EXHIBIT  99.1


                                 PRESS  RELEASE
                                 CATHAYONE, INC.


As  the result of a Special Meeting of the Board of Directors of CathayOne Inc.,
a Delaware corporation, the Company filed for voluntary bankruptcy under Chapter
11  of  the United States Bankruptcy Code in the United States Bankruptcy Court,
District  of  New  York  on  June  15  2001 where it was assigned File 01-41726.
Messrs  Peter  S Lau, CEO, and S David Cooperberg, President, were authorized to
execute  all  documentation  to  complete  such  filing  and to take any and all
further  necessary  action.

CathayOne  does not intend to continue its existing business.  The Company views
the  maximization  of value to be as a "corporate shell."  The Company therefore
intends  to  proceed  as  expeditiously  as  possible  to  resolve  outstanding
liabilities  and  obtain a funding source or investor so that it can emerge from
bankruptcy  as  a  clean  corporate  shell, and therefore maximize value for its
constituents.

Subsequent  to  the  Special  Meeting,  Phillip  Lee  Flaherty  announced  his
resignation  as  Chairman, Treasurer and Director of CathayOne, Inc., as well as
his  position as Chief Executive Officer of its subsidiary, Cathay Entertainment
Ltd.

The  Board extends to Mr Flaherty every best wish and good fortune in any of his
future  efforts  and  endeavors.