Major Shareholder:

• Sean 7 Leo Assets Management Ltd ¡V 25.6% interest
• Intel Pacific Inc. - 12.06% interest

Company Subsidiaries:

• Akup Taiwan (100%): Custom-made solutions, constancy services, sale of hardware and software products incorporated in Taiwan.
• Akup USA (100%): Sale of software products in USA.
• Akup HK (100%): Sale of software products in HK.

The Group is engaged principally in the design, development, sale and implementation of standardized eCRM software solutions and the provision of IT-related consulting and training services for commercial enterprises in Asia, namely Taiwan, the PRC, Hong Kong and Singapore. With its origination form Taipei, Taiwan, the Group has set up office in Beijing, Shanghai, Guangzhou, Hong Kong and Singapore. As at the Latest Practicable Date, the Group employs 90 full time employees of whom more than 60 are IT professionals.

At the front end, the Group provides products, such as CT-Ware, CT-Web, CT-Approach, Web Personalizer and E-Mail Master, to enable companies to construct their own unified contact centre, making its possible for companies to communicate with their customers via all available channels such as telephone, fax, e-mail, and the web.

At the back end, the Group provides products, such as One to One Analyzer and Enterprise Analyzer for storage of customer profiles and behavior records, data mining for customer services and sales, customer knowledge building, campaign planning and initiating one-to-one marketing strategy.

IDC estimated that the revenue of the world wide CRM services market is expected to grow from approximately US$34.4 billion in 1999 to approximately US$125.2 billion in 2004, representing a compound annual growth rate of approximately 29.5%. While the IT services revenue as a whole is only expected to grow at a compound annual growth rate of approximately 11% over the same period.

In terms of revenue generated in 1999, IDC estimated that CRM operations management services represented the largest segment in the CRM services industry, which accounted for approximately 66.8%, and CRM implementation services became the second largest segment, occupying a share of approximately 19.5%. Furthermore, IDC expected CRM implementation services to be the second fastest growing segment, growing from approximately US$6,702 million in 1999 to approximately US$30.917 million in 2004.

IDC also forecasted the CRM services revenue in the Asia Pacific region (excluding Japan) to grow from approximately US$1,033 million in 1999 to approximately US$6,260 million in 2004, representing a compound annual growth rate of approximately 43.4%.

The Directors believe that the Group has the following competitive advantages:

• The Group provides integrated CRM to support CTI, Web collaboration, and data mining;
• The Group provides standardized CRM software packages which are easy to implement and maintain by its clients;
• The Directors believe that the Group is one of the first companies to engage in the provision of eCRM software products in Asia as the Group commenced such development in April 1998;
• The directors believe that the Group can obtain leverage in the reputation and marketing campaigns of its significant investors; and
• The Directors believe that the strategic alliances with Legend and other internationally renowned IT companies can further enhance the image of the Group in the CRM software industry.

• The Group's is over reliance on key personnel and experienced IT professionals, and major clients.
• Infringement of intellectual property rights is serious in China.
• The Group is obtained a history of operating losses.
• The Group is in uncertainty on future expansion.
• The competition of this industry is serious in China.

The Group's overall business objective is to become a leading CRM software provider in the Asia Pacific region, with particular emphasis on the Greater China Region. To achieve its objective, the Group will focus on maintaining and expanding its current client base by providing comprehensive e-business solutions to different industries and enhancing the competitiveness of its products by improving existing products and developing new products.

To further expand its distribution network in the PRC, the Group plans to set up offices in other major cities of the PRC, the Group targets to expand its marketing and distribution channels to North America, Korea, Japan, Malaysia and Australia. In order to establish "Akup" as a leading brand of eCRM products, the Group will continue its marketing and brand building campaigns to promote its products and corporate image.

In view of the rapid development of the IR technology, the Group will research and develop new eCRM software products ad continue to upgrade the functions of its existing software products to maintain its competitiveness in the market. In addition, to strengthen the Group's research and development capabilities, it plans to establish a software development centre in the PRC.

The Directors consider that potential business collaborations or alliances may include ISP and telecommunications companies for ASP business, multi-national IT companies for joint marketing of the Group's products, as well as educational institutes and constancy firms for CRM consulting and training services. The Group may also acquire other IT companies which upon acquisition may create synergy with the Group in CRM technology or in marketing and distribution of products.

The net proceeds from the Placing, after deducting the related expenses, are estimated to amount to approximately HK$26 million (based on the offer price HK$0.28 per share). The Group at present intends to apply film production business in China the net proceeds as follows: