China Eastsea Business Software Ltd
03 March 2008

For immediate release

3 March 2008




                    CHINA EASTSEA BUSINESS SOFTWARE LIMITED

                                  (AIM: CESG)


         Investment in Ningbo Education Information Technology Limited


China Eastsea Business Software Limited ('China Eastsea'), which provides
information technology and business process outsourcing services, announces that
through its subsidiaries it has paid RMB3m (c. £211,864) to acquire a 60%
interest in Ningbo Education Information Technology Limited ('NEITL') from
Ningbo Government Bureau in China effective from 1 March. The main business
activity of NEITL is to provide the Ningbo Education Bureau ('NEB') with IT
outsourcing services relating to the provision of its education facilities.


Background to and Reasons for the Investment


NEITL was formed by NEB for the purposes of engaging in providing IT outsourcing
requirements for their education facilities in the city of Ningbo. Due to the
lack of technological knowledge and IT related resources, the business did not
perform as was originally planned. NEB is under pressure from the Chinese
government to provide 'up to date' IT education facilities leading to high
quality IT education so NEB considered the optimum way to provide such
facilities was to work with China Eastsea.


Currently, there are approximately 500 state schools under the jurisdiction of
NEB so NEITL will have the first right to receive and perform the IT contracts
for all of these schools in providing specialized training software, intranet,
wireless networking and all the equipment requirements.


As the minority shareholder of NEITL is the Ningbo Government, the directors of
China Eastsea consider this acquisition an important strategic co-operation
arrangement and that it should also further strengthen the Company's
relationship with the Ningbo Government.


Other than fulfilling the needs of state owned schools, private enterprise
funded schools will also need services from NEITL because of the requirement to
comply with single standard or the requirement to provide the same standard of
software throughout Ningbo education system.


Financial Information


In the year to 31 December 2007, NEIL made a pre-tax loss of RMB554,000 (c.
£39,124) on a turnover of RMB1,289,000 (c. £91,031). As at 31 December 2007,
NEITL had net assets of RMB1,445,000 (c. £102,048). The consideration of
RMB3,000,000 (c. £211,864) will be satisfied wholly in cash.


ENDS


Contacts:

China Eastsea                             Evolution Securities Ltd            Parkgreen Communications Ltd
David Tsui, Financial Director/CFO        Stuart Andrews                      Paul McManus
Tel: +86 574 2880 2289                    Tel: 020 7071 4300                  Tel: 020 7479 7933
Mob: +86 138 1668 5470                    stuart.andrews@evosecurities.com    Mob: 07980 541 893
david.tsui@eastseagroup.com                                                   paul.mcmanus@parkgreenmedia.com

Angie Chen, Company Secretary             Evolution Securities China Ltd
Tel: +86 10 6298 8850                     Ian Rice
angie@eastseagroup.com                    Tel: 020 7220 4879
www.sinobpo.com                           Mob: 07828 951 158
                                          ian.rice@evolutionchina.com



About China Eastsea

China Eastsea provides information technology and business process outsourcing
services (ITO/BPO), IT consulting and a broad range of project work to clients
in the petrochemical, petroleum, power and telecommunications industries, as
well as to ministries, state authorities, municipalities, agencies and other
organisations throughout the government sector in China. China Eastsea has a
leading position in petrochemical/petroleum IT outsourcing market with Sinopec
Zhenhai Refining & Chemical Company, one of the largest oil refining companies
in China, as its biggest client.


The services provided by the Group include strategic planning, gap analysis,
alignment, business and technology transformation, performance management and
technology selection and optimisation according to best practices. The Group
offers design, development, implementation, control and maintenance relating to
the use, creation, installation or integration of software, hardware, networks,
systems and technologies. It also provides total ERP solutions from design to
development, implementation, training and maintenance.


The Group has proprietary technology on a management platform provided over
internet, intranet and corporate portals, as well as on information integration.
The Group has successfully leveraged its expertise in search engines and
information management to build customised products to grow its government and
telecommunications IT outsourcing market share.


Financials

For the year ended 28 February 2007 China Eastsea recorded revenues of £8.79m
(2006: £4.36m) and pre-tax profits of £2.23m (2006: £1.28m). Basic earnings per
share rose from 1.82p for the year ended February '06 to 3.35p.




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