Paul Hastings Wins Motion for Terminating Sanctions in High-Profile International Fraud Case

November 30, 2006

Paul Hastings Wins Motion for Terminating Sanctions in High-Profile International Fraud Case

Los Angeles, CA (Nov. 29, 2006) - Paul, Hastings, Janofsky & Walker LLP (Paul Hastings), a leading international law firm, won a motion for terminating sanctions on behalf of New World TMT Limited against Jianping "Tony" Qu, the CEO and majority shareholder of PrediWave Corporation and other PrediWave-related companies. Qu, PrediWave Corporation and the other PrediWave-related companies were all named as defendants in the action and represented by Latham and Watkins LLP.

The victory signals the conclusion of more than two years of litigation where New World TMT, a division of the Chinese conglomerate New World Group, was attempting to recoup $670 million it paid in investments and purchases for a one way "Video On-Demand" cable system that the U.S.-based PrediWave never delivered on. The lawsuit also contended that Qu, PrediWave and other PrediWave related companies knowingly engaged in actions aimed to defraud New World out of its investment.

The motion for terminating sanctions was issued in response to Tony Qu's admission in a declaration filed with the Court that he provided untrue testimony in at least two depositions and his subsequent violation of a court order that he appear for a deposition and Mandatory Settlement Conference. The trial had been scheduled to begin on Nov. 21 in the Superior Court of the State of California in Santa Clara when Judge Jack Komar granted the motion.

A default hearing to set the amount of compensatory and punitive damages will be scheduled at a future date. Counsel for New World believes that the total compensatory and punitive damages awarded will exceed $2 billion. The Court has also set a hearing for December 4, 2006 to determine whether to grant New World's motion for terminating sanctions as to PrediWave and the other corporate defendants. The Court has stated that its "tentative" ruling is to grant the motion against all the corporate defendants.

The Paul Hastings team, led by Los Angeles partner Dennis Ellis, included partners Ronald Oster and John Porter, and associates Joshua Hamilton, Katherine Murray, Miguel Sanqui and Jacob Risner. Hong Kong Partner Mohan Datwani and Of Counsel Robert San Pé led the team in Hong Kong that handled critical discovery proceedings in China that forced Qu to recant his testimony.

About New World TMT Limited: New World TMT is the Telecommunications, Media and Technology (TMT) flagship of the New World Group, one of Hong Kong's leading conglomerates. New World TMT has developed a wide range of holdings in the technology and media sectors. As an owner and operator of TMT companies New World TMT aims to use its innovative technology to serve the Greater China marketplace.

The Paul Hastings Litigation Department provides premier litigation services to clients facing complex legal issues in the U.S., Europe, South America, the Middle East and Asia. With more than 260 lawyers in the Litigation Department, in addition to 180 litigators in the Employment Department, Paul Hastings is well positioned to handle all aspects of a client's litigation needs. Our sophisticated litigation practice covers every major practice including securities, intellectual property, class action and employment litigation, international arbitration, and white-collar crime. The Litigation Department has an impressive track record of winning large and difficult cases.

Paul Hastings Janofsky & Walker LLP, founded in 1951, is a leading international law firm with over 1,100 attorneys in 18 offices. The firm serves a diverse client base including including many of the leading global financial institutions and Fortune 500 companies and offers deep capabilities in Banking and Finance, Capital Markets, Corporate/M+A, Litigation and Dispute Resolution, Intellectual Property, Project Finance, Investment Management, Real Estate, Labor and Employment and Tax Advisory Services. For additional information, please visit our website at www.paulhastings.com.