Board of DF China Technology Authorize Acquisition of Two High Technology Companies in China HONG KONG, Dec. 14 /Xinhua-PRNewswire-FirstCall/ -- DF China Technology Inc. (OTC:DFCT) (BULLETIN BOARD: DFCT) ("the Company") announced today that its board of Directors, at the meeting of Directors held in Hong Kong, has authorized the acquisition of two separate high technology companies. The acquisitions are subject to due diligence and the entering into definitive agreements with the companies. The first company, DiChain Sky Digital Co. Ltd. ("DSD") would be acquired from the Company's parent firm, China Merchants DiChain Group, for cash and shares in exchange for 100% of the common stock of DSD. The second company, China Trader, Inc. ("CTI"), would be acquired from a third party for cash, in exchange for 100% of the common stock of CTI. Dr. Frank Fan, Chairman and CEO of DF China Technology Inc. commented, "The two proposed acquisitions reflect our Company's new vision and strategy to become one of the top Chinese information technology companies that are listed in the US Capital Markets.' Dr. Fan continued, "The Company will sign the memorandum of understanding with the two targets and our acquisition team has already commenced the due diligence process.' DSD, which was founded earlier this year by China Merchants DiChain Group, is mainly engaged in designing, developing, operating and marketing mobile network games and mobile-internet service applications based on its proprietary mobile application platform. The Company has developed over 30 mobile gaming products and has now begun to market the product. In addition to mobile gaming development, the Company plans to develop more commercial applications for mobile-internet services. CTI recently become one of the leading supply-chain e-Commerce services providers in China. CTI provides international trading information and related services to its corporate members via its vertically-integrated information exchange platform. Currently, the company has over 50,000 corporate members who have been actively using the services and infrastructure to conduct their trading business. About DF China Technology Inc. DF China Technology Inc. designs, manufactures and sells customizable software and hardware systems, which integrate GIS (Geographic Information System), GPS (Global Positioning System), as well as Wireless and Web technologies into a proprietary application platform. The Company's subsidiary, DiChain Software, was recognized as one of the leading IT solution providers in logistics and supply chain management in China in 2002 and 2003 by International Data Corporation, a world leading IT consulting firm, and named the 'Best Value Added Reseller' by its strategic industry partner IBM Corp. in 2003. DiChain Software has strategic alliances with some of the world's largest companies, including IBM, GE, Oracle, Hewlett Packard, ILOG, DELL, Motorola, and China Mobile. The Company's leading industry position is further leveraged by its relationship to China Merchants DiChain Holdings Ltd, the Company's major shareholder who is a reputable member of China Merchants Group, one of the top 50 national enterprises in the PRC with over US$30 billion assets under its management. In the future, the Company aims to be one of the leading Chinese technology companies by investing its resources into computer, wireless and internet related information technologies. Forward-Looking Statement Disclosure This news release contains forward-looking statements as defined by the Private Securities Litigation Reform Act of 1995. Forward-looking statements include statements concerning plans, objectives, goals, strategies, future events or performance, and underlying assumptions and other statements that are other than statements of historical facts. These statements are subject to uncertainties and risks including, but not limited to, product and service demand and acceptance, changes in technology, economic conditions, the impact of competition and pricing, government regulation, and other risks defined in this document and in statements filed from time to time with the Securities and Exchange Commission. The Company's actual results could differ from such forward-looking statements. All such forward-looking statements, whether written or oral, and whether made by or on behalf of the Company, are expressly qualified by the cautionary statements and any other cautionary statements which may accompany the forward-looking statements. In addition, the Company disclaims any obligation to update any forward-looking statements to reflect events or circumstances after the date hereof. Contact: DF China Technology, Inc. Leon Zhou, Business Development Director Tel: +852-2255-0638 Email: Alan Stone & Company, LLC Alan Stone, Managing Director Tel: +1-212-521-4102 Email: Rand Brenner, Associate Tel: +1-310-444-3940 Email: David Kaplan, Associate Tel: +1-212-521-4102 Email: DATASOURCE: DF China Technology Inc. CONTACT: Leon Zhou of DF China, +852-2255-0638, or ; or Alan Stone, +1-212-521-4102, or ; or Rand Brenner, +1-310-444-3940, or ; or David Kaplan, +1-212-521-4102, or , all of Alan Stone & Company, LLC, for DF China

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