• Foxconn (Far East)Limited¡V 85.11% Interest

• Dynacept Corporation (100%)¡Gprototyping and development
• Foxconn Pecs Precision Molding Lft (100%)¡GManufacture of handsets
• FIH Co., Limited (100%)¡GProvision of services to Group companies
• Foxconn Beijing Trading Co., Limited (100%)¡GTrading of handsets
• Foxconn Dk ApS (100%)¡GResearch and development
• Foxconn EMEA Inc. (100%)¡GTrading of handsets
• Foxconn Hungary Kft (100%)¡GManufacture of handsets
• Foxconn Mexico Precision Industry Co., S.A de C.V. (100%)¡GManufacture of handsets
• Foxconn Oy (100%)¡GManufacture of handsets
• Foxconn Precision Component (Beijing)Co. Ltd., (100%)¡GManufacture of handsets
• Honxun Electrical Industry (Hangzhou)Co., Ltd., (100%)¡GManufacture of handsets
• S&B Industry Inc.¡GResearch and development
• S&B Industry Technologies L.P. (100%)¡GManufacturing of toolings
• Shenzhen Futaihong Precision Industrial Co., Ltd. (100%): Manufacture of handsets
• Superior Communications (Hangzhou)Company Limited (100%)¡GManufacture of handsets
• Sutech Holdings Inc. (100%)¡GProvision of logistics to Group companies
• Sutech Trading Limited (100%)¡GTrading of handsets
• Triple S Cosmoplast da Amazonia, Ltda. (100%)¡GManufacture of handsets

The Group is a leading vertically integrated manufacturing service provider for the handset industry worldwide. The Group provides a full range of manufacturing services to its customers in connection with the production of handsets. The key customers include leading international brand name handset original equipment manufacturers, or OEMs. The Group has production, research and development and other facilities in the PRC, Europe and the Americas.

Its manufacturing services include design and manufacturing of precision tooling and molds; product development; manufacturing of components, modules and systems; assembly and integration; and after-sales services. The group is not engaged in branding of its own products.

The Group is a subsidiary of Hon Hai (Hon Hai Precision Industry Company Limited), one of the largest global manufacturing services providers in the computer, communications and consumer electronics industries. Hon Hai is listed on the Taiwan Stock Exchange.

The Group believes that its competitive strength have enabled them to successfully meet these needs for the existing customers and to be a leading handset manufacturing services provider. The Group also believes that the strengths enable them to be well-positioned to take advantage of future growth in outsourcing by its customers and to expand its customer base.

The Group believes that it has the following principal competitive strengths:

• in-house high precision mechanical engineering expertise and development strengths;
• highly vertically integrated production process;
• extensive global manufacturing and services platform;
• strategic collaboration with industry leaders; and
• customer-focused corporate culture, strong management and high quality execution.

• The Group is highly dependent on its key custoemrs for revenues.
• The Group is highly dependent on a single industry, the handset industry, which is characterized by rapid technology change and increasingly short product life-cycles.
• The Group may experience a further decline in profit margins as a result of changes in the product focus and the mix of new and mature products.
• The Group may not be able to successfully help its customers develop new products.
• The Group short operating history and rapid growth may make it difficult for investors to evaluate its business and prospects.
• The Group may not be able to effectively manage its rapid domestic and international expansion.
• The Group depends on attracting and retaining key personnel, including skilled research and development engineers.
• The Group¡¦s operating results may fluctuate from period to period.
• The Group had significant negative cash flows from operating activities for the nine months ended September 30, 2004.
• The interests of Hon Hai, who will continue to be the Group¡¦s ultimate controlling shareholders, may differ from those of other shareholders.
• The Group may face competition from Hon Hai in the future.
• The Group depends on Hon Hai, the Group¡¦s ultimate controlling shareholder, to provide certain services and facilities for which the Group currently may have limited alternative sources of supply.
• The Group depends on the Group¡¦s ultimate controlling shareholder, Hon Hai, for the use of the ¡§Foxconn¡¨ trademark.
• The Group may not be successful as an independent stand-alone company with public shareholders.
• The Group may encounter difficulties with acquisitions the Group may make in the future.
• The Group may be unable to secure additional funding in the future.
• The Group¡¦s production capacity may not correspond precisely to the Group production demands.
• The Group dependence on a limited number of qualifies suppliers of raw materials and components could lead to delays, lost revenue or increased costs.
• The Group is subject to the potential risk of increased income taxes in the different countries where the Group operated.
• Possible failure to comply with environmental regulations could harm its business.

The principal strategic objective is to be the leading manufacturing services provider in the handset industry. To achieve this strategic objective, the Group must continue to meet the five critical needs of our customers: speed, quality, engineering service, flexibility and cost. We have the following principal strategies to successfully implement its CMMS (Components, Modules, Move, Services) model and to achieve its strategic objective:

• continue its customer focus on industry leaders;
• further develop and enhance our high vertical integration and high precision mechanical engineering expertise;
• strengthen its extensive global manufacturing and services platform; and
• recruit, train and retain skilled and experienced people globally.

The Group estimates that the aggregate net proceeds to the Group¡¦s from the Global Offering (after deducting underwriting fees and estimated expenses payable by us in connection with the Global Offering), assuming the Over-allotment Option is not exercised and assuming and Offer Price of HK$3.47 per Share, being the mid-point of the proposed Offer Price range of HKK$3.06 to HK$3.88 per Share, will be approximately HK$2,938.7 million (HK$3,379.8 million, if the Over-allotment Option is exercised in full).