[January 05, 2005]

Tengtu International Awarded $9.6 Million RMB Contract in Shaanxi Province School Project

TORONTO and BEIJING --(Business Wire)-- Jan. 5, 2005 -- Tengtu International Corp. (OTCBB: TNTU) today announced that through Tengtu United Corporation it was awarded a RMB $9.6 million, or U.S. $1.2 million, contract for the installation of its software applications in the Rural Primary and Middle School Modern Distance Education Project organized by the Shaanxi provincial government. The project, conducted as part of the central government funded Western Rural Project, invited bids on October 25, 2004 to select a supplying contractor to install application software and computerized education resources in 5,784 schools participating under the initial phase of the Western Rural School Project for Shaanxi Province.

Tengtu was awarded the entire contract, which calls for the installation of office automation and class preparation software with relevant education resources. Under this contract, Tengtu is installing 5,784 units of its Education Resource for Microsoft(R) Office and 386 units of its Education Resource Library. Tengtu has already received 30 percent of its payment upon award of the contract.

These 5,784 schools are added to Tengtu's growing customer base in China's school system and represent downstream clients for additional Tengtu education resources and new generations of software applications. This contract represents only the 2004 phase of the five-year Western Rural Project for Shaanxi Province. By winning this contract and those in other provinces under the first year of the Western Rural Project, Tengtu gains significant advantages in successive years, having had its education resources and software already chosen as the preferred standard and applications for the school system. The Western Rural Project will cover 86,400 teaching sites and 283,000 primary, middle and junior high schools. Tengtu has been awarded in excess of 70 percent of the software contracts to date in this project.

"The Western Rural Project is an important program covering a majority of the schools in China in 19 provinces over a five year period. By winning the bids with these provinces, we can leverage this success to become the dominant brand and provider in China's k-12 classrooms, in both rural and urban markets," stated Dr Liu, chief executive officer of Tengtu United. "This project will modernize a significant customer base for additional Tengtu resources and solutions well into the future."

Established in 1996, Tengtu International Corp. is the leading provider of integrated education software and distance learning solutions in the People's Republic of China. Its wholly owned subsidiary has been chosen by China's Ministry of Education to be the operating partner in the deployment of China's national education portal and distance learning network (CBERC) to make computerized education available to 250 million students in China's primary and secondary schools.

For more information please visit WWW.TENGTU.COM. To be added to Tengtu's email list for company news, please send your email address to INFO@TENGTU.COM.

Portions of this document include "forward-looking statements", which may be understood as any statement other than a statement of historical fact. Forward-looking statements contained in this document are made pursuant to the safe harbor provisions of the private securities litigation reform act of 1995. These statements are based on management's current expectations and are subject to uncertainty and changes in circumstances. Actual results may vary materially from management's expectations and projections expressed in this document. Certain factors that can affect the company's ability to achieve projected results are described in the company's annual report on form 10-K and other reports filed with the Securities and Exchange Commission.

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