DVN (Holdings) Shareholders Approve Strategic Relationship with Motorola HONG KONG, July 8 /Xinhua-PRNewswire-FirstCall/ -- DVN (Holdings) Limited ("DVN", HKSE stock code: 0500) announced today that its shareholders have approved all matters presented for shareholder approval with respect to its strategic relationship with Motorola, Inc. ("Motorola", NYSE: MOT) and its subsidiaries. The agreements with Motorola include an investment by Motorola in DVN and provide for product distribution, technology development and engineering services between the two companies, and are designed to accelerate the successful deployment of digital broadcasting solutions to cable operators in China. Mr. Terry Lui, DVN's Chief Executive Officer, said, "DVN is pleased to have Motorola as its strategic partner. By working together, DVN and Motorola will be able to capitalize on each company's respective strengths, and hence accelerate the deployment of digital home terminals (also known as set top boxes) in China." With video, data, and voice beginning to converge around the world, Motorola with its strengths in broadband and hardware; and DVN with its presence in China and strengths in application software for the China market, will be able to provide the technology to facilitate this convergence in China. DVN believes that the digital cable market is about to expand rapidly as China's State Administration for Radio Film and Television ("SARFT") has announced plans to migrate 30 million cable subscribers to digital within the next several years, with the analog service to be completely cutoff by 2015. There are currently over 100 million cable TV subscribers in China. "With complementary strengths from Motorola and DVN in areas such as new technology development, high quality manufacturing, and localization expertise in emerging markets such as China, both companies can benefit greatly from this strategic partnership. " said Drina Yue, VP and Managing Director of Motorola BCS Asia Pacific. According to Mr. Lui, "with the agreements, DVN gains as a strategic partner, the world's leading provider of digital cable technology; and ensures that DVN remains a technology market leader in China. Motorola is involved in all aspects of digital broadband technology, from headend system solutions to consumer terminal products, and is the market leader for set-top terminals in the United States. With Motorola, DVN will now have a strategic partner with the requisite experience and expertise to help ensure that its digital cable deployments are successful." Pursuant to a subscription agreement entered into between DVN and a subsidiary of Motorola, Motorola may invest up to a maximum of US$33 million in four tranches. (equivalent to approximately HK$257.4 million), of which US$18 million is at Motorola's discretion. The price per share to be paid by Motorola will not be finalized until the time of each investment. If Motorola invests the maximum amount contemplated by the subscription agreement, it will own over 30% of the outstanding ordinary shares of DVN. DVN will use the proceeds of the investment for capital expenditures to upgrade the existing digital systems of the group, research and development, and general working capital. Motorola agreed to hold the ordinary shares of DVN that are acquired pursuant to the subscription agreement for one year after completion of the first tranche investment, subject to certain conditions remaining satisfied during that period. About DVN DVN (Holdings) Limited is a leading cable technology company that develops comprehensive digital transmission platforms for Pay TV over which content, services and applications to end-users are delivered. DVN's platform is inclusive of hardware, software and applications at both the headend and end- user levels that enable a service provider to run a digital broadcast business. As a result of DVN's technically advanced yet cost effective digital TV platform tailor-made for the cable TV market in the PRC, DVN is a key player in making digital broadcasts in China a reality. DVN has installed its digital broadcasting systems in more than 20 municipalities and provinces in the PRC with over 9 locations commercially operable. A range of digital TV services are provided at affordable costs which include channel rebroadcasts, near video on demand, on-line information, interactive advertising, T-commerce etc. In 2004, DVN's set top box won awards within China for its quality and popularity. Based in Hong Kong and listed on the Hong Kong Stock Exchange in 1989, DVN has been operating in the technology sector since 1982. About Motorola Motorola, Inc. (NYSE:MOT) is a global leader in wireless, broadband and automotive communications technologies that help make life smarter, safer, simpler, synchronized and fun. Sales in 2003 were $27.1 billion. Motorola creates innovative technological solutions that benefit people at home, at work and on the move. The company also is a progressive corporate citizen dedicated to operating ethically, protecting the environment and supporting the communities in which it does business. For more information: http://www.motorola.com/. For further information, please contact: DVN (HOLDINGS) LTD Sam Wong or Susanna Chiu Tel: +852-2585 7313 Fax: +852-2511 5522 E-mail: , Web-site: http://www.dvnholdings.com/ DATASOURCE: DVN (Holdings) Limited CONTACT: Sam Wong or Susanna Chiu of DVN (Holdings) Limited, +852-2585 7313, or fax, +852-2511 5522, , Web site: http://www.dvnholdings.com/

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