Major Shareholder:

• Arcontech Corporation (8097) ¡V 67.34% interest

Company Subsidiaries:

• Satellite Devices Ltd (100%): Design, development and sale of location-based technology devices and applications.
• New Era Telematics Ltd (49%): Development and distribution of in-vehicle and ancillary products and provision of ancillary services
• Telematics Systems Ltd (40%): Sales of vehicles positioning systems and in-vehicle telematics units.

The Group is an independent provider of location based technology solution and innovations. Leveraging on its expertise in market available GPS hardware, knowledge and innovations of location based technology applications, the Group integrates third part core semiconductor chipsets offered by worldwide GPS chip manufacturers with its proprietary device level embedded software and external user software to offer users a range of location based technology application.

The Group utilize four core component technologies to implement its location based technology solutions and products: (1) GPS, (2) Wireless communication, (3) Dead-reckoning technology, (4) GIS, etc.

The Group focuses on the design and development of location based technology innovations and solutions. The Group integrates third party core semiconductor chipsets offered by worldwide GPS chip manufacturers with its device level embedded software and external user software to offer users a range of location based technology solutions. The Group then markets and introduces these proprietary solutions it has developed for commercial use.

Public bus sector in Hong Kong. The Group is in discussion with a number of public bus companies in Hong Kong in respect of providing fleet management and location-based advertising systems to be installed in buses operated by these companies.

A major golf club and resort in the PRC. The Group is in discussion with a major golf club and resort in the PRC in respect of providing auto-navigation system and multi-media advertising systems to be installed in golf carts used in this golf club.

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

• Location �based technology expertise
• Integration of GPS and GIS applications
• IP library
• Highly qualified engineering professionals
• Corporation culture that fosters innovation

• The Group has a limited operating history
• Future growth may strain existing management and resources of the Group
• The Group depends on its key executives and qualified personnel
• The Group may have limited IP protection.
• The Group intends to rely on its sales agents to distribute certain location-based technology products in certain regions

Location based technology has already gained worldwide popularity and proven its wide application for specific industries and general consumers. The Group has already built up a series of location based technology solutions and innovations. In future, the Group intends to devote further resources to:

• Integrate additional features into its existing fleet management, auto-navigation and personal tracking systems such as 3G wireless communications, Internet multimedia interactivity, PDA and handheld device-enabled access.
• Incorporate and promote m-commerce, in particular location based advertising applications, into its existing solutions; and
• Explore the potential of public intelligent transportation systems.

For these purposes, the Group will devote additional R&D resources and sales and marketing efforts to pursue its product development roadmap as well as customer penetration.

The net proceeds from the Placing, after deducting the related expenses, are estimated to amount to approximately HK$25 million (based on the offer price HK$0.44 per share). The Group at present intends to apply the net proceeds as follows: