Major Shareholder:

• Mr. Wo Wai Ming ¡V 37.01% interest
• Mr. Wai Lai Yung ¡V 17.8% interest

Company Subsidiaries:

• Kanhan (HK) (100%): Provision of communication software platform

The Group is engaged principally in developing and marketing a patented server based font technology for its real time on-line communications software platform of the Chinese language. The software serves users of web-browser residing on PCs, wireless PDS, 2 G and 3G mobile phones, TV set top box and users of conventional telephones. The technology enables real time translation of Chinese characters and characters of other languages into display for viewing on a wide variety of Internet devices.

Currently the HanWeb Publishing Server applies on real time on-line translation from simplified Chinese characters to Traditional Chinese characters, and vice versa. The level of accuracy is believed to be higher than the accuracy of existing translation software commonly found in PCs. Users benefit from not having to acquire Traditional and Simplified Chinese enabling software for their browser software and from being able to view Chinese content anywhere, anytime with any Web-enabled devices.

The Group's technology has been extended to a server based voice product. Using the text to speech technology, the voice product allows the generation of audible speech from websites in either Chinese or English. The voice product benefits enterprises by allowing business website information to be transmitted in audible speech to users of mobile telephones. It helps them promote good corporate citizenship by assisting the visually impaired to access the Web.

The HKSAR government award the Group an about for million dollar contract through a system integrator contract in September 2002 for the provision to about 220 web domains of government websites of a simplified Chinese interface, that uses the Group's HanWeb Publishing Server.

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

• Possession of a patented communications software platform technology ¡V HanWeb Font Technology;
• Access to a large and fast growing potential market among the approximately 111.34 million Internet users of the PRC, Taiwan, Hong Kong, Japan and South Korea in 2001;
• An established user base, including both government organization and large corporations in the PRC, Hong Kong and Taiwan;
• Characteristic of the International software technology industry;
• Established business relationships with reputable IT business partners;
• An experiencved management team consisting of the founder, Mr Mo and other Directors and senior staff who have with the Group from an early stage; and
• A strong research and development team of five software engineers

• Reliance on a limited number of customers;
• Limited operating history;
• Ability to attain profitability';
• Credit risks;
• Reliance on Shareholders loan s and Government Loans;
• Implementation of the Business Plan may not be successful;

The Group's business objective is to be one of the leaders in the Chinese and Asian language communications business in the PRC, Hong Kong, Taiwan, Japan, and Korea; to consolidate its position as a provider of Internet based publishing server software in Greater China; to establish the de facto standard of its patented HanWeb Font Technology in the web appliance industry; to become a well-known distributor of Internet-based voiced enabled telephony gateway software in Greater China; to become an information service gateway operator for mobile phone users in China whose languages use character script; and to apply this business model to other countries.

The Company believes the key success factor to the Company is the awareness of the government agencies and business enterprises in Greater China as well as those web appliance developers serving the Asian market, the requirement of providing information in both Traditional Chinese and Simplified Chinese interface and the importance of the accuracy of no missing information resulting from the shortcomings of the Internet access devices.

The Directors believe that HanWeb Font Technology is to be commercialized with maximum quality control to ensure quickest possible market penetration with minimal after sales service required. Diversity of the Group's products is to be offered in addressing requirements in different industry sectors.

The Directors believe its products are to be priced discerningly according to industry traits and technology platform. A prudent, discriminating pricing model will help the Company maximize short-term revenue while its innovative products are gradually finding their way to the mainstream market. The early adopters will mostly be project driven that can afford paying a premium of getting the work done. Pricing strategy for all markets is based on the number of web pages and the number of users a customer has.

The net proceeds from the Placing, after deducting the related expenses, are estimated to amount to approximately HK$14.7 million (based on the offer price HK$0.33 per share). The Group at present intends to apply the net proceeds as follows: