SOUTHERN CHINA SECURITIES ACQUIRES 5% EQUITY POSITION

Released_By: USANews
Date: 7/7/98
Time: 3:46:01 AM

For_Immediate_Release

Chancellor Corp. (CELR): Mr. Ronald Sparks, Chairman of Chancellor Corp. today announced that Southern China Securities Co., Ltd., a major Beijing based securities firm, has acquired a five (5%) percent equity interest in the Beijing Dadu Jockey Club project from Zhida Development Co. Ltd.

Prior to this acquisition; Zhida owned a ten (10%) percent interest in the joint venture with Chancellor Corp. owning ninety (90%) percent. Chancellor will continue to control ninety (90%) percent of the joint venture.

Final negotiations will determine the schedule of payments of the cash purchase which will be announced after January 19, 1998. Mr. Sparks indicated that this equity financing will enable Chancellor Corp. to move forward immediately on the previously announced Lottery/OTB, Race Track and the groundbreaking for the Dadu Beijing Jockey Club.

For Investor Relations, contact Donna Silverman at inbeijing@aol.com, telephone (973) 398 2758

"The significance of the acquisition," stated Sparks, "is the worldwide endorsement it gives to the Beijing Dadu Jockey Club project. Southern China Securities is a major Chinese investment firm, holding seats on both the Shanghai and Shenzhen Stock Exchanges. Our association with this premier Chinese investment banking firm will enable Chancellor to attract additional financing as well as work within the Chinese system to development our varied business interests."

For Further Information: Chancellor Corporation, Donna Silverman, Investor Relations, Email: inbeijing@aol.com http://www.celr.com

Telephone: 973.398.2758 Facsimile: 973.398.9630