SPACEPORTEDUTAINMENT NEWS ROOM PRESS RELEASE:

SpacePortEdutainment signs Joint Venture Agreement
for US$250m theme park project in China

Cape Town, South Africa – May 5, 2005 -- SpacePortEdutainment, a South African company with the global vision to build world-class space, science and technology theme parks, has signed a joint venture agreement with the City of Shenyang’s Shenyang Qipanshan Tourism Development Zone Group Company and Liaoning Rexing Enterprises Group Company Limited, to build a US$250m space theme park (dubbed a “SpacePort”) in China. It is scheduled to open in time for the Beijing Olympic Games in 2008. The agreement provides for the formation of a joint venture company which will first initiate a R2.5m feasibility study and subject to a positive outcome, continue to source funding and thereafter develop the theme park. The signing of the agreement concluded the visit to South Africa in April of the high-level Chinese Delegation.

SpacePortShenyang is the first of several SpacePorts that are in the pipeline. Shenyang, a major Chinese city of some 7m people, is hosting the football and hockey competitions during the Olympics in Beijing. The next planned site is SpacePortAfrica, a US$75m project that will form part of “Africa Theme Park Resort”, a US$650m theme park resort development near Johannesburg International Airport. SpacePortAfrica is due to open in October 2007, while the Resort will be completed by end 2008.

“The idea is to produce the Concept and Master Plan and the computer-animation and special effects in South Africa, and then to license this to sites around the world,” explains Raoul Katovsky, CEO of SpacePortEdutainment, “The parks will be themed around Outer Space, space tourism and new and cutting edge technologies with thrill rides and high speed rollercoasters, interactive attractions and educational experiences. The adjoining not-for-profit SpacePort Institute will be a centre of excellence for learning about space, science and technology.”

Dutch-born Hans Deuze, an internationally renowned theme park consultant, has joined SpacePortEdutainment as head of operations and development. Deuze was honoured with the prestigious Disney Imagineer title both in his capacity as Senior Manager: Live Show Design at Disneyland Paris Resort and as consultant to Walt Disney Studios. The economic implications for South Africa will be substantial. More than 500 jobs will be created in Cape Town’s film industry, particularly in respect of computer animation. Significant foreign exchange earnings, the advancement of science and technology and the provision of a major tourist attraction for Johannesburg are also some of the reasons why people are getting excited.

Capital is being raised to fund SpacePortEdutainment’s share of the Shenyang feasibility study, further develop the Concept and Master Plan, expand the management team, and produce the content. Funding will be raised through obligor financing in respect of the dti’s Industrial Participation Programme, venture capital and private sector investments.

“We have received great support and interest so far from both the public and private sectors.” says Katovsky, “Now that the Shenyang Local Government have committed themselves to SpacePortShenyang, it’s all systems go."

Seen signing the SpacePortShenyang Joint Venture Agreement are (from left to right) Raoul Katovsky, SpacePortEdutainment’s CEO, Jiang Song Jie, Vice-Director, Administration Committee of Shenyang Qipanshan Tourism Development Zone Group Company and Jiang Ping, Chairman of the Board of Liaoning Rexing Enterprises Group Company Limited. Watching the signing ceremony are (back row from left to right) Danny Zhao, the delegation’s translator, Hans Deuze, SpacePortEdutainment’s Development and Operations Senior Vice President, Wang Tong, Division Chief, The Bureau of Foreign Trade Economic Cooperation Shenyang, Daniel Huber, SpacePortEdutainment’s Washington DC-based lawyer, and SpacePortEdutainment’s South African-based lawyer, Tiaan Jonker, a partner at Smit Sewgoolam Inc. Seen shaking hands after the signing of the SpacePortShenyang Joint Venture Agreement are (from left to right) Raoul Katovsky, SpacePortEdutainment’s CEO, Jiang Song Jie, Vice-Director, Administration Committee of Shenyang Qipanshan Tourism Development Zone Group Company and Jiang Ping, Chairman of the Board of Liaoning Rexing Enterprises Group Company Limited. Watching the signing ceremony are (back row from left to right) Hans Deuze, SpacePortEdutainment’s Development and Operations Senior Vice President, Wang Tong, Division Chief, The Bureau of Foreign Trade Economic Cooperation Shenyang, and SpacePortEdutainment’s lawyer Tiaan Jonker, a partner at Smit Sewgoolam Inc.