Major Shareholder:

• Dr. Yeung Wah Hin, Alex ¡V 37.07% interest
• Town Health (8138) ¡V 20.67% interest

Company Subsidiaries:

• Plasmgene(100%): Engaged in the research and development of the PDs Technology licensed to the Group by ISIS and the Chinese University.
• Celltech (100%): Engaged in the research and development of stem cell technology for treating cancer patients who undergo chemotherapy and replacing damaged organs and tissues in various major diseases.
• 3 Ben (100%): Engaged in the developing cancer related diagnosis based on technologies assigned by Dr. Yeung.

The Group established in January 2001, is engaged in the medical business relating to diagnosis, and particularly relating to diagnosis of cancerous, prenatal and other major diseases. This involves conducting research and development and commercialization of testing services developed from third party technologies relating to the diagnosis of cancerous, parental and other major diseases.

Presently, the Group has successfully launched testing services in the cancer field, where the Directors believe the Group is one of the companies that uses the PDx Technology fo the detection of EB virus associated cancerous disease including nasopharyngenl cancer, a type of cancer of the nasopharynx at the back of the nose, and EB virus associate stomach cancers. The PDx Technology is a platform technology that detects genetic markets including DNA, RNA, EB virus DNA or Viral genomes found circulating in blood plasma or serum and in other bodily fluids for screening, diagnosis and monitoring of disease. The PDx Technology is non-specific as it refers to the detection of any genetic materials found circulating in blood plasma or serum. It is general form of a test.

Based on the Directors' knowledge and experience in the bio-medical field, the Group is one of the companies in the world to bring to the market test developed from the PDx Technology for early detection of cancerous disease. The Group's test identify several genetic markets including DNA, RNA and EB virus DNA which, if present in the blood plasma or serum of a patient, increase the probability that such patient wll be affected by prenatal of cancerous disease as well as organ transplant failures, stroke, trauma and/or pleural effusion, Doctors, patients and laboratories may use treatments or therapy planning.

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

• the Group is on of the entities in the world to provide diagnosis test of cancerous disease developed from the PDx Technology. The Group has already launched testing services, namely EBgene, EBeasy and EBcombo between November 2001 and August 2002;
• a good reputation and market acceptance in respect of the Group's testing services which are proven to be non-invasive, sale, sensitive and less expensive than alternative testing services currently available in the market;
• the Group has in the pipeline a range of testing services that are in various stages of development and which are expected to be launched to the market in the coming two years.
• the ability to generate steadily growing revenue for the Group shortly after the launch of future testing services.
• the anticipated gradual increased recognition of the Group's future testing services by the medical community and patients is expected to reduce significantly the Group's future requirements for sales and marketing support;
• the Group's history of cooperation with a local university and a healthcare organization enables to the Group to enhance its research capabilities and expedite the research and development process of future testing services.
• a strong management team, including Dr. Yeung who has been engaged in the cancer diagnostic and treatment research for over 30 years.

• the Group has a history of incurring loses and future losses are anticipated
• the Group's cash represents a significant portion of its assets
• reliance on businesses conducted with an initial management shareholder
• reliance on a single technology
• testing services substitution and competition
• reliance on Dr Yeung
• reliance on collaborative relationships with the Chinese University of Hong Kong

The Group's overall business objective is to become a prominent medical diagnostics company that utilizes the detection of genetic materials in a non-invasive manner or all the major disease categories. The Directors consider that with the Group is one of the companies in the world offering cancer tests based on the detection of EB virus DNA in blood plasma, the Group is in the progress of a long way into achieving its objectives.

The Group plans to advance and commercialize the diagnostic and screening technology for the early detection of prenatal and cancerous diseases as well as other major illnesses through the expansion of its research capability and establishment of strategic alliances with other life science research organizations or pharmaceutical companies in the world. At the same time, the Group will build on its knowledge in the prenatal and cancer diagnostic field in practical and commercial clinical applications to increase its range of testing services offered to the market. The Group aims to establish its existing and future testing services as a preferred test for foetal and cancerous disease in the Asian region through gradual recognition of its testing services by the medical community and patients.

The Group intends to establish alliance in Hong Kong with major local laboratories for marketing the Group's testing services to their customers, who are mainly doctors and laboratories. The Directors believe that such illness will represent effective marketing tools, which allow the Group's product to reach local doctors who are frequent users of laboratories. When an alliance that is commercially beneficial to both parties is established with certain key laboratories, they will likely market the Group's testing services to their own customer and end-users.

Based on the focused line of business in the PDx Technology, the Group will continue to develop future testing services that suit different needs to its customers, for instance, different priced testing services to suit a wider range of customer population while maintaining the strict criteria of being non-invasive, accurate and sensitive. For example, these EDx Technology test may include the testing of DNA, RNA, genetic and enigmatic markets for other common cancers.

The net proceeds from the Placing, after deducting the related expenses, are estimated to amount to approximately HK$24.0 million (based on the offer price HK$0.5 per share). The Group at present intends to apply the net proceeds as follows: