Pioneer Global Group Limited (formerly known as Pioneer Industries International (Holdings) Limited (stock code: 224)) has announced the creation of a TeleSites (also known as Carrier Hotels) joint venture named Global Gateway, with Morgan Stanley Real Estate Funds ("MSREF").

Global Gateway will develop a network of state-of-the-art carrier-neutral TeleSites in the primary telecom gateway cities around the Pacific Rim. The initial sites will include Hong Kong, Tokyo, Taipei, Seoul, Singapore, Los Angeles, San Diego, Seattle, Las Vegas and Tucson.

In order to provide a complete range of services, on a seamless, global platform to companies in the telecom, technology and internet sectors, Global Gateway will form a strategic alliance with MetroNexus, a leading Carrier Hotel operator in Europe and North America, to create the first truly global, branded, standardized network of Carrier Hotel today. MSREF is the majority shareholder in both companies.

[Location Map in Appendix]

A TeleSite is a specialized facility operated to provide telecom, internet and data management companies with the following services:
· Equipment hosting;
· Co-location;
· Cross - Connectivity; and
· Other add-on services

TeleSite was introduced in the US in the mid 90's which quickly turned into a 'hub' for many telecommunication and internet companies. TeleSites are also known as Carrier Hotels, Co-location facilities and Carrier Class Facilities.

Global Gateway will have initial equity capital of US$200 million, and it plans to invest US$600 to US$800 million in the Pacific Rim over the next 3 years. The joint venture is owned 20% by Pioneer Global Group and 80% by MSREF, investment funds managed by Morgan Stanley Dean Witter. The overall execution of strategies will be led by Pioneer's management. The Vice-Chairman of Pioneer, Mr. Goodwin Gaw, has been appointed the CEO of Global Gateway.

"Telecommunications is one of the fastest growing industries in the world today and the deregulation of telecom markets in Asia will offer new and exciting opportunities for industry players, in particular overseas operators. They will soon rush to Asia to capture the exploding new market growth and existing local operators will also expand to compete," Goodwin Gaw said.

[Projections of Bandwidth Demand in Appendix]

"Both new and growing telecom, internet and data companies need special infrastructure to support their businesses. But not just any facility would work. They need a TeleSite", he added.

The management team of Global Gateway has developed Carrier Hotels in US since 1993. They have been involved in more than 20 facilities in multiple gateway locations in the U.S., and have been at the forefront in developing new standards for TeleSite. The management team of Global Gateway currently operates more than half of all such facilities in Western U.S. (with an existing telecom customer base of over 150 telecommunications companies), the main gateway from the U.S. to Asia.

Michael J. Franco, MSREF's Director of U.S. Acquisitions and head of the global carrier hotel initiative, said: "The demand for seamless, global carrier hotel solutions is growing at an explosive pace in lockstep with the extraordinary growth of the Internet and telecom sectors. We are extremely excited about our carrier hotel platform and our ability to execute for the telecom industry with the highest quality standards. We are partnering with two very successful management teams which have a proven track record of performance for the telecom industry."

Eric Assimakopoulos, Chief Executive Officer of MetroNexus, commented: "Together with Global Gateway we are excited about providing the first truly global branded carrier hotel solution. This combined with the ability to leverage Morgan Stanley Dean Witter's leading global telecom/technology franchise and MSREF's leading global real estate execution capabilities, will place us in the forefront of the industry." "Morgan Stanley Real Estate Funds is a strong financial partner with a thorough understanding of the industry, contacts and resources within the capital markets, and ability and flexibility to react quickly. Together, MSREF, MetroNexus and Global Gateway will create a formidable team that will be able to bring continuity and branding to a very fragmented and underdeveloped industry", Goodwin added. On the same day, Pioneer Industries International (Holdings) Limited also announces a name change to Pioneer Global Group Limited to better reflect the new corporate focus.

- Ends -

Company Information:
Refer to the attached Company Profile

This press release is issued by Pioneer Global Group Ltd. through Forrest International. For further information, please contact:

Pioneer Global Group
Goodwin Gaw (Vice Chairman)
Kennth Gaw (Managing Director)
Alan Lee (Finance Director CFO)
Tel: 2526-6068

Forrest International
Rosemary Sayer/Sauw Yim
Tel: 2522-6475