Liquidity Difficulties of Regent Merchant Bank in Korea Will Have Limited Impact on iRegent Group iRegent Not Involved With Illegal Financial Dealings In Korea HONG KONG, Nov. 28 /PRNewswire Asia-AsiaNet/ -- The Hong Kong listed iRegent Group (SEHK: "575.HK") announced today that liquidity difficulties being experienced by the Korean financial institution Regent Merchant Bank, in which it has an effective interest of 16.5%, will have only a limited impact on iRegent's operations and financial strength. The difficulties being experienced by Regent Merchant Bank in Korea follow significant withdrawals by depositors after rumours involving alleged stock manipulation of an associated Korean company, Regent Securities Limited, started circulating. The iRegent Group has told Korean regulators that it has never engaged in stock price manipulation in Korea or elsewhere. The iRegent Group further stated that the group has had no illegal dealings with Korean national Mr. Jin Seong-Hyun and is co-operating fully with investigations by Korean regulatory authorities into Mr. Jin's activities. The iRegent Group's direct and indirect financial interests in Regent Merchant Bank (previously named Kyungsu Merchant Bank) are limited to approximately US$15 million. This represents approximately 12% of the consolidated net tangible assets of iRegent Group as at 31 March 2000. iRegent Group owns approximately 46% of KoreaOnline which, in turn, effectively owns approximately 31% of Regent Merchant Bank. "The iRegent Group has been aware for some time that Korean regulatory authorities have been investigating Mr. Jin, who is a minority shareholder in KoreaOnline, regarding allegations of stock price manipulation in the shares of Regent Securities. Members of the iRegent Group have been actively helping with that investigation and continue to do so. iRegent Group has not had any contact with Mr. Jin for some time," the iRegent Group stated. In May, 2000, the iRegent Group discovered that Mr. Jin, in connection with Mr. C.K. Koh, who was at that time CEO of Regent Securities, had engaged in financial transactions which breached internal regulations. These were all reported to the Korean regulators and the KoreaOnline Group immediately set in motion a process of minimising its exposure by actively collecting good collateral and by aggressively provisioning against possible future losses. As a consequence, Mr. Jin's approximately 13% stake in KoreaOnline has been pledged to Regent Merchant Bank and this stake is proposed to be sold to foreign investors. The iRegent Group, through KoreaOnline, has been a continuous investor in Korea. All stock purchases by KoreaOnline are undertaken in complete accordance with Korean law. The iRegent Group, in conjunction with KoreaOnline, has many other investments apart from Regent Merchant Bank in Korea, which together employ more than 2,500 people in the country. The audited consolidated net tangible asset value of the KoreaOnline group as at 31 March 2000 was more than US$360 million. The iRegent Group is firmly committed to its operations in Korea. Trading in iRegent's shares and warrants were suspended at its own request today, 28 November. Trading is expected to recommence tomorrow. CONTACT: John Holland Gavin Anderson & Company (Hong Kong) Tel: 852-2523-7189 [email protected] SOURCE: iRegent Group