shareholders

Posted on: Monday, 29 March 2004, 06:00 CST

BEIJING, March 29 /PRNewswire-FirstCall/ -- China Cable and Communication, Inc. (BULLETIN BOARD: CCCI) , a leading China-based cable TV company, today announced it has issued the following letter to its shareholders.

A Letter to our Shareholders

From Gareth Tang, President

China Cable and Communication, Inc. (BULLETIN BOARD: CCCI)

March 29, 2004

Fellow Shareholders,

This is an exciting time to be part of China Cable and Communication,

Inc. I am proud to report that your management team is executing its

business plan in all core areas of our business. Most importantly we're

pursuing our important, ongoing acquisition activities. China Cable and

Communication is well-positioned to capitalize on the growing market for

cable and telecommunication markets in China.

Your entire management team is dedicated to making China Cable and

Communication a success and I hope that this corporate update will

provide all of our shareholders as well as the investment community with

continued confidence that China Cable is proceeding in executing its

business plans, which we are hopeful will be positively noticed by

investors, shareholders and the financial community.

CHINA CABLE AND COMMUNICATION SNAPSHOT:

I. Revenue of the Baoding joint venture, of which China Cable and

Communication owns 49%, is forecasted by the Baoding joint venture in

January 2004 to grow from $4.64 million in 2003 to $7.78 million in 2004,

representing a 68% increase from 2003. This does not take into

consideration any revenues from current and anticipated acquisitions.

Effective January 1, 2004, China Cable and Communication intends to

consolidate the accounts of the Baoding joint venture. This consolidation

is as a result of China Cable's control of the Board of Directors of the

joint venture beginning on January 1, 2004.

1. Our Baoding joint venture saw an increase in both revenue and net

profits for 2003, which will be reflected in our 10-K which we

anticipate will be filed by mid-April.

2. We recently announced that our 49%-owned Baoding joint venture

has entered into a joint venture agreement with a major Chinese

Telecom company for the providing of Internet Protocol Telephony

Services (IP Telephony) in Baoding City, which is located

approximately 85 miles south of Beijing. We anticipate starting

to generate revenue from this joint venture in June 2004.

3. I am pleased to report that sales of set top cable boxes by the

Baoding joint venture to customers of the Baoding Network for the

first three months of 2004 are close to 20,000 units,

corresponding to over $1 million in revenue. China Cable and

Communication has a 49% interest in the joint venture. As stated

above, China Cable and Communication intends to consolidate the

accounts of the Baoding joint venture and its revenue beginning

as of January 1, 2004. The revenue from sale of the set top cable

boxes has been included in the $7.78 million forecasted revenue

for 2004.

II. As the only foreign publicly traded company approved by the central

government to own interests in Chinese cable systems, we remain committed

to growing our company through acquisitions. As part of this aggressive

strategy, we are currently exploring an opportunity to own fiber optic

cables between major Chinese cities and Hong Kong.

Senior members of your management team have plans to visit the United

States in the very near future. This will enable us to meet with existing

shareholders and most importantly the investment community. We also look

forward to continuing to share our progress with you, our shareholders

and potential investors.

All of your management team has a major stake in the performance of the

Company's shares. We all expect superior market performance from our

company.

I want to personally assure all our shareholders that we believe that we

are on a strong path to growth, and we are committed to delivering

ongoing positive results. We are convinced that 2004 will be a very

exciting year for China Cable and Communication and we are just as

convinced that we can count on you for your continued support.

Sincerely,

Gareth Tang

President

About China Cable and Communication

China Cable and Communication, Inc. is a China-based cable TV company. Through its British Virgin Island subsidiary, the Company is the first foreign company to own and operate a cable television network in China.

Located 85 miles south of Beijing, the network currently offers 39 channels within the Baoding city limits and eight additional channels to outer areas in the Baoding metropolitan area. It transmits in both analog and digital over its fiber optic network and through 22 substations. With its fiber optic network, Baoding network is capable of transmitting 37 analog television programs, six digital signals and one FM music program. In addition to its cable television transmission services, Baoding network offers Internet access and value added services, such as broadband Internet access and on- demand services through our proprietary set-top boxes.

China Cable and Communication is well positioned as a foreign investor approved by The State Administration of Radio, Film and Television ("SARFT"), China's national regulatory authority for the broadcasting industry, to own interests in and provide operational management support to cable television networks in the People's Republic of China (PRC). The SARFT approval together with the trading of CCCI's common stock in the US, provide CCCI with a favorable advantage in access to foreign capital. China Cable and Communication, Inc. trades in the United States, under the ticker symbol CCCI, in order to provide U.S. investors with the opportunity to invest in a company that own interests in a PRC cable television network. For more information, please visit http://www.chinacable.us/.

CONTACTS:

George Raney

Executive Director of China Cable & Communication, Inc.

Tel. 1-310-301-0082

Dara Podber

Managing Director of Friedland Capital Inc.

Tel. 1-201-420-7437

(Friedland Capital Inc. is the US Corporate Finance Advisor to

ChinaCable & Communication, Inc.)

The forward-looking statements contained herein are subject to certain risks and uncertainties that could cause actual results to differ materially from those reflected in the forward-looking statements. Some of these include, but are not limited to, our availability of capital, political occurrences and events in China, the terms of our 8% convertible preferred stock, operations of the Boading joint venture, demand for the products of the Boading joint venture, the economy of China, and other factors. Readers are cautioned not to place undue reliance on these forward-looking statements, which reflect management's analysis only as of the date hereof. The company undertakes no obligation to publicly revise these forward-looking statements to reflect events or circumstances that arise after the date thereof. Readers should carefully review the risks described in other documents the company files from time to time with the Securities and Exchange Commission, including Amendment No. 1 to the Form SB-2 registration statement filed with the Securities and Exchange Commission on December 8, 2003, the Annual Report on Form 10-KSB for the fiscal year ended October 31, 2002, as well as the Quarterly Reports and Current Reports on Form 8-K by the company.

China Cable & Communication, Inc.

CONTACT: George Raney, Executive Director of China Cable &Communication, Inc., +1-310-301-0082; Dara Podber, Managing Director ofFriedland Capital Inc., +1-201-420-7437

Web site: http://www.chinacable.us/

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