China Cable and Communication, Inc. (CCCI), a China-based cable TV company, today announced that its 49%-owned Baoding Network 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.

China Cable and Communication, Inc. currently operates a cable television system in Baoding City, through its 49% interest in Baoding Pascali Cable Television Network, which has more than 200,000 subscribers.

The terms of the joint venture agreement require confidentiality as to the identity of China Cable and Communication's joint venture partner until June 1, 2004, at which time, IP Telephony Services will be formally marketed to customers. At the present time, required upgrades to the Baoding Pascali Cable Television Network as well as upgrades to the joint venture partner's system are being undertaken, and a group of users are currently testing the Company's IP Telephony services. The upgrades are scheduled for completion by July 31, 2004 in order to commence providing the IP Telephony Services.

IP Telephony, or Voice-over-IP, provides for the transport of telephone calls over the Internet, regardless of whether traditional telephony devices, multimedia PCs or dedicated terminals take part in the calls, and regardless of whether the calls are entirely or only partially transmitted over the Internet. The greatest factor in the growth of IP Telephony services worldwide is the significant cost savings in transporting phone calls over the Internet, instead of transporting the calls over the traditional telephone system infrastructure.