Legend, AOL Form Joint Venture

Legend, AOL Form Joint Venture

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Legend Holdings Limited, the leading Chinese PC manufacturer, and America Online (AOL), the world's leading interactive services provider, Monday announced the establishment of a joint-venture company that will develop consumer interactive services for the Chinese market.

Legend will have 51 percent of the stakes of the joint venture, and AOL will hold the other 49 percent. The joint venture will be capitalized at about 200 million U.S. dollars, with each party contributing some 100 million U.S. dollars over time.

The new joint venture will be operating on the basis of the FM365, a former child company of Legend based in Hong Kong, and will, in the near future, provide interactive service consultations and technical support for Legend FM, a local Chinese company wholly-owned by Legend's parent company that holds an ISP permit.

Legend is the leading personal computer manufacturer and a major interactive services provider in China. In 2000, the Legend brand of PCs accounted for 39 percent of China's consumer PC market.

As the world's leading interactive services company, AOL has more than 29 million members in 17 countries and regions around the world.