chinadotcom Reports Record 2004 Revenues 0f US$182.7 Million, Up 135% Year-On-Year

chinadotcom Reports Record 2004 Revenues 0f US$182.7 Million, Up
135% Year-On-Year




                 Executive Chairman Assumes CEO Position;
           Enterprise Software Divisions See Continued Growth;
             Investments Planned to Grow Existing Businesses

  Q4 2004-on-Q3 2004 US GAAP
   -- Total revenue rose 13% to US$54.2 million from US$48.0 million in Q3
      2004
   -- Gross profit increased 22% to US$32.3 million from US$26.4 million in
      Q3 2004
   -- Gross margin was 60%, increasing from 55% in Q3 2003
   -- Operating income was US$0.6 million compared to operating loss of
      US$6.9 million in Q3 2004
   -- Income before taxes was US$1.8 million compared to a loss of US$5.7
      million in Q3 2004
   -- Net loss was US$8.0 million compared to a net loss of US$6.2 million
      in Q3 2004 due principally to a tax expense of US$9.0 million, US$7.4
      million of which is non-cash and primarily related to acquisition
      accounting for Pivotal Corporation ('Pivotal') and Ross Systems, Inc.
      ('Ross')

  Q4 2004-on-Q3 2004 Non-GAAP*
   -- Non-GAAP net income was US$3.6 million compared to Non-GAAP net income
      of US$2.8 million in Q3 2004
   -- Non-GAAP earnings per share was 3.3 US cents compared to 2.7 US cents
      in Q3 2004
   -- Non-GAAP net income excludes certain non-recurring or non-cash
      expenses including (i) amortization of purchased intangibles related
      to the acquisition of subsidiaries, (ii) restructuring charges and
      (iii) adjustments which relate to tax impact of acquisitions

  Full Year-on-Year US GAAP
   -- Total revenue rose 135% to US$182.7 million from US$77.9 million in
      2003
   -- Gross profit increased 165% to US$103.5 million from US$39.0 million
      in 2003
   -- Gross margin was 57%, increasing from 50% in 2003
   -- Operating loss was US$6.5 million compared to operating income of
      US$235,000 in 2003
   -- Income before taxes was US$348,000 compared to US$16.6 million in 2003
   -- Net loss was US$10.6 million compared to net income of US$15.5 million
      in 2003



HONG KONG, March 9 /Xinhua-PRNewswire-FirstCall/ -- chinadotcom corporation
(Nasdaq: CHINA; http://www.corp.china.com/ ) today announced its unaudited
financial results for the fourth quarter and full year of 2004 under US GAAP.

Fourth Quarter 2004

The company reported revenues of US$54.2 million for Q4 2004, an increase of
13% from US$48.0 million in Q3 2004.  Fourth quarter 2004 gross profit was
US$32.3 million, up 22% from US$26.4 million in Q3 2004.  Fourth quarter gross
margin was 60% compared to 55% in Q3 2004.  Fourth quarter 2004 operating
income was US$0.6 million compared to an operating loss of US$6.9 million in Q3
2004.  Fourth quarter 2004 income before taxes was US$1.8 million compared to a
loss before taxes of US$5.7 million in Q3 2004.  Fourth quarter 2004 net loss
was US$8.0 million compared to a net loss of US$6.2 million in Q3 2004. Fourth
quarter 2004 basic loss per share was 7.2 US cents compared to a basic loss per
share of 5.8 US cents for Q3 2004.

On a non-GAAP basis, fourth quarter 2004 net income was US$3.6 million compared
to net income of US$2.8 million in Q3 2004.  Fourth quarter 2004 non- GAAP
basic earnings per share was 3.3 US cents compared to a non-GAAP basic earnings
per share of 2.7 US cents in Q3 2004.

Full Year 2004

The company reported revenues of US$182.7 million for the full year 2004, an
increase of 135% from US$77.9 million in 2003.  Full year 2004 gross profit was
US$103.5 million, up 165% from US$39.0 million in 2003. Full year gross margin
was 57% compared to 50% in 2003.  Full year 2004 operating loss was US$6.5
million compared to a 2003 net income of US$235,000.  Full year 2004 income
before taxes was US$348,000 compared to US$16.6 million in 2003.  Full year
2004 net loss was US$10.6 million compared to net income of US$15.5 million in
2003.  Full year 2004 basic loss per share was 10.0 US cents compared to a
basic earnings per share of 15.4 US cents for 2003.

As of December 31, 2004, the company had approximately 110.8 million common
shares outstanding and held US$ 230 million in non-GAAP net cash and cash
equivalents on its balance sheet.

  Reconciliation from GAAP results to non-
  GAAP results:                                      Q3 2004       Q4 2004
  (amount in thousands of US dollars,
    except per share data)

  GAAP net income/(loss)                             (6,152)        (8,025)

  Add back revenue impact of deferred
   maintenance revenue down related to the
   acquisition of subsidiaries                          916            591

  Add back amortization of purchased
   intangibles related to
   acquisition of subsidiaries                        3,451          2,325

  Add back stock compensation expenses
   related to the acquisition of
   subsidiaries                                         518            462
  Add back legal and professional expenses
   on stock offering                                  1,344             --

  Add back restructuring expenses                     3,083            305
  Add back deferred tax impact related to
   acquisition of subsidiaries                         (734)         7,386
  Add back impairment of available for sale
   securities                                           416            574

   Non-GAAP net income                                2,842          3,618

   Non-GAAP basic earnings per share                  0.027          0.033



The majority of the non-GAAP reconciliation items set forth above are non-cash
and relate to the accounting for the acquisitions of Pivotal and Ross.

  * All references to Non-GAAP in the results highlights herein should be
    read in conjunction with the description of Non-GAAP Measures later in
    this press release and the more detailed financial statements included
    at the end of this release.

  Recent Highlights
   -- Pivotal, the company's Customer Relationship Management ("CRM")
      software unit, acquired in Q1 2004, continued its third successive
      strong quarter.  The unit's revenue contribution was US$15.9 million
      for the quarter.  In addition to holding 3 well-attended customer
      conferences during this quarter in Chicago, San Francisco and Paris,
      the CRM unit won 'Best in Show' at the Healthcare IT Summit and the
      CRM Select Excellence Award from Info-Tech Research Group.
   -- Ross, the company's Enterprise Resource Planning ("ERP") software
      unit, contributed US$13.2 million for the quarter and added a number
      of new customers including key wins in the UK, Spain and Poland.  The
      unit launched iRennaissance 5.9, which included the integration of the
      iRennaissance CRM product powered by Pivotal and introduced
      iRennaissance Supply Chain Management ('SCM'), its first product
      release out of its Shanghai-based development team.  The unit also
      launched a new line of sales analysis tools. In addition to cross-
      selling the Pivotal powered CRM product to 10 current customers, the
      unit consummated the first co-sale of an IMI-based SCM warehousing
      product.
   -- IMI, the company's SCM software unit, achieved operating earnings in
      the quarter and added a number of product support and management
      features to its products.
   -- CDC Software Asia, which sells and markets the company's enterprise
      software products, including those from Pivotal and Ross, in the Asia
      Pacific region, launched a new version of the company's business
      analytics tool, Executive Suite.  The unit began to build its sales
      and marketing infrastructure in Japan, further expanded its sales
      capability in China and achieved CMM Level 4 certification for its
      Shanghai-based software development center.
   -- The china.com portal, named the exclusive online partner of The 10th
      National Games of the People's Republic of China, launched a one year
      count-down clock and the commercial website for The Games
      ( http://titan.china.com/ ).
   -- The operating environment for mobile value added services ("MVAS")
      in China was harsh during the second half of 2004 as a result of
      sanctions and new restrictions imposed by the regulator and mobile
      operators.  As a consequence, the company's fourth quarter MVAS
      revenues declined.  The MVAS units allocated more resources toward
      2.5G services, such as Wireless Application Protocol ('WAP') and
      MMS.



Dr. Raymond Ch'ien, the company's Executive Chairman and newly appointed CEO,
says, '2004 marked a year of positive change and transformation for
chinadotcom.  We acquired two enterprise software companies and added a mobile
value added service provider.  These investments have significantly extended
our global reach and broadened the products and services we offer.  Entering
2005, the company has a strengthened management team; a broad set of first
class mid-enterprise software products for the international market; in China,
a portal that is being repositioned with superior special interest content; and
large market potential in mobile value added services driven by 2.5G
network-based products."

  2005 -- Investing for Sustained Growth
  The company's key 2005 investment plans include:

   -- Acceleration of research & development programs for enterprise
      software products
   -- Addition of selected vertical market offerings for the company's
      enterprise software products
   -- Expansion of the sales and marketing network for enterprise software
      in the Asia Pacific region
   -- Development of innovative products and services for the existing 2.5G
      mobile networks and the proposed 3G mobile networks in China
   -- Development of specialized content, cultivating strategic partnerships
      and sponsoring key events for the china.com portal



Dr. Ch'ien continues, 'Our goal is to enhance competitiveness during 2005. The
investments we make this year will help us achieve an improved and sustainable
financial performance in 2006 and beyond."

Other Developments

The board of directors has accepted the resignation of CEO Peter Yip who has
been on an extended leave of absence.  Mr. Yip will remain on the board as Vice
Chairman.  Executive Chairman Raymond Ch'ien has been appointed CEO by the
board of directors.

Dr. Ch'ien comments, 'On behalf of my board colleagues, I would like to
express our appreciation for Peter's indelible contributions as founding CEO.
Under his visionary and untiring leadership, the company developed from a
concept to a burgeoning enterprise with over 1,800 employees spread over four
continents with the potential of gaining preeminence in the fields of new media
in China and specialist enterprise software internationally.'

Non-GAAP Measures

To supplement the financial measures prepared in accordance with generally
accepted accounting principles ("GAAP"), the company uses non-GAAP financial
measures for net income and other line items, which are adjusted from results
based on GAAP.  These non-GAAP measures are provided to enhance the user's
overall understanding of the company's current financial performance and its
prospects for the future.  The company believes the non-GAAP results provide
useful information to both management and investors.

In particular, the adjusted presentation may be useful for investors to assess
the impact of recent acquisitions.  Although the company continues to report US
GAAP results to investors, the company believes the inclusion of non-GAAP
financial measures provides further clarity in its financial reporting.  These
non-GAAP financial measures may be different from non-GAAP financial measures
used by other companies, and should be considered in addition to results
prepared in accordance with GAAP, but should not be considered a substitute for
or superior to GAAP measures.  The non-GAAP financial measures included in this
press release have been reconciled to the nearest GAAP measures.

Unaudited and Preliminary Financial Information

The financial information included in this press release is unaudited and
preliminary.  At this time, the company's independent auditor, Ernst & Young,
has not completed its audit of the company's consolidated financial statements
and related notes.  The financial information included herein is subject to
adjustment pending the completion of such audit.  Adjustments to such financial
statements and information may be identified when the audit work is completed,
which could result in significant differences between the company's audited
consolidated financial statements and the preliminary unaudited financial
information set forth in this press release and prior press releases as related
to the company's 2004 financial information.  The audited consolidated
financial statements and related notes will be included in the company's Annual
Report on Form 20-F for the year ended December 31, 2004.

Conference Call

chinadotcom will hold a conference call to review its fourth quarter 2004
results at 8:00 am EDT on Wednesday, March 9, 2005 (9:00 pm on March 9, Hong
Kong time).  Investors can call:

   USA and CANADA Toll Free Number: [phone]
   US Toll Number:                  [phone]
   UK Toll Free Number:             0800-0689199
   AUSTRALIA Toll Free Number:      1800-003163
   CHINA Toll Free Number:          10800-1300432
   HONG KONG Toll Number:           800-903265



The passcode is Q4 China and the call leader is Raymond Ch'ien. Alternatively
the conference call can be heard via the Internet at
http://www.talkpoint.com/viewer/starthere.asp?Pres=109232 .

Instant Replay

For those unable to call in or listen to the live broadcast via the web, a
replay will be available after the call at http://www.corp.china.com/ under
INVESTOR RELATIONS or via Instant Replay by calling US Toll Number:
973-341-3080, US and CANADA Toll Free Number: 877-519-4471, or UK Toll Free
Number: 08001693875. The passcode for the Instant Replay is 5283649.

About chinadotcom corporation

chinadotcom corporation (Nasdaq: CHINA; Website: http://www.corp.china.com/) is
a leading integrated enterprise software and mobile applications company
focused on China and internationally.  The company has over 1,800 employees
with operations in 14 countries.  For more information about chinadotcom
corporation, please visit the website http://www.corp.china.com/ .

