CIBT Business Update on SAR’s Effects on Operations in China
CIBT Canadian Institute of Business & Technology Corp. (“CIBT”), a subsidiary of Capital Alliance Group Inc. (TSX-V:CPT) and a leading business school providing academic degree programs, corporate and information technology training solutions in China, is pleased to provide a business update on the effect SAR’s on operations and enrollments in China.
On May 20, 2003, China’s leading daily newspaper, The People’s Daily, reported that Zhu Shanlu, deputy team leader of Beijing’s joint anti-SARS team stated that students in Beijing have turned to the low-case group. According to the statement, full-time schools reported no clinically diagnosed SARS cases among students for the 11 days prior to the statement. On June 5, a World Health Organization official stated that the SARS outbreak is “over its peak” around the world, including the hardest hit-country China.
“We have taken measures to reduce wages and costs during the period of government mandated school closures.” Toby Chu, president and CEO stated. “Based on the information we have available to us, we anticipate that the impact of the SAR’s outbreak on enrollment and gross revenue will be limited to the second quarter of this year. Although CIBT campuses were closed during May 2003, students enrolled in one to four year business programs naturally take a long-term approach to completing their education. We therefore anticipate a full return of CIBT students now that the government is permitting schools in Beijing to gradually reopen. This quiet period has allowed management to redirect its efforts to expand partnerships to four new cities outside Beijing. We anticipate this expansion will create immediate and long term opportunities.”
On May 26, 2003, CIBT School of Business General Manager, Shuai Yang, along with Chinese officials representing seven government offices attended a dinner at the Canadian Ambassador to China’s residence in Beijing. The purpose of the dinner was to express gratitude on behalf of Canadian institutions to the Chinese government for its support to a number of Canadian cultural and educational activities in China. In addition, this meeting was held to demonstrate the concern of the Canadian government for the well-being of Canadian educational institutions during the SARS crisis.
According to an investigation by the State Statistics Bureau, education is the most rapidly increased expense of urban consumption, with an average annual growth rate of about 20 percent. With the rapid progress of economic globalization in this century, and China’s entry into the WTO, China’s background of economic and social development has greatly changed, which means that Chinese education authorities must reconsider the mode of qualified personnel training and speed up the development of education.
Formed in 1994, CIBT has established itself as a prestigious institution of higher learning. Through its subsidiary, CIBT School of Business, comprising three campuses in Beijing, China, CIBT Canadian Institute of Business and Technology Corp. delivers foreign academic degree programs, career training and IT training solutions to thousands of students and corporations in China. Rated as one of the top ten foreign-owned MBA providers in China, CIBT is among the first institutions in China to receive official approval from the Academic Degrees Committee of the State Council to award foreign MBA degrees. CIBT’s Chinese joint venture partner, Beijing Polytechnic University, is a distinguished member of China’s Project 211, a project representing China’s top 100 institutions of higher education chosen to play a leading role in training China’s high-level manpower for the 21st century. Through agreements with international universities in Australia, Canada, the UK, Switzerland and Thailand, CIBT provides Chinese students and business executives the opportunity to study abroad. Major sponsoring corporations of CIBT’s training programs require KPMG, Ford Foundation, and Bank of China International.
On Behalf of the Board of Directors of CIBT.
President and C.E.O
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