Major Shareholder:

• CIDC Funds ¡V 21.4% interest
• Customers ¡V 7.0% interest
• Shui On Construction ¡V 5.1% interest

Company Subsidiaries:

• Solomon Systech Ltd (Hong Kong) (100%)
• Systech Technology China Ltd (Hong Kong) (100%)
• Solomon Systech Ins (U.S.A) (100%)
• Solomon Technology China Ltd (Hong Kong) (100%)
• Solomon Systech (Shenzhen) Ltd (100%)

The Group is an independent fables semiconductor company specializing in the design, development and sale of proprietary IC solutions that enables sophisticated display application such as cellular phones and handheld displays. In terms of volume, the Group is currently one of the leading independent display IC producers for cellular phones. The Group shipped more than 70 million displays ICs in 2003, of which more than 95% were display ICs developed for use in cellular phones. According to IDC's estimate in November 2003, the projected 2003 global shipments of cellular phones were estimated to be approximately 470 million handsets.

The production are used by leading cellular phone brand owners such as Motorola and Sony Ericsson and display module market such as ALPS Electric Co., Ltd and RiTDispaly Corporation. The display IC products are also critical components of consumer electronic products such as MPS players and handheld. Although the Group provides products for different display technologies, the Group focuses on higher value added sectors such as colour screen and multifunctional single chip solutions. The Group currently have in production driver/controller ICs for cellular phone and other mobile device application using STN, colour STN and OLED technologies, and brand owners and display module markets are currently evaluating the line of TFT display ICs for cellular phones.

The Group own strategic collaborations with brand owners to co-develop products in order to deliver advanced display IC solutions, and as an independent display IC producer that is able to leverage this experience to create advanced products for other brand owners, the manufacturing process is outsource to specialist semiconductor contract manufacturers, namely wafer foundries and packaging can testing factories, with the own engineers developing manufacturing procedures and testing software and hardware to ensure product quality and to control the use of the intellectual properties.

The headquarters are in Hong Kong and the Group owned a regional offices in the PRC, Singapore, Taiwan and the United States, with authorized representative and distributors in Europe, Japan, Korea, the PRC, Southeast Asia and Taiwan.

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

• The Group is strong in research and development with proven technological know-how and a portfolio of core IP in display IC technologies.
• With a comprehensive portfolio of products.
• Work closely with global industry leaders in co-developing new generation products.
• Own expertise in managing the supply chain.
• Own developed a strong global sales and distribution channel.
• With a team of experienced senior management and professionals.

• With a limited operating history upon which to evaluate the Group and product portfolio.
• Do not have long term contracts with the contract manufacturers.
• The contract manufacturers may not keep with capacity requirements.
• The Group depends on one wafer fab supplier for a significant portion of wafers.
• The Group depends on a few brand owners for a significant portion of the revenues.
• Do not have long term purchase commitments from the customers, which may result in fluctuations in the result of operations and may affect the liquidity.
• The Group may not manage the supply-demand cycle effectively.
• The Group may face significant risks in expanding the product offerings to cover new markets and technologies.

Through leveraging the competitive advantages and implementing the following strategies, the Group aims to maintain and strengthen the position as a leading display IC producer in the world. Specifically, the Group intends to continue with the implementation of the following initiatives to enhance the growth;

• Strengthening relationships with brand owners and display module makers and leveraging on these relationships to expand the customer base.
• Expanding the product portfolio to provide a broad range of display Ic solutions
• Maintaining our focus on the supply chain.
• Investing in capacity.
• Attracting, retaining and developing quality employees.

The net proceeds from the Placing, after deducting the related expenses, are estimated to amount to approximately HK$589 million (based on the offer price HK$1.825 per share). The Group at present intends to apply the net proceeds as follows: