Research and Product Development

We expanded from billing software and system integration in September 1999 to SMS chatting and games in July 2001, and an expanding portfolio of games, picture and ringtone downloads, information services and Internet services since June 2002.

Critical to our competitive edge and responsiveness are our research and development activities that drive the introduction of new and innovative services.

Content Services

We have a large product development team with responsibility for creating content and applications tailor-made for the wireless value-added services market in China. We expect that development of Java™, BREW™, mobile streaming video, and ultimately 3G, will see WAP become the primary interface for users to access a world of new services on their mobile phones.

Software Products

Our software development team focuses on enhancing the available features and functions of our VASPro software.

Our success in this area will depend in part on our ability to work with China Unicom and other mobile operators to develop and introduce new versions of VASPro that continue to address the rapidly expanding needs of mobile operators in China.

Inaddition to maintain our competitive position and prepare for the commercialization of 3G, we are developing a number of advanced software products for the wireless market;

• Advanced WAP Gateways and JAVA Over the Air Download Systems - to connect the service provisioning and management software to the mobile operators network.
  
• Software to support video streaming and related 3G services - which we intend to commercialize when 3G networks roll out in China.
  
• Software that enhances intellectual property protection for wireless content - by processing information obtained from both a mobile operator's network and a user's mobile phone to determine if the content has been paid for by the user or whether it has simply been forwarded by other users.