* Phuong Nam Corp aims to strengthen its brand and accelerate growth in its media, publishing, and retail business portfolio
* Indochina Capital debuts its first investment in evolving media industry in Vietnam
HCMC, 17th October, 2007 - Phuong Nam Corp and Indochina Capital today announced a long-term strategic partnership, with Indochina Capital holding a 25% ownership interest in Phuong Nam Corp.As a strategic investor, Indochina Capital has commited to work closely with Phuong Nam Corp, on a number of key business initiatives to further enhance the Company`s market leadership and brand image in the media industry in Vietnam
" our strategic alliance with Indochina Capital represents a very significant milestone for Phuong Nam Corp to further expand our business operation locally and internationally" said Chairman of Phuong NamCorp, Mrs Phan Thi Le."The deal also opens the door for us to develop new strategies and unleash the value of cultural experiences for Vietnamese people.It helps us to grow and compete succeessfully in an evolving media marketplace, which will eventually benefit our partners, stakeholders and end-users"
Indochina Capital Director and Portfolio Manager, Thomas J.Ngo commented : " Our investment underscores our recognition of Phuong Nam Corp as the clear market leader in Vietnam`s media industry.We have been very impressed with the highly experienced and talented management team and the Company`s track record of successes.More importantly, we view Phuong Nam Corp as best positioned to capitalize on the significant future growth opportunities in the dynamic and robust media industry in Vietnam.As this investment represents Indochina Capital`s first investment in a media company, we look forward with great enthusiasm towards the establishment of a long-term partnership between our two firms."

About Phuong Nam Corporation :
Established in 1982, Phuong Nam Culture Company had been a state-owned company belonging to Ho Chi Minh People`s Committee until 1999 when it was re-established as a joint-stock company.The company had an IPO and was listed in Ho Chi Minh Stock Exchange in 2005.
Phuong Nam business is engaged in production(or publishing) and retail commerce of cultural products including books( for entertainment and education), audio and video products(music and movie), printing, creative cultural services, and stationary.In 2006, the Company entered a joint venture with Envoy Media(an offshore company specialized in Media and Film Exhibition) to establish Megastar Media Company, which is one of the largest companies in film exhibition and distribution in Vietnam.In April 2007,Phuong Nam Culture made ajoint venture with EMHI(East media Holdings Incorporation) to form up PNBC(Phuong Nam Branch Corp) operating a nationalwide retail store chain selling Disney branded products.

About Indochina Capital
Founded in 1999, Indochina Capital, with approximately US$1 billion in assets under management, is an innovative leader in Vietnam`s rapidly growing financial markets.Indochina Capital is among the best-established and diversified Vietnam-focused investment firms managing funds in separate real estate and capital markets strategies focused on Vietnam.In addition, through a strategic investment in Mekong Securities, Indochina Capital can provide domestic broker-dealer and investment banking services to Vietnamese corporations
Indochina Capital Vietnam holdings Limited(ticker : ICVHLN), a US$500 million fund listed on the main board of the London Stock Exchange in March 2007, is focused on strategic investment in Vietnam`s leading companies across a wide spectrum of industries including agriculture, financial services, consumer products/retail, industrial, technology/telecommunications, healthcare, transportation, and natural resources.The investment approach of the fund is to be a strategic Investor to leading Vietnamese companies, providing a wide range of business and market support in key areas such as accounting/finance, sales and marketing, new product development, and access to capital markets
For further information, please visit www.indochinacapital.com

Media enquiries :
Phuong Nam Corp
Phan Ngoc Diem Han
Email : hanpnd@phuongnamvh.com
Tel : (848) 8663447

Indochina Capital
Nguyen Thuy Duong
Email : duong.t.nguyen@indochinacapital.com
Tel : (848) 9104855

AVC Public Relations
Phan Thi Cam Ly
Email : camly.phan@avc.com.vn
Teel : (848) 8222761