Neusoft Signs Agreement with SkillSoft for IT Courseware Localization and Distribution

Two Learning Leaders Join Hands to Tap Chinese e-Learning Market

Shenyang, China- Oct.11, 2003 --Neusoft Group Ltd., the leading software and solution provider in China, today announced a five-year partnership with SkillSoft PLC, a global provider of e-Learning content and software products for business and information technology professionals,which entitles Neusoft to become the sole localization and distribution partner of SkillSoft IT courseware in mainland China. This initiative marks an important advancement for Neusoft in the e-education and training solution business, one of Neusoft s three core businesses, and strengthens its position to capitalize on the inherent opportunity within China s e-Learning market.

China has witnessed fantastic growth in IT education and application as well as the cultivation of IT talents. Many organizations are now looking for ways to take advantage of web-based technology to develop comprehensive training solutions encompassing teaching and learning resources and learning management systems.

Neusoft s e-Learning Solution, comprised of SkillSoft s IT skills and certification courseware library and complementary products and services for assessment, learning management, and custom content, uniquely positions Neusoft to meet the market demand for web-based education and training resources and to energetically boost the development of China modern online education and training. Neusoft s industry-leading expertise in technology, customer relationships, sales, customer service offer clients the experience and support required for successful e-Learning solutions.

The Neusoft e-Learning Solution includes 1,000 IT courses totaling more than 4,000 hours of instruction. Courses span topics in software development, operating system and server technology, internet and networking technologies, enterprise database systems, web design and desktop computerskills. Courses reflect SkillSoft s commitment to high-quality, consistent instructional design and use the latest technologies to ensure rich, interactive learner experiences.

The Neusoft e-Learning Solution brings to customers a variety of benefits, including significantly reduced training costs, higher employee retention, increased employee productivity, and consistent training across geographically dispersed organizations. The solution has immediate applicability to both enterprise and government organizations, as well as academic institutions.

About Neusoft Group Ltd.

Neusoft originated from Northeastern University. In 1988, Dr. Liu Jiren, professor of Northeastern University (present chairman and president of Neusoft Group Ltd.) together with other two people started up his business with only three computers and thirty thousand yuan of research fund.

Through over ten year s development, Neusoft has grown into a software company which owns the first listed software company in China Neusoft Co., Ltd. and several other holding companies. With software technology application as its major business orientation and software as its core, Neusoft focuses on developing three main businesses, namely software and services (E-Solution), education and training (E&T Solution), and digital medical products (E-Hospital Solution).

With Neusoft Parks as its base and service platform for industry development, Neusoft has become a leading software enterprise integrating software research, design, development, manufacturing, selling as well as technical consultation and services.

As a leading software and solution provider, Neusoft now has nearly 6000 employees, registered capital of RMB1.224 billion yuan and a total asset of RMB3.8 billion yuan. It has built Neusoft Parks in the four cities of Shenyang, Dalian, Chengdu and Nanhai. and established subsidiaries in U.S., Japan and Hong Kong.

For more information, please visit us at: www.neusoft.com

About SkillSoft

SkillSoft PLC. (Nasdaq: SKIL) is leading global provider of comprehensive e-Learning content and software products for business and information technology professionals. Learning solutions offer powerful tools to support and enhance the speed and effectiveness of both formal and informal learning processes. These solutions integrate SkillSoft's in-depth courseware, learning management platform technology and support services to meet customers' learning needs.

SkillSoft was founded in 1998 and became one of the first companies to bring business skills training to the e-Learning environment. In September 2002, SkillSoft merged with SmartForce, an industry pioneer established in 1981 that focused primarily on IT training. SkillSoft focuses on meeting the comprehensive business skills and information technology learning needs of professionals in Global 5000 organizations through a comprehensive range of e-Learning solutions.

For more information, please visit www.skillsoft.com