Major Shareholder:

• Mr. Fok Tung Ling ¡V 60.0% interest
• Mr. Zhang Yue Jun ¡V 15.0% interest

The Group was the leading wireless coverage solutions provider in the PRC in 2002, with a market share in terms of revenue of approximately 21% (source IDC 2003), and principally provides integrated wireless coverage solutions through its national sales and services network to its customers in the PRC. The Group also sells its wireless overage products to customer in the PRC and Southeast Asia, such as India, Thailand, Indonesia and Singapore.

The Group's wireless coverage solutions business comprises the research and development, production, sales and marketing of wireless coverage products including repeaters, antennas and RF passive accessories, and the provision of project survey and design, project management, installation, maintenance and other after sales services in accordance with customers requirements. The Group's wireless coverage solutions are designed to expand and enhance the coverage of mobile telecommunications networks so as to improve the quality of reception for mobile phone users. These solutions are used in a variety of indoor and outdoor environments (such as hotels, residential estates, office buildings, airports, exhibition centres, underground stations, highways and tunnels.

Since the Group's establishment in 1997, the Group has gradually developed business relationships wth both the China Mobile Group and the China Unicom Group. The Group has offices in 19 provinces in the PRC providing sales, project survey and design , project management, installation and maintenance services. The Directors believe that this extensive sales and services network enhances the Group's proximity to its existing and potential customers in the PRC and enables the Group to provide timely response to customers esquires and technical and maintenance services as and when customers require.

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

• The Group's ability to provide integrated wireless coverage solutions and to develop and produce the wireless coverage products for use in such solutions;
• The Group's ability to provide a wide range of quality products and services in a flexible manner at competitive prices, owing primarily to;
• The Group's business relationships with the China Mobile Group and the China Unicom Group, and it being one of a limited number of designated providers of wireless coverage solutions of the China Mobile Group and the China Unicom Group in the PRC;
• The Group's ability to proactively understand customers requirements and to provide timely quality services through its extensive sales services network in the PRC; and
• The Group's accumulated knowledge and experience in a broad range of wireless coverage technology. In particular in the RF field.

• Reliance on major customers;
• Reliance on PRC market;
• Reliance on key personnel;
• Customer's credit risk;
• Fluctuation of sales;
• Limited insurance coverage;

The Directors believe that the key growth driver for the Group's business is PRC mobile operator' continuos demand for network construction, upgrading and optimization. In view of the growing number of mobile subscribers in the PRC, the PRC government's policy of developing the southwestern and northwestern regions of the PRC and the emergence of 3G in the PRC, the Directors believe that the Group will benefit from further expanding its business with the China Mobile Group and the China Unicom Group through increasing its market share in provinces if currently serves and establishing its presence in other provinces in the PRC

The Directors believe that in order to maintain and expand its market share, it is necessary for the Group to launch new categories of wireless coverage products from time to time to meet changing customer's requirements as well as to keep pace with latest technological developments in the industry. As such, the Group intends to enrich its product mix in respect of different wireless coverage system by developing and producing new wireless coverage products such as new lines of base station antennas and various different types of repeaters tailor-made for CDMA/GSM/3G.

In order to increase the Group's production capacity to facilities its medium to long term growth, the Directors intend to apply approximately HK$120 million of the proceeds raised from the Global Offering for the enlargement of its production facilities. The Directors intend to use approximately half of such sum to acquire land and to construct thereon a further research, development and production platform from 2004 onwards and the remaining for the acquisition of equipment for the Group's enlarged production facilities.

The net proceeds from the Placing, after deducting the related expenses, are estimated to amount to approximately HK$334 million (based on the offer price HK$1.8375 per share). The Group at present intends to apply the net proceeds as follows: