The Infinity I-China Fund and CSVC Invest $73 Million in the Leading Information...

The Infinity I-China Fund and CSVC Invest $73 Million in the Leading Information Technology Company Digital China

The Deal Further Fortifies the Infinity I-China Fund Bridge
Linking Israeli and Chinese Companies
TEL AVIV, Israel & HONG KONG--(Business Wire)--
The Infinity I-China Fund, the leading Israel-China Fund,
announced today that, together with its partner China Singapore Suzhou
Industrial Park Ventures Co. Ltd. (CSVC), it has led a 500RMB million
($73 million) investment round in Digital China Information Technology
Service Co. Ltd. (DCITS).

A spin-off of Digital China Holdings Limited (DC - Stock code:
861.HK), the leading IT (Information Technology) company in China,
DCITS is a leading provider of Information Technology (IT) services in
China. It is principally engaged in the software and IT services
business, including the provision of systems integration services,
application software development, maintenance and outsourcing, as well
as consultancy and training services to major customers, including
government, telecom and the finance sector.

"DCITS is the largest and most prominent company in which the
Infinity I-China Fund has ever invested; and, Digital China is the
strongest domestic brand in China's IT industry. Its market presence
within major accounts in government and industry, execution
capabilities, strategy as well as an unrivaled management team, all
put DC and its spin-off in a clear leadership position. Our $15M
investment in DCITS makes Infinity a partner in this great company.
Moreover, this deal marks a major milestone in Infinity's
implementation of its core strategy, essentially investing in leading
Chinese companies which can also help Israeli and other foreign
companies penetrate the Chinese market. With this new investment, such
IT companies now have a natural partner in China," said Avishai
Silvershatz, managing partner of the Infinity I-China Fund.

The spin-off process of DCITS, which used to be DC's software and
service arm, marks the next phase in the evolution of China's IT
industry, shifting the focus from hardware distribution to providing
solutions based on software and services.

"We have been working closely with DC's management for over a
year. These relationships combined with the existing bond between DC
and our Chinese partner, CSVC, made this unique opportunity accessible
to us," said Mr. Amir Gal-Or, managing partner of the Infinity I-China
Fund.

Mr. Fei Jianjiang, managing director of the Infinity I-China Fund,
added, "This high-profile deal demonstrates the strength and the depth
of the brand and network of Infinity I-China and CSVC in China."

"This investment marks another major step in building our presence
in China and in advancing the cooperation between Israeli and Chinese
companies," said Mr. Avi Fischer, deputy chairman, IDB Group and
chairman of the board of the Infinity I-China Fund.

About Infinity I-China Fund

Infinity, founded by Clal Industries and Investments Ltd. from the
IDB group, is one of the leading Israeli-related funds managing more
than US$600 million and a portfolio of 45 companies. Since June 2005,
Infinity has had 14 successful exits. The Infinity I-China Fund, the
newest Infinity fund, is the largest fund that focuses on
Israeli-Chinese related opportunities and serves as a bridge for
Israeli-Chinese business initiatives and for other non-Chinese
companies interested in doing business in China. The fund attracts
high profile investors around the world, including IDB in Israel and
the China Development Bank in China. The Infinity I-China Fund has a
highly experienced international team spanning the globe with offices
in Tel-Aviv, China mainland, Hong Kong and New York. For more
information: www.infinity-equity.com. To schedule an interview, please
contact Marjie Hadad, media liaison at marjie@netvision.net.il or call
+972-54-536-5220.

About CSVC

China-Singapore Suzhou Industrial Park Ventures Co., Ltd (CSVC)
was founded on 28th November, 2001 with a registered capital of 1.73
billion RMB. CSVC is a leading venture capital player focusing on
semiconductor and micro-electronics, software, new materials, bio-tech
and new energy industries with a portfolio of more than 45 companies.
CSVC is a wholly owned subsidiary of Suzhou Venture Group (SVG), one
of the largest players in the investment field in China with assets
under management of more than 10 Billion RMB.

About DCITS

DCITS, a leading provider of Information Technology (IT) services
in China, is a spin-off of Digital China (DC), the leading domestic IT
company in China. Headquartered in Beijing, DC has $4.5 B in revenues
and regional centers in 19 major cities in China. DC focuses on three
major business segments: Systems Integration, IT Services and
Distribution of IT products. DC distributes a vast range of IT
products through a network of more than 9,000 resellers and agents
across the country. DC was spun off from the Legend Group (together
with Lenovo) and has been independently listed on the Hong Kong Stock
Exchange since 2001.

for The Infinity I-China Fund
Marjie Hadad, +972-54-536-5220
Media Liaison
marjie@netvision.net.il

Copyright Business Wire 2008