Major Shareholder:

• Mr. Jack Cho and Ms. Wendy Cho¡V 36.8625% interest
• Mr. Chan Pak Hung and Mr. Chan Pat Leung ¡V 15.0% interest

Company Subsidiary:

• Ultra Trading (HK) (100%): Sale of office furniture in Hong Kong
• Ultra Development (100%): procurement of raw materials, trading of office furniture and provision of management services
• Ultra Asia Holdings (100%): Export of office furniture
• Zhaoqing Ultra Furniture (100%): Manufacture and sale of office furniture

The Group is a provider of total office furnishing solutions. It is principally engaged in the design, manufacture and sale of a wide range of office furniture, including panels, desks, cabinets and chairs. The Group also provides some value-added services such as budget planning, furniture design and layout planning, project management, site project co-ordination, relocation services and after-sales support to customers at no charge or at a minimal fee.

Most of the Group's products are manufactured by the Group under its own brandname. The Group is committed to designing innovative office furnishings with a focus on simplicity and functionality based on ergonomic principles. Apart from its own products, the Group also purchases finished products from Hong Kong and overseas suppliers which represented approximately 9%, 7% and 5% respectively. The Group's total cost of sales for the two years ended 31^st March, 2003 and the three months ended 31 March,2003 and the three months ended 30^th June 2003.

Customers of the Group include multinational corporations. Listed companies, public utilities companies and Government bodies. The Group's office furnishing solutions are primarily sold in Hong Kong and the PRC. The Group's products are also exported to other Asian countries such as the Philippines, Taiwan, India, Singapore and Thailand.

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

• Its dedicated and experienced management team which possesses extensive knowledge in the office furniture industry;
• The substantial value attached to the Group's "Ultra" brand name in Hong Kong and the PRC;
• Its ability to design, develop and manufacture a wide range of high-quality and innovate office furniture;
• Its comprehensive range of value-added services from consultative planning services to installation and after-sales services;
• Its commitment to delivering customized products and services that meet customers' requirements under tight schedules; and
• Its long-established relations with major customers, suppliers, contractors and interior design firms..

• Failure to fully make contributions to the registered capital of Zhaoqing MFY in accordance with the CJV Contract;
• Litigation;
• Absence of land ownership rights in respect of certain properties;
• Failure to register the tenancy agreements for certain PRC properties;
• Solvency;
• Reliance on key management.

The Directors believe that the Group must establish an effective marketing channel through which the brand name of the Group and its product can be disseminated to the market. The key marketing strategy of the Group is to advertise in professional magazines countries where the Group has dealership arrangements, and to participate in international trade shows and industry -specific promotional activities.

Currently, the Group's export markets include India, the Philippines, Taiwan, Singapore and Thailand. To further expand its overseas sales and distribution network, the Group entered into a distribution management agreement with PGL, an Independent Third Party, in July 2003 to line up distributors worldwide including Australia, Singapore, Malaysia, Thailand, Vietnam, Cambodia, Myanmar, Laos, Indonesia, Sri Lanka, Saudi Arabia, Oman, Qatar, United Arab Emirates, Kuwait, Bahrain and the United Kingdom. The distribution agent is responsible for appointing and managing distributors in such countries, on behalf of the Group.

The Group also plans to place greater emphasis on multinational corporations and has set up a corporate service team specifically to handle these customers. The Directors believe that multinational corporations are important target customers of the Group as these customers may, from time to time expand their operations by opening sales representative offices or branches over the globe, thereby providing the Group with more business opportunities. As such, the Group will engage more resources to serve these multinational corporations in order to expand its market coverage.

To maintain its competitive edge, the Group will continue to improve the functions of its existing products and to introduce new products. The Group plans to inject more resources into the development of new products including disking and wall systems. The Group plans to appoint more experienced designers to the CAD design team to improve product functions and designs. Along with the expansion to overseas markets, the Group plans to send its designer regularly to overseas locations in order to keep abreast of overseas trends in the office furniture industry and develop products to meet market demand. To improve the quality of its products, the Group also plans to source higher quality raw materials for its production.

The net proceeds from the Public Offer, after deducting of the expenses payable by the Company estimated to be approximately HK$13.85million and the Directors have confirmed that the net proceeds are sufficient to carry out the implementation plans as stated above. The Directors intends to apply the net proceeds as follows: