Major Shareholder:

• Mr. Chan Chung ¡V 41.0% interest

Company Subsidiaries:

• Mtel Limited (100%): Development and provision of mobile internet communication and related services in HK
• Mtel (Singapore) Pte Limited (100%): Provision of mobile Internet communication and related services in Singapore
• Mtel (Taiwan) Limited (100%): Provision of mobile internet communication and related services in Taiwan
• M Telecom Corporation (100%): Provision of liaison services in the US

The Group is a mobile data solutions provider engaged in the development and provision of mobile data solutions that enable mobile telecommunication operators, hardware manufacturers, IT-related companies including software/appliances developers and enterprises, such as financial institutions and media companies, to deliver data to users of various types of wireless terminals including pocket personal computers, mobile phones and PDAs.

The Group provides wireless data platforms and wireless solutions, which are capable of leveraging existing and future telecommunication networks to deliver data via various types of wireless terminals. The Group's mobile data solutions facilitate its customers to overcome the existing technology hurdles and enable them to expand their business into the mobile data market to provide advanced telecommunication services over the wired and wireless networks.

The Group specializes in data and network technology including data routing, compression, acceleration, device-specific reformatting, security and multiple application integration. The Group places great emphasis on the continued enhancement of its existing mobile data solutions and development of new mobile data solutions, so that the Group's existing and new mobile data solutions will be in line with the latest technological changes, including the development of 3G and market needs with a view to increasing the Group's market share.

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

• The Group has developed interactive technology that accelerate transmission speed of content and applications for wireless terminals in the existing wireless 2G or 2.5G networks, such as GSM, GPR, CDMA and TDMA;
• The Group has established a regional distributions system of mobile data in China, Hong Kong Macau, Taiwan and Singapore by utilizing the Group's mobile data platform across mobile telecommunication operators.
• The Group is one of the mobile data solutions providers that has deployed a global roaming system in China, Hong Kong, Macau, Taiwan and Singapore. Subscribers osf the Group's MobileSurf services can access Internet to receieve their personal account information and local content via wireless terminal.

• Reliance on business with the Group's connected persons and subsidiaries or associates of Significant Shareholders;
• Dilution effect on shareholding of Pre-IPO Share Option scheme, Other options and the Issued convertible Notes;
• Failure to comply with financial covenants of the Convertible Notes and limitation on growth by financial covenants of the convertible Notes;
• Failure to meet the funding requirement for the early redemption of the issued convertible notes;
• History of operating loss;

The mission of the Group is to become one of the major mobile data solutions providers in the Asia Pacific region and the Group aspires to achieve the following business objective;

• To continue to enhance the quality of its existing mobile data solutions and products and developing new mobile data solutions and product by conducting R&D on the advanced mobile data solution and products;
• To expand the Group's geographical coverage through strategic investment, business collaboration and establishment of sales and technical support offices to increase the competitiveness of the Group; and
• To increase the Group's marketing effort to enlarge the customer base of the Group;

The net proceeds from the Placing, after deducting the related expenses, are estimated to amount to approximately HK$26.0 million (based on the offer price HK$0.3 per share). The Group at present intends to apply the net proceeds as follows: