HONG KONG, Aug. 10 /PRNewswire-FirstCall/ -- On August 10, 2005, INTAC International, Inc. (Nasdaq: INTN; FSE: WKN 805768) (the "Company") a leading provider of a full range of integrated career development services to China, today announced its results of operations for the three and six months ended June 30, 2005. Revenues for the three and six months ended June 30, 2005 were $21.2 million and $35.9 million, respectively, compared to $22.8 million and $31.2 million for the same periods in 2004. Revenues for the six months ended June 30, 2005 included $32.8 million from the Company's distribution business and $3.1 million from its career development services, compared to $31.2 million from its distribution business and no revenues from career development services for the same period in 2004. Gross profit for the three and six months ended June 30, 2005 was $1.7 million and $4.0 million, respectively, compared to $2.3 million and $2.7 million in the same periods in 2004. Loss from operations for the three and six months ended June 30, 2005 was $489,244 and $718,683, respectively, compared to income from operations of $806,691 and $164,595 for the same periods in 2004. Net loss for the three and six months ended June 30, 2005 was $437,124 ($0.02 per share) and $612,253 ($0.03 per share) compared to net income of $873,362 ($0.04 per share) and $354,491 ($0.02 per share) for the same periods in 2004. Although career development services revenue and gross profit from the sales of education administration software grew during the first six months of 2005, the deterioration of the mobile handset market in Asia had an overall negative impact on the Company's consolidated operating results. This deterioration in the Asian mobile handset market is reflected in the substantial reduction of our gross margins in the distribution business. In addition, increased product development costs relating to the ramp-up of the career development services segment combined with substantial increases in selling, general and administrative expenses associated with being a public company and professional fees related to Sarbanes-Oxley compliance and maintaining the Company's listing on the Nasdaq small cap market contributed to the losses in the first six months of 2005. In the second half of 2005, the Company will continue to concentrate its resources and management expertise on its career development joint venture with China's Ministry of Education. "We are very pleased with the stable growth in our education administration software sales, and we will continue to assess how best to utilize our valuable partnership with the Ministry of Education to stimulate growth in the other revenue streams afforded by our career development services," said Wei Zhou, Chairman and CEO of INTAC. "Moreover, in the second half of 2005, we will more closely monitor the market for wireless handsets in Asia in our effort to be in a position to react more quickly to the influences on our distribution business." "We continue to bear the burden of increased costs associated with Sarbanes-Oxley compliance and being a public company," said J. David Darnell, Senior Vice President and Chief Financial Officer. "We are focusing our efforts on enhancing revenue growth and controlling costs in the second half of 2005." About INTAC International, Inc. INTAC International, Inc. is a provider of a full range of integrated educational and career development services as well as management software products for educational institutions in China. In a strong cooperation (partnership) with China's Ministry of Education, INTAC tailors its online and offline services and products towards a target group of 300 million Chinese students. The services are delivered through INTAC's websites, http://www.phrbank.com/ and http://www.joyba.com/, as well as through a range of mobile value-added services, its print formats and its local Career Service Centers across China. Forward-Looking Statements This press release contains certain "forward-looking statements." Such forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause our actual results, performance or achievements expressed or implied by such forward-looking statements to differ materially from those projected or implied. Factors that could cause or contribute to such differences include, among other things: changes in general business conditions; the impact of competition in our industry, especially in the Asia- Pacific Rim; the added expense structure assumed by us as a U.S. public company; political and economic events and conditions in jurisdictions in which we operate; Internet laws and regulations of the government of The People's Republic of China, or the PRC, that are unclear and may change in the near future; regulation and censorship of information distribution in China which may adversely affect our business; political and economic policies of the PRC; the risk of the loss of the agreements, or the exclusivity terms, with the PRC's Education Management Information Center; the high cost of Internet access that may limit the growth of the Internet in China and impede our growth; advertising and e-commerce customers that have only limited experience using the Internet for advertising or commerce purposes; the acceptance of the Internet as a commerce platform in China which depends on the resolution of problems relating to fulfilment and electronic payment; concerns about security of e-commerce transactions and confidentiality of information on the Internet that may increase our costs, reduce the use of our Internet portal and impede our growth; our network operations that may be vulnerable to hacking, viruses and other disruptions, which may make our products and services less attractive and reliable; changes in interest rates, foreign currency fluctuations and capital market conditions; and other factors including those detailed under the heading "Risk Factors" and elsewhere in the INTAC's annual report on Form 10-K for the fiscal year ended December 31, 2004 and quarterly report on Form 10-Q for the quarter ended June 30, 2005, as filed with the Securities and Exchange Commission. We disclaim any intention or obligation to revise any forward-looking statements whether as a result of new information, future events or otherwise. INTAC undertakes no obligation to update any forward-looking statements made in this media release. Contact: J. David Darnell, Senior Vice President and Chief Financial Officer, 469-916-9891, for further information. Internet: http://www.intac-international.com/ DATASOURCE: INTAC International, Inc. CONTACT: J. David Darnell, Senior Vice President and Chief Financial Officer, +1-469-916-9891, Web site: http://www.intac-international.com/

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