Major Shareholder:

• Start Technology (0706) ¡V 32.18% interest
• HK Sunway ¡V 10.08% interest
• Simplex ¡V 11.26% interest

Company Subsidiary:

• SJTU Sunway (Beijing) (100%): Research, development and distribution of software products and provision of translation services

The Group is principally engaged in the research, development and sale of four major lines of software products comprising translation software, information security software, Internet application software and entertainment software targeting at enterprises and individual consumers in the PRC. Since its establishment in August 1998, the Group has successfully developed and launched various software titles with different versions and upgrades.

Currently, the Group's translation software ¡§Oriental Express¡¨ is being widely used by the market and highly acclaimed by various newspapers and magazines in the PRC. Leveraging on its expertise and provision of translation and information localization services through a platform named ¡§Lingoworld¡¨ over the Internet. The Directors believe that the operation of ¡§Lingoworld¡¨ not only broadens the Group's revenue base but also serves as an effective marketing channel to promote the Group's translation software.

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

• Key developer in translation software in the PRC;
• Established reputation and recognition of the Group's brand name in different types of application software;
• Extensive sales and distribution network in the PRC;
• Experienced and stable management team;
• Continuous technical training for staff in advanced software research and development;
• Experienced research and development teams;
• Experienced marketing team with an in-depth understanding of customers need; and
• Co-operation with Shanghai Jiao Tong University..

• Reliance on major customers;
• Risks involved in accumulation of accounts receivable;
• Seasonal fluctuation of the Group's sales;
• Sustainability of profit;
• Market acceptance of the Group's newly launched products;
• Reliance on key personnel;
• Uncertainty in dividend distribution policy;
• Reliance on certain technologies

In view of the growth of IT industry in the PRC in recent years, and given the Group's established position in the general application software market, in particular, the translation software market, in the PRC, the Directors believe that the Group is well positioned to tap the significant demands for general application software in the future.

The Group's mission is to become one of the well recognized application software developers and translation services providers in the Greater China Region, in particular, in the areas of translation and information localization. Capitalizing on its well-established market position in the PRC, the Group plans to deepen and expand its research in CAT technology and development of technologically advanced translation software, and, will the cooperation of Shanghai Jiao Tong University, more advanced information security software. The Group also plans to broaden its customer base by enhancing tis existing nationwide distribution network in the PRC as well as the overseas markets.

It is part of the business development of the Group to establish and maintain strategic alliances and co-operations with renowned IT companies, industrial and associations and academic institutions in the PRC as well as overseas. Through these strategic alliances the Group will be able to obtain the latest information regarding the technology development. This will strengthen the Group's position in the software industry and information localization and will be able to market the Group's brandname and product and services in the global market.

The Group will strengthen its relationship with existing strategic allies to pursue larger scale projects and will identify new strategic allies or partners for product development and market expansion. In addition, the Group also plans to explore opportunities for strategic acquisitions of, or investments in, businesses that can provide synergies to its business.

The net proceeds from the Placing, after deducting the related expenses, are estimated to amount to approximately HK$20 million (based on the offer price HK$0.43 per share). The Group at present intends to apply the net proceeds as follows: