Videolocity International, Inc. (VCTY) Targeted Hydro Company

  Videolocity International, Inc. (PINK SHEETS: VCTY)(www.videointernationalcorp.com) identifies the name of the Chinese hydro company as the targeted merger candidate. Company Director Zhou Aixian Chairman said "For months our followers have been demanding the name and details of the Hydro merger candidate and our critics have made some inappropriate remarks regarding the existence of the Hydro company. We do not respond in public to every critic which may have its own agenda, in this case however because we continue to pursue this and other China deals of equal or greater statue we are releasing the name as requested by our North American merger consultants.

The merger candidate, Hubei Xinzheng Hydroelectric Development Limited, was founded in 2003, has a total of 25 staff members, and currently has 60 million RMB Yuan registered capital and 50 million RMB Yuan real capital. See China government link cdm.ccchina.gov.cn/WebSite/CDM/UpFile/File2310.pdf.

Currently, hydroelectric developments and operations are the major business of the company. The Chinese government attaches great importance on, encourages, and provides incentives to, the hydroelectric industry. The principle of the government's hydroelectric development is optimizing hydroelectric power. Developing hydroelectric power, which is a clean energy, will help the underdeveloped areas of China develop their economy and effectively sustain a more ecologically-friendly environment. It is closely related to the sustainable development of the economy and society as well as the long-term benefit of the future generations.

Hubei Xinzheng Hydroelectric Development is a massive project and our corporate consultants have proposed various complex and sophisticated mechanisms to secure the merger and anchor us to this asset. VCTY intends to finalize the sale of ASCC thus be better equipped with bargaining power, and other resources to make a further move; however, nothing is being ruled out just yet.

VCTY looks forward to keeping the investor public updated on a timely basis.

Safe Harbor Statement

Information in this news release may contain statements about future expectations, plans, prospects or performance of Videolocity International Inc. that constitute forward-looking statements for purposes of the Safe Harbor Provisions under the Private Securities Litigation Reform Act of 1995. The words or phrases "can be", "expects", "may affect", "believed", "estimate", "project" and similar words and phrases are intended to identify such forward-looking statements. Videolocity International Inc. cautions you that any forward-looking information provided by or on behalf Videolocity International Inc. is not a guarantee of future performance. None of the information in this press release constitutes or is intended as an offer to sell securities or investment advice of any kind. Videolocity International Inc.'s actual results may differ materially from those anticipated in such forward-looking statements as a result of various important factors, some of which are beyond Videolocity International Inc.'s control. In addition to those discussed in Videolocity International Inc.'s press releases, public filings, and statements by Videolocity International Inc.'s management, including, but not limited to, Videolocity International Inc.'s estimate of the sufficiency of its existing capital resources, Videolocity International Inc.'s ability to raise additional capital to fund future operations, Videolocity International Inc.'s ability to repay its existing indebtedness, the uncertainties involved in estimating market opportunities, and in identifying contracts which match Videolocity International Inc.'s capability to be awarded contracts. All such forward-looking statements are current only as of the date on which such statements were made. Videolocity International Inc. does not undertake any obligation to publicly update any forward-looking statement to reflect events or circumstances after the date on which any such statement is made or to reflect the occurrence of unanticipated events.

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