CHANCELLOR CORP TO BUILD FIRST JOCKEY CLUB IN CHINA

Released_By: USANews Press Release Network
Date: 7/28/98
Time: 2:29:41 PM

For_Immediate_Release

CHANCELLOR CORP TO BUILD FIRST JOCKEY CLUB IN CHINA Chancellor Corporation and Zhida Development Co., Beijing, China have reached an agreement with Beijing Dongfang Hustai Company for the development and construction of the Beijing Dadu International Jockey Club.

The Dongfang Hustai Company, a major construction company, will provide all funds for the development and construction of the international Jockey Club. This will be the first private club facility approved for construction and will feature a world class horse racing track and training field as well as recreation, dining and entertainment with unique characteristics. The club will cover an area of 35,000 square meters, in one of the most desirable areas of Beijing.

Chancellor Corporation is the majority owner of Beijing Dadu International Jockey Club joint venture. China Southern Securities and Beijing Zhida Development Company are Chancellor's joint venture partners. Mr. Ronald Sparks of Chancellor Corporation stated that "We have the exclusive rights for this project as a result of over two years of negotiations with Chinese officials." The Beijing Dadu International Jockey Club Co. Ltd. will appoint a club management organization to begin the sale of memberships for the club. Memberships will be sold for a minimum $100,000 for each membership. Mr. Sparks added that "This will be the only club of its kind in China, and it is expected that membership sales will be very brisk, producing substantial revenues in this year."

Significant progress has been made in the company's effort to launch a "social welfare lottery', not unlike the lottery operation in other countries. Chancellor Corporation received a letter and legal confirmation certificate from the law offices in Beijing clarifying all of the licenses that have already been obtained. There are a total of 14 different ministries that approve this type of operation. All 14 licenses are in place, as stated on the legal confirmation certificate issued on June 25, 1998.

It is expected for this project to receive strong support from the people of China, with 30% of the gross sales going directly to Social Welfare. It is anticipated that the ground breaking for the Jockey Club will begin in August of this year. Chancellor Corp and Zhida Development Company will be make additional announcements as their projects develop.

The Company is featured on the Internet at USANews Stock Research Network. http://www.geraldsnet.com Chancellor Corporation Donna Silverman -Director Investor Relations (973) 398- 2758 Fax (973) 398-9630 E-Mail: inbeijing@aol.com

Any forward-looking statements in this release are made pursuant to the "Safe-Harbor" provisions of the Private Securities Litigation Act of 1995. Investors are cautioned that actual results may differ substantially from such forward-looking statements. Forward-looking statements involve risks and uncertainties including, but not limited to, dependence upon third party vendors, and continued government support of company products and services, continued growth in per capita disposable income and other risks.