chinadotcom Acquires Majority Interest of Leading Supply Chain Solutions Provider IMI Corp.

Capitalizes on growth in the manufacturing industry in China and across Asia

HONG KONG September 09, 2003 CDC Software, a wholly-owned subsidiary and software unit of chinadotcom corporation (NASDAQ: CHINA; website: www.corp.china.com), today announced the acquisition of a majority stake of Industri-Matematik International Corp. ("IMI"), a leading provider of supply chain management ("SCM") solutions in the United States and Europe.

IMI is expected to be an accretive acquisition for chinadotcom, with positive earnings, cash flow, and recurring revenue streams. IMI revenues for the six months ended June 30, 2003 were US$21.9 million, with operating EBITDA of 14%, or US$3.1 million. IMI has over 35 years of experience in the SCM software sector with a strong presence in the US, Europe, and the Nordic countries. IMI's proprietary software is comprised of comprehensive supply chain solutions that serve a wide range of businesses including complex retail, wholesale, consumer goods, distribution operations. The IMI customer base includes GE, AT&T, Starbucks, Campbell Soup, Dial, Frito Lay, Kellogg's, and Warner/Electra/Atlantic. IMI's financial results will be consolidated into chinadotcom's financial statements from September 2003 onwards.

"The acquisition of IMI fits our overall strategy of developing and assembling a suite of related premium enterprise software solutions that allow for synergist cross selling opportunities as well as the ability to enhance mid and long term profit by transferring key cost centers to China. In addition, IMI has special strategic value for us since SCM is a critical front-end requirement to any modern ERP package, and IMI's SCM solution is a world leader. We feel that it complements our pending acquisition of Ross Systems, a leading process manufacturing software company, in terms of geographical presence, complementary product channels, and potential cross-selling opportunities to both customer bases," commented Peter Yip, Chief Executive Officer of chinadotcom corporation.

Mr. Yip continued, "As China plays an ever increasing role in global manufacturing, especially since its entry into the WTO, we see growing demand from Chinese companies and multi-national companies operating in China for SCM solutions, including order management, warehousing and logistics - to link up factories in China with demand centers around the world. We believe IMI will allow us to best serve this need."

Timothy Campbell, President and Chief Executive Officer of IMI, said, "We believe CDC Software's well-established network and strong presence in the Greater China and Asia Pacific region should help expand distribution for IMI's Supply Chain Management products in this fast-growing geographic market. These new developments and channel capabilities should strengthen our market position as a leading global SCM solutions provider."

chinadotcom's stake in IMI resulted from CDC Software's purchase of a 51% interest of the holding company which owns 100% of IMI. The remaining 49% is held by Symphony Technology Group ("Symphony"), a Palo Alto, California-based private equity firm focused on enterprise software and services, which previously owned 100% of IMI. In consideration for the 51% stake, CDC software has agreed to invest US$25 million into the holding company, and has also agreed to finance a loan facility for the holding company of up to a further US$25 million. All funds into the holding company will be used primarily for further expansion in the SCM software sector via acquisitions, strategic investments and organic growth. Additional terms of the transaction designate CDC Software as the master distributor for IMI's software products in China as well as an outsourcing partner for IMI.

"chinadotcom is an excellent partner for us. We share the same vision of building a market leading SCM software company. chinadotcom provides an excellent network to one of the fastest growing software market in the world and they are investing in quality offshore development and support," said Romesh Wadhwani, Founder and Managing Partner of Symphony Technology Group. "We believe that together we can further develop IMI into a dominant and uniquely global supply chain software company."

Symphony is exclusively focused on software and technology investments. They have a team of operating and investing professionals deeply experienced in enterprise software. It was founded by Managing Partner, Romesh Wadhwani, who previously was the founder and Chief Executive Officer of Aspect Development.

"We have been very impressed by Symphony's positive track record of consistent operational improvements at various companies which it has managed, including IMI," said Mr. Yip. "Given that their objectives are complementary to ours, we have been comfortable allowing Symphony to continue their strong role with respect to managing IMI and identifying new acquisition and strategic investment opportunities in the SCM sector."

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About chinadotcom corporation

chinadotcom corporation (NASDAQ: CHINA; Website: www.corp.china.com) is a leading integrated enterprise solutions and software company offering technology, marketing, mobile and media services for companies throughout Greater China and the Asia-Pacific region, the US and the UK. With operations in 10 markets, with over 1,000 employees - the companies under the chinadotcom group have extensive experience in several industry groups including finance, travel and manufacturing, and in key business areas, including e-business strategy, packaged software implementation and development, precision marketing and supply chain management. chinadotcom leverages this expertise with alliances and partnerships to help drive innovative client solutions.

About CDC Software

CDC Software is a wholly owned subsidiary and software unit of chinadotcom corporation (NASDAQ: CHINA), a leading integrated enterprise software and solutions company in Asia. CDC Software integrates a series of chinadotcom's in-house developed products engineered in the two software development centers in China, which include PowerBooks, PowerHRP (Human Resources and Payroll), PowerATS (Attendance Tracking System), Power-eHR, PowerPay+, PowerCRM and Power eDM (a double-byte e-mail marketing technology). In addition, the company also broadens its serving offerings in software arenas by establishing strategic partnerships with leading international software vendors to localize and resell their software products throughout the Asia Pacific region.

chinadotcom's software arm currently has over 1,000 customer site installations and 600 enterprise customers located throughout the Asia Pacific region. Selected multinational and domestic customers include ACNeilsen, Carrefour, Legend Computer, Microsoft (China) Co. Ltd., Shenzhen Airlines, Swire Beverages, Shangri La Hotels and Resorts and Starwood Hotels and Resorts.

For more information about chinadotcom corporation and CDC Software, please visit the Web site http://www.corp.china.com.

About Industri-Matematik

Industri-Matematik International Corp. (IMI) is a leading provider of supply chain solutions for the retail value chain. IMI focuses on performance-driven customer fulfillment using sophisticated analytic applications that provide a granular view of critical data for real-time, complex decision-making. The company is dedicated to helping consumer goods and retail companies automate, streamline and measure order management and replenishment processes, based on actual customer demand. IMI offers proven solutions in collaborative order management, fulfillment, distribution center / store replenishment, supply chain analytics, visibility and event management capabilities. IMI is headquartered in Mt. Laurel, New Jersey with offices in the United Kingdom, Sweden and the Netherlands. Additional information about IMI is available at www.industri-matematik.com.

About Symphony Technology Group

Symphony Technology Group is an enterprise software investment firm offering a unique blend of technology, venture funding, partnering, marketing, and corporate finance expertise. Led by experienced software operators and entrepreneurs, Symphony strives to make trajectory changing impact on the most important dimensions of building successful companies in the software space: hiring key management team members, identifying and developing "game-changing" strategies and executing flawlessly against these strategies. For more information about Symphony, please visit the website www.symphonytg.com.

Safe Harbor Statements

This press release includes certain "forward-looking statements" within the meaning of the United States Private Securities Litigation Reform Act of 1995. These statements are based on chinadotcom management's current expectations and are subject to risks and uncertainties and changes in circumstances. All forward-looking statements included in this press release are based upon information available to chinadotcom as of the date of the press release, and it assumes no obligation to update or alter its forward looking statements whether as a result of new information, future events or otherwise. Further information on risks or other factors that could affect chinadotcom's results of operations is detailed in its filings with the United States Securities and Exchange Commission, including the Annual Report for the year ended December 31, 2002 on Form 20-F filed on June 16, 2003.

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