Contact: Madonna Jarrett
Deloitte Touche Tohmatsu
Director, Global Corporate Communications
+1 212 492 3738

New York, September 1, 2005 —  Deloitte Touche Tohmatsu China today announced a merger with Pan-China Schinda, one of the top CPA firms. This is the second merger for Deloitte China in the Mainland this year. The first merger effective 1 June 2005 was between Deloitte China and Beijing Pan-China CPA Ltd.

Mr. William G. Parrett, CEO Deloitte Touche Tohmatsu said, "China is a strategic market for Deloitte. Within the next five years Deloitte China will more than double its head count to over 10,000 and with the continued growth of the China market we expect it to be the second largest of the Deloitte member firms, behind the U.S. within the next decade. This merger is another step to achieving this target."

In describing the significance of this merger to the global market, Mr. Parrett said, "the merger is strategically important as it will enable Deloitte China to better serve businesses from the Europe, Latin America, the USA and other parts of Asia that are heavily investing in China, in addition to local companies."

The announcement comes at a time when the Chinese economy nears double digit growth and domestic enterprises are accelerating their pace of internationalization, providing immense opportunities and challenges to the country’s accounting profession. Shenzhen is a major city in the Pearl River Delta enjoying exponential economic growth and business development.

Commenting on his firm's latest transaction, Mr. Peter Bowie, CEO, Deloitte China said, "The opportunities for accounting firms in Southern China are significant given the economic development, the restructuring of Chinese enterprises, as well as the increasing number of Chinese companies planning to venture into the global markets. He continued, "The integration with Pan-China Schinda is part of our ongoing commitment to provide top quality services to our clients. Our Shenzhen practice will become the largest accounting firm in Shenzhen after the merger. It also means that we will be bigger, stronger and better than ever in Southern China."

Pan-China Schinda is recognized as one of the best accounting firms in Shenzhen and indeed in China. They have quality professionals who are experienced in serving large state-owned enterprises, listed companies, financial institutions and local Chinese clients. Its founder and managing partner, Chu Qiheng, is an experienced accountant who is highly respected in the industry for his high professional standards.

Mr. Chu Qiheng, founder and Managing Partner of Pan-China Schinda said, "The decision to merge with Deloitte, marks a major turning point in all our careers. It is the right decision because it allows our partners and people to further develop their professions in a sustainable way." He continued, "As Shenzhen celebrates its 25th anniversary as a Special Economic Zone, our merger with Deloitte is in line with the Shenzhen Municipal Government's push toward 'bold reform, innovation and market liberalisation.'"

Chu Qiheng will serve as Vice Chairman of Deloitte China, as a member of the Board as well as Managing Partner of Deloitte Shenzhen. Deloitte and Pan-China Schinda will formally integrate their people and business on September 1 and move into bigger offices later this year.

Almost 500 additional professionals and other staff have joined Deloitte China through the two mergers.

About Deloitte
Deloitte refers to one or more of Deloitte Touche Tohmatsu, a Swiss Verein, its member firms, and their respective subsidiaries and affiliates. Deloitte Touche Tohmatsu is an organization of member firms around the world devoted to excellence in providing professional services and advice, focused on client service through a global strategy executed locally in nearly 150 countries. With access to the deep intellectual capital of 120,000 people worldwide, Deloitte delivers services in four professional areas — audit, tax, consulting and financial advisory services — and serves more than one-half of the world’s largest companies, as well as large national enterprises, public institutions, locally important clients and successful, fast-growing global growth companies. Services are not provided by the Deloitte Touche Tohmatsu Verein, and, for regulatory and other reasons, certain member firms do not provide services in all four professional areas.

As a Swiss Verein (association), neither Deloitte Touche Tohmatsu nor any of its member firms has any liability for each other's acts or omissions. Each of the member firms is a separate and independent legal entity operating under the names "Deloitte," "Deloitte & Touche," "Deloitte Touche Tohmatsu" or other related names.