October 16, 2002

News Release: Company Announces Increase in Sales of Over 150% From Last Year

Tengtu International Corp. (OTCBB:TNTU), a developer, marketer, distributor and integrator of distance learning solutions and e-education software, announced today year-end profit and revenue growth for the fiscal year ended June 30, 2002. (All fiscal 2001 numbers are restated figures for comparisons. See the section for 2001 restatement below.)

Fiscal 2002 Performance

Sales for the fiscal year 2002 rose to $14,255,417 compared with $5,566,039 for fiscal 2001, a 150% increase from last year's level. Tengtu reported a full year net profit of $1,578,108 compared with a net loss of $ (293,169) a year ago. This net income represents $0.03 per share based on 49,880,494 basic shares outstanding in fiscal 2002 and compared with a net loss of $ (0.01) per share on 24,977,353 basic shares outstanding in fiscal 2001.

The Company experienced strong sales growth in 2002 with the continued success of the Operation Morning Sun project in China. In fiscal 2002, Tengtu China installed 7,292 Total Solution platforms for a total revenue of $11,293,251 or 79% of sales. Tengtu China also installed 3,245 sets of satellite equipment for $1,675,197 and sold 1,748 resource CDs for $109,892. Sales of other e-education products and services, such as system integration projects, through Tengtu China, were $1,067,753.

"Fiscal year 2002 results represent a substantial increase in revenues over 2001 and indicate a healthy and growing company well positioned to meet the opportunities in the year ahead," stated John D. Watt, Tengtu International Corp's President. "At the same time as the Company was executing record sales, it was managing its consolidation of the opportunities to operate China's national e-education portal and several provincial portals. This will add new revenue streams to the Company's future performance and growth."

"The restated annual statement for 2001 and the first three quarters of 2002 were related to an inclusion of a VAT tax in sales. These adjustments have no material effect on the ability of the Company going forward," concluded Mr. Watt.

"We are managing tremendous growth and increased demand for Tengtu products and services across China's education market," stated Chairman and CEO of Tengtu China, Fan Qi Zhang.

"The Company has reorganized its operations in China in fiscal 2002 to better address the expanding market opportunities. We will strive to attain and maintain a dominant market position with our products, services, innovations, and strategic alliances. Tengtu's alliance with the National Center for Audio Visual Education (NCAVE) and key provincial centers will allow the Company to expand its distribution of products and services while addressing the market needs for K-12 e-education throughout China," Mr. Zhang concluded.

Restatements of 2001 Annual and 2002 Quarterly Results

Tengtu also filed restated annual financial statements for the fiscal year 2001 and quarterly financials for the first three quarters in fiscal 2002. The restated financials were primarily due to the inclusion of a VAT tax in the revenue numbers. All numbers are rounded to the nearest thousand.

The net effect of the restatement for the fiscal year ended June 30, 2001 is as follows: (i) a decrease in sales of $647,000 from $6,213,000 to $5,566,000; (ii) a decrease in gross profit of $712,000, from $3,122,000 to $2,410,000; (iii) an increase in other income of $315,000, from $633,000 to $948,000; (iv) a decrease in net income (loss) of $397,000 from $104,000 to ($293,000); and (v) a decrease in earnings (loss) per common share of $0.016 basic and diluted to ($0.012) basic and diluted.

The net effect of the restatement for the quarter ended September 30, 2001 is as follows: (i) sales decreased by $493,000, from $3,734,000 to $3,241,000; (ii) gross profit decreased by $405,000, from $2,465,000 to $2,060,000; (iii) total other income/(expense) increased for the quarter ended September 30, 2001 by approximately $405,000, from expenses of $119,000 to income of $287,000; (iv) Minority Interest in Subsidiary's Loss decreased to $0 from $159,000 due to the restatement of the Company's 10K for the year ending June 30, 2001; (v) net income increased by $159,000, from $705,000 to $864,000; (vi) earnings (loss) per basic common share increased by $.004 basic from $.015 to $.019 and $.003 per diluted common share from $0.014 to $0.018.

The net effect of the restatement for the quarter ended December 31, 2001 is as follows: (i) sales decreased by $675,000, from $4,736,000 to $4,061,000; (ii) gross profit decreased by $556,000, from $2,935,000 to $2,379,000; (iii) total other income/(expense) increased by approximately $556,000, from expenses of $75,000 to income of $481,000; (iv) net loss decreased by $12,000 from $19,000 to $7,000; (v) earnings per share did not require an adjustment and remained as originally reported; (vi) Minority Interest in Subsidiary's Income decreased by $12,000 from $648,000 to $636,000.

The net effect of the restatement for the quarter ended March 31, 2002 is as follows: (i) sales decreased by $492,000, from $3,486,000 to $2,994,000; (ii) gross profit decreased by $405,000, from $2,574,000 to $2,169,000; (iii) Total other income/(expense) increased by $405,000, from expenses of $41,000 to income of $364,000; (iv) Net income was not restated and remained as originally reported; (v) earnings per share did not require an adjustment and remained as originally reported.

TENGTU-INTERNATIONAL CORP.
Consolidated Statement of Operations
                         FOR THE FISCAL YEAR ENDED JUNE 30,
                  2002       2001       2000        1999      1998
Total Assets  $27,734,300 $8,833,335 $2,407,842 $1,911,912 $2,871,926
Total Sales    14,255,417  5,566,039    358,026    624,121  3,223,170
Income (Loss)
  from Continuing
  Operations    1,578,108   (293,169)(4,701,285)(1,886,399)(4,402,014)
Income (Loss)
 from  Continuing
 Operations per
 Common Share       0.032      (.012)     (.225)     (.100)     (.234)

About Tengtu International Corp.

Tengtu International Corp. (www.tengtu.com) is a developer, marketer, distributor, and integrator of distance learning solutions and e-education software. Tengtu International Corp controls 57% of a joint venture with its China partner, Tengtu China. The JV (Tengtu) has been chosen by China's Ministry of Education to be the operating partner in the deployment of China's national education portal and distance learning network. Tengtu is a key player in "Operation Morning Sun," China's national initiative to make computerized education available to 250 million students in the country's 800,000 kindergarten through 12th grade (K-12) schools.

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Note: Portions of this press release include forward-looking statements made pursuant to the safe harbour provisions of the Securities Litigation Reform Act of 1995. Actual results could differ materially from the results discussed in this release and in the forward-looking statements contained herein for many reasons. Investors are cautioned that all forward-looking statements involve numerous risks and uncertainties, including but not limited to product development, product acceptance, licensing opportunities and general economic conditions. For more information concerning Tengtu International Corp., and risk factors that may affect its future results and may cause actual results to vary from results anticipated in forward-looking statements, investors should review the Company's public filings with the U.S. Securities and Exchange Commission.

Tengtu International Corp.
Anu Dhir, 416/963-3999

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