PAC CHALLENGE<0166> - Announcement

The Stock Exchange of Hong Kong Limited takes no responsibility for 
the contents of this announcement, makes no representation as to 
its accuracy or completeness and expressly disclaims any liability 
whatsoever for any loss howsoever arising from or in reliance upon 
the whole or any part of the contents of this announcement.

Pacific Challenge Holdings Limited
(incorporated in Bermuda with limited liability)

COMPLETION ON CHANGE OF SUBSTANTIAL SHAREHOLDERS

The Board of Pacific Challenge Holdings Limited is pleased to 
announce that the Agreement has been completed on 15th March, 2000. 
Three new Directors nominated by E1 have been/will be appointed, 
and three existing Directors have resigned upon completion of the 
Agreement.

Completion of the Agreement

The board of directors (the ``Board'') of Pacific Challenge 
Holdings Limited (the ``Company'') is pleased to announce that the 
agreement (the ``Agreement'') entered into on 18th February, 2000 
between the then substantial shareholders of the Company, namely 
Roseville Management Limited, Roseville Investments Services 
Limited and Roseville Consultant Limited, and E1 Media Technology 
Limited (``E1''), as referred to in the announcement of the Company 
dated 19th February, 2000, has been completed on 15th March, 2000. 
Upon completion of the Agreement, Super Drive Inc., a wholly owned 
subsidiary of E1 which holds 71,664,000 shares of the Company 
(approximately 30% of the existing share capital of the Company), 
has become the single largest shareholder of the Company.

Change of Directors

Dr, Lily Chiang (``Dr. Chiang''), Ms. Chan Yim Fong, Teli (``Ms. 
Chan'') and Mr. Shah Tahir Hussain (``Mr. Shah''), as nominated by 
E1, have been/will be appointed as directors of the Company (the 
``Directors''), and Mr. Yu Shin Gay, Joseph (``Mr. Yu''), Ms. Lui 
Yee Man, Brenda (``Ms. Lui'') and Mr. Hui Chung Yee, Richard, the 
then Directors, have resigned as Directors. Mr. Yu and Ms. Lui will 
remain as directors and employees of the subsidiaries of the Company. 
Dr. Chiang and Ms. Chan have been appointed as chairman and director 
of the Company respectively with effect from 15th March, 2000, and 
Mr. Shah will be appointed as Director on or about 27th March, 2000.

Information on E1

E1 is principally engaged in the development and provision of 
Internet, multimedia and e-commerce related cutting edge 
technology solutions in the Greater China region and worldwide. It 
was founded by Dr. Lily Chiang (``Dr Chiang'') with a vision to 
create an ``Technology Idea Lab'' which provides the total solution 
needed to rapidly introduce innovative Internet and multimedia 
related applications to Asia Pacific and worldwide. In addition to 
relying on its existing research and development staff, E1 is also 
keen on transforming technologies developed within tertiary 
institutions into funded ventures with commercial applications.

The shareholding interest of E1 is being held as to 60% by Peace 
City Development Limited (which is majority owned by Dr. Chiang), 
20% by Hikari Tsushin Partners II, L.P of the Hikari Tsushin Group 
in Japan, 16% by Cable & Wireless HKT IMS Limited, a subsidiary of 
a company listed in Hong Kong, 2% by Online Credit International 
Limited, a company listed in Hong Kong, and 2% by Pacific Challenge 
Technology Capital Limited, a subsidiary of the Company.

Future Plans of the Company

The Company intends to increase its emphasis on fee-based income, 
versus traditional brokerage activities, which are expected to face 
reduced commission levels in the coming years. The Directors also 
believe that the alliance between E1 and the Company will facilitate 
an increased focus of the Company on the Internet business in the 
future.

By Order of the Board 
Pacific Challenge Holdings Limited 
Wong Cheuk Ling, Elain 
Company Secretary

15th March, 2000