ChinaCache Completes US$8.5 Million Equity Financing
Latitude Capital Group Acted as the Financial Advisor to ChinaCache on the Transaction
2005-09-26

Beijing, China - September 26, 2005 - ChinaCache International Holdings Ltd. (www.chinacache.com), the provider of content delivery network services in China, today announced the completion of its latest round of equity financing totaling US$8.5 million. JAFCO Asia, Intel Capital and Investor Growth Capital led this round of financing.

The funds will be used to strengthen ChinaCache's efforts in research and development and accelerate its system expansion as well as working capital requirements.

ChinaCache's content delivery network (CDN) services provide businesses that target Chinese web users with a cost-effective distributed platform that accelerates content delivery to end-users. "Although China has over 100 million1 internet users, interconnections among different service providers and gateway congestions hinder the timely delivery of rich content and downloads," said Wang Song, the founder and CEO of ChinaCache. "This round of financing will enable us to expand our network and introduce additional value-added services to our customers to avoid these bottlenecks. Not only can our investors help us broaden our reach to overseas customers interested in accessing Chinese web users, but their experience in helping grow successful companies will also be invaluable."

Commenting on the deal, Michael Chow, director of JAFCO Asia said, "We are excited with the opportunity to work with Mr. Wang and to build ChinaCache into a world class company. We hope to contribute to ChinaCache's growth by bringing in JAFCO Asia's experience in guiding seasoned entrepreneurs into building world-class companies."

Duane Kuang, director of Intel Capital China, added, "As the use of Internet and broadband grows in China, content distribution network becomes a critical part of the Internet infrastructure. ChinaCache plays an important role in this ecosystem. We are excited about the investment in ChinaCache and we look forward to working with the company and our co-investors in the years to come."

Michael Ricks, CEO of Investor Growth Capital Asia, notes: "Mr. Wang has been a pioneer of CDN technologies and services in China-successfully improving the internet experience for millions in China. Investor Growth Capital Asia is proud to support the expansion of ChinaCache with our strategic and global network."

Latitude Capital Group acted as financial advisor and placement agent for ChinaCache.

About ChinaCache

ChinaCache is currently the leading CDN provider in China. Since 2001, ChinaCache has provided cost-efficient storage and delivery of Internet-based applications and rich interactive content to leading Internet enterprises and multi-national corporations targeting China's Internet users.

ChinaCache currently serves over 50 of China's most viewed websites by ICPs, portals, corporations and government agencies. ChinaCache currently has 51 server nodes installed in over 30 cities throughout China. By moving electronic content and applications closer to its clients' end users, ChinaCache allows its clients to improve the end-user experience, boost reliability and scalability and reduce the cost of their e-business infrastructure. For more information, visit http://www.chinacache.com.

About JAFCO Asia

JAFCO Asia is one of the leading brands in the venture capital industry in the Asia-Pacific region. Its primary focus is to invest in promising technology enterprises with high-growth potential. Established since 1990 and with offices in Singapore, Hong Kong, Beijing, Taipei and Seoul, JAFCO Asia had managed in aggregate more than US$850 million in funds with a track record of over 330 portfolio companies and over 220 exits, of which more than 80 have been publicly listed. JAFCO Asia's parent company, JAFCO Co., Ltd. ("JAFCO"), listed in Tokyo's Stock Exchange, is the pre-eminent Japanese venture capital manager with more than US$2.5 billion capital committed worldwide. Globally, JAFCO has invested a cumulative total of more than 2,900 companies of which more than 730 have gone public. In recent years, JAFCO's portfolio companies have accounted for about 20% of all IPO in Japan. Nomura Group, JAFCO's largest shareholder, is Japan's largest securities house with a web of offices in 28 countries. For more information, please visit www.jafcoasia.com.

About Intel Capital

Intel Capital, Intel's venture investment program, focuses on making minority equity investments to grow the Internet economy in support of Intel's strategic interests. Intel Capital invests in hardware, software and services companies in several market segments, including computing, networking, and wireless communications. Intel Capital has invested more than US$4 billion in approximately 1,000 companies in more than 30 countries since 1991. Since its inception, about 160 portfolio companies have been acquired by other companies and another 150 have gone public on various exchanges around the world. Intel Capital employs investment managers in about 25 countries worldwide. Last year alone, Intel Capital invested more than US$130 million in about 110 deals with approximately 40 percent of its investments made outside the United States. For more information, visit www.intel.com/capital.

About Investor Growth Capital

Investor Growth Capital Asia (IGC Asia) Limited is a wholly owned subsidiary of Investor AB that advises on several investment funds held by Investor AB or its subsidiaries. IGC Asia's primary focus is in technology venture capital investment in Greater China, South Korea and Japan utilizing an active ownership philosophy. Registered and headquartered in Hong Kong, IGC Asia is a part of Investor Growth Capital, a private equity investment arm of Investor AB that manages $1.8 billion in global assets. Investor AB has been making private and public investments and actively working with its portfolio companies to maximize their value for almost 100 years. Today, Investor AB is Sweden's largest industrial holding company and a substantial, long-term shareholder in a number of global public companies. These "Core Holdings" are ABB, AstraZeneca, Atlas Copco, Electrolux, Ericsson, Gambro, OM, Saab AB, Scania, SEB and WM-data. For more information, visit http://www.investorab.com.