Cautionary Note Regarding Forward-Looking Statements

This press release includes "forward-looking statements" within the meaning of
the United States Private Securities Litigation Reform Act of 1995, and
includes statement relating to the Company's plan for its enterprise software
business to accelerate research and development, add selected vertical market
offerings and expand the sales and marketing network in the Asia Pacific
region, for its mobile services and applications business to develop innovative
products and services for 2.5G and 3G mobile networks in China, and for its
portal business to develop specialized content, cultivate strategic
partnerships and sponsor key events.  These statements are based on
management's current expectations and are subject to risks and uncertainties
and changes in circumstances.  There are important factors that could cause
actual results to differ materially from those anticipated in the forward
looking statements, including the following: (a) the ability to realize
strategic objectives by taking advantage of market opportunities in targeted
geographic markets; (b) the ability to make changes in business strategy,
development plans and product offerings to respond to the needs of current, new
and potential customers, suppliers and strategic partners; (c) the ability to
integrate operations or new acquisitions in accordance with the company's
business strategy; (d) the effects of restructurings and rationalization of
operations; (e) the ability to recruit and retain qualified, experienced
employees; (f) the demand for the company's software products; (g) the
relationship between the company's software business units and their partner
network and the ability of these partners to effectively sell the company's
software products; (h) the risks associated with the development and licensing
of software generally, including potential delays in software development and
technical difficulties that may be encountered in the development or use of
software, existence of error and defects in software products and size and
timing of license transactions; (i) the ability to manage regulatory and
litigation risks; (j) the ability to address technological changes and
developments including the development and enhancement of products; (k) the
entry of new competitors and their technological advances; and (l) the
company's reliance on mobile operators in China to provide MVAS and the
migration by China Mobile of MVAS products onto the MISC platform and the
effect of such migration on the company's MVAS revenues. Further information on
risks or other factors that could cause results to differ is detailed in
filings or submissions with the United States Securities and Exchange
Commission made by chinadotcom corporation in its Annual Report for the year
ended December 31, 2003 on Form 20-F/A filed on July 8, 2004.  All forward-
looking statements included in this press release are based upon information
available to management as of the date of the press release, and you are
cautioned not to place undue reliance on any forward looking statements which
speak only as of the date of this press release.  The company assumes no
obligation to update or alter the forward-looking statements whether as a
result of new information, future events or otherwise.

                         chinadotcom corporation
                   Consolidated Statement of Operations
      (Amounts in thousands of U.S. dollars, except per share data)


                                               Quarter Ended   Quarter Ended
                                                September 30,  December 31,
                                                      2004           2004
                                                 (unaudited)*   (unaudited)*
   Revenues
      Software                                      28,438           38,491
      Business services                              9,727            9,352
      Mobile services and
       applications                                  6,822            2,826
      Advertising and marketing
       activities                                    3,019            3,554
      Other income                                      --               --
                                                    48,006           54,223

   Cost of revenues
      Software                                     (11,759)         (14,255)
      Business services                             (6,939)          (6,185)
      Mobile services and
       applications                                 (1,775)            (119)
      Advertising and marketing
       activities                                   (1,169)          (1,373)
      Other income                                      --               --
                                                   (21,642)         (21,932)

   Gross profit                                     26,364           32,291
   Gross margin %                                      55%              60%

   Selling, general and
    administrative expenses                        (22,591)         (23,313)
   Research and development expenses                (3,934)          (4,668)
   Depreciation and amortization
    expenses                                        (3,700)          (3,447)
   Restructuring expenses                           (3,083)            (305)
                                                   (33,308)         (31,733)

   Operating income/(loss)                          (6,944)             558

   Interest income                                   2,579            1,871
   Interest expense                                   (650)            (360)
   Loss on disposal of available-
    for-sale securities                                 --             (179)
   Impairment of available-for-sale
    securities                                        (416)            (574)
   Gain/(loss) on disposal of
    subsidiaries and investments                      (270)             796
   Share of losses in equity
    investees                                           --             (313)
   Income/(loss) before income taxes                (5,701)           1,799

   Income taxes benefits/(expenses)                    685           (8,962)
   Losses before minority interests                 (5,016)          (7,163)

   Minority interests in income of
    consolidated subsidiaries                         (791)            (149)
   Losses from continuing operations                (5,807)          (7,312)

   Discontinued operations
      Loss from operations                              (7)             (48)
      Loss from disposals                             (338)            (665)
   Net losses                                       (6,152)          (8,025)


   Basic losses per share                           (0.058)          (0.072)
   Diluted losses per share                         (0.058)          (0.072)

   Weighted average no. of shares              105,890,819      110,781,552
   Diluted no. of shares                       105,890,819      110,781,552

   Reconciliation from GAAP results
    to non-GAAP results:

   GAAP net loss                                    (6,152)          (8,025)

   Add back revenue impact of
    deferred maintenance revenue
      write down related to the
       acquisition of subsidiaries                     916              591
   Add back amortization of
    purchased intangibles related to
    the
      acquisition of subsidiaries                    3,451            2,325
   Add back stock compensation
    expenses related to the
      acquisition of subsidiaries                      518              462
   Add back legal and professional
    expenses on stock offering                       1,344               --
   Add back restructuring expenses                   3,083              305
   Add back deferred tax impact
    related to acquisition of
       subsidiaries                                   (734)           7,386
   Add back impairment of available
    for sale securities                                416              574


   Non-GAAP net income                               2,842            3,618

   Non-GAAP Basic earnings per share                 0.027            0.033
   Weighted average no. of shares -
    Non-GAAP                                   105,890,819      110,781,552

   * Adjusted for discontinued operations



                         chinadotcom corporation
                   Consolidated Statement of Operations
      (Amounts in thousands of U.S. dollars, except per share data)


                                                 Year Ended     Year Ended
                                                December 31,    December 31,
                                                        2003          2004
                                                  (unaudited)*  (unaudited)*
   Revenues
      Software                                        12,891       107,879
      Business services                               37,242        39,391
      Mobile services and applications                16,876        23,694
      Advertising and marketing
       activities                                      8,841        11,709
      Other income                                     2,001            10
                                                      77,851       182,683

   Cost of revenues
      Software                                        (6,960)      (43,240)
      Business services                              (24,469)      (26,750)
      Mobile services and applications                (2,247)       (4,597)
      Advertising and marketing
       activities                                     (4,312)       (4,645)
      Other income                                      (889)           --
                                                     (38,877)      (79,232)

   Gross profit                                       38,974       103,451
   Gross margin %                                        50%           57%

   Selling, general and administrative
    expenses                                         (31,785)      (80,419)
   Research and development expenses                      --       (13,825)
   Depreciation and amortization
    expenses                                          (6,954)      (12,276)
   Restructuring expenses                                 --        (3,387)
                                                     (38,739)     (109,907)

   Operating income/(loss)                               235        (6,456)

   Interest income                                    13,412         9,653
   Interest expense                                   (1,070)       (1,895)
   Gain on disposal of available-for-
    sale securities                                    4,599           167
   Impairment of available-for-sale
    securities                                            --        (1,362)
   Gain/(loss) on disposal of
    subsidiaries and investments                      (1,263)          549
   Other non-operating gains                             934            --
   Other non-operating losses                           (148)           --
   Share of losses in equity investees                  (124)         (308)
   Income before income taxes                         16,575           348

   Income taxes benefits/(expenses)                      598        (7,541)
   Income/(loss) before minority
    interests                                         17,173        (7,193)

   Minority interests in income of
    consolidated subsidiaries                         (2,257)       (2,227)
   Income/(loss) from continuing
    operations                                        14,916        (9,420)

   Discontinued operations
      Loss from operations                            (1,519)         (190)
      Income/(loss) from disposals                     2,127          (950)
   Net income/(loss)                                  15,524       (10,560)


   Basic earnings/(losses) per share                   0.154        (0.100)
   Diluted earnings/(losses) per share                 0.150        (0.100)

   Weighted average no. of shares                100,532,594   105,898,392
   Diluted no. of shares                         103,199,421   105,898,392

   * Adjusted for discontinued operations


  For further information, please contact:

  Media Relations
   Jane Cheng, Associate Director, Public Relations
   Tel:   [phone]
   Fax:   [phone]
   Email: 

  Investor Relations
   Craig Celek, VP Investor Relations
   Tel:   [phone]
   Fax:   [phone]
   Email: 

Web Sites:  http://www.corp.china.com

                 http://www.talkpoint.com/viewer/starthere.asp?Pres=109232 

DATASOURCE: chinadotcom corporation



CONTACT: Media Relations - Jane Cheng, Associate Director, Public

Relations, [phone], or fax, [phone], or ,

or Investor Relations - Craig Celek, VP Investor Relations, [phone],

or fax, [phone], or , both of CHINA 

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