JAFCO Asia

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JAFCO Asia (PRC / HK)
Beijing Hong Kong
Taipei Seoul
Singapore Palo Alto Boston
Tokyo
Kansai Chubu
Hokkaido Kyushu
2004
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JAFCO Leading International VC Company

• Parent, JAFCO Co Ltd, is listed on the Tokyo
  Stock Exchange
• The most dominant VC in Japan
• Approximately 38 owned by Nomura Group
• 30 years in operation with 5 offices in Japan
• Invested in over 2,600 companies globally. ?
  2,000 based in Japan and around 30 have achieved
  IPO
• JAFCO America Ventures and JAFCO Asia Pacific are
  investment operations outside of Japan

• JAFCO Asia, 14 years in operation with wide
  coverage in Asia
• Has managed private equity funds in aggregate of
  more than US850 million
• Invested in more than 278 companies and over 169
  exits, of which 79 have been publicly listed
• 5 offices and 16 investment professionals
• Has shifted to 100 technology focus since 2000
• Balanced investment approach from early start-up
  to expansion finance
• Ranked 4th in terms of investment amount in the
  PRC for Year 2002 Digital Fortune Magazine
  (published by IDG)
• Ranked 6th in the PRC for Year 2003 Zero2ipo

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JAFCO Backed IPO (Worldwide)

• As of June 30th, 2004 total of 712 IPOs

Europe 18
USA 46
Japan 569
Asia 79
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JAFCO Asia Technology Fund I (JATFI)

• Capital Commitment
• US178 million deployed in 49 companies across
  Asian Pacific
• Final Closing in January 2001
• Fully invested other than follow-on

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JAFCO Asia Technology Fund II (JATF II)

• Capital Commitment
• US100 million
• Final Closing in June 2004
• Term
• 10 years from the Initial Closing Date
• Focus/Strategy
• Target at North Asia (excludes Japan) and South
  Asia (includes Australia)
• 100 focused on technology investments
• Early to mid stage opportunities
• Five technology sectors Telecommunications,
  Software, Peripherals, Semiconductors, E-commerce

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JAFCO Asia Strategy
Selected Strategic Partnerships, Co-Investors and
Alliances


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JAFCO Selected Success Stories
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JAFCO Selected Success Stories

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JAFCO Asia - Investment Interests (PRC/HK)


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JAFCO Asia Selected 2002 Investments (PRC/HK)

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JAFCO Asia Selected 2003-2004 Investments
(PRC/HK)

Viewtran
Other notables
Pixelplus
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JAFCO Asia Selected 2003-2004 Investments
(PRC/HK)

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JAFCO Advisors (PRC/HK)
Danny T.P. LUI Chairman Chief Executive
Officer, Authosis, Inc. Mr. Lui is the Chairman
and CEO of Authosis, a VC firm, headquartered in
HK with offices in Shenzhen, Shanghai and Silicon
Valley, with a focus on fabless IC design
companies. Prior to founding Authosis, Mr. Lui
was the Chairman of American Pacific Technology
Group (APTG), an organization he established to
make venture capital investments in startups and
pre-IPO companies in Silicon Valley. Prior to
APTG, Mr Lui co-founded the Legend Group in Hong
Kong, a well-known PC brand and manufacturer in
the PRC which was successfully listed on HKSE in
1994. At Legend, Mr. Lui held various management
and operating positions within the Legend Group
and was also the Head of the QDI group, a Legend
Group subsidiary. Mr. Lui holds a Bachelors
degree in Computing Science from the Imperial
College of London and is currently a board member
of HongKong-SV.com as well as a director on a few
portfolio companies. Steven TANG President,
Viasystems Asia Pacific Co. Limited Mr. Tang is
the President of Viasystems Asia Pacific and
oversees the operations in Asia Pacific which
comprise of 12 operating units. Viasystems is
one of the leading electronics manufacturing
service providers. It engages in the provision
of design, production and assembly of electronic
devices to testing and after sale support. Prior
to Viasystems, Mr. Tang was the General Manager
of Amphenol Asia, a leading component supplier
for the military and aerospace, IT, telecom and
automotive industries. Prior to Amphenol, Mr.
Tang held various operating and engineering
positions with Pace, National Semiconductor, and
Honeywell. Mr. Tang holds a Bachelors degree
with Honors in Electrical Engineering from
Nottingham University and an MBA from Bradford
University, specialized in Corporate Policy and
Economic Forecast. Louis WOO Managing Director,
CyberCity Investments Limited Dr. Woo is the
Managing Director of CyberCity Investments
Limited, responsible for all the IT portfolio
companies in China. Before CyberCity, Mr. Woo was
the President and General Manager of Lernout
Hauspie Asia Pacific. Mr. Woo was also the
Founder and Managing Director of AsiaWorks, a
company focused on developing and marketing Asian
language speech and handwriting recognition
technologies. Dr. Woo started his career at Apple
Computer and held various management and
operating positions over a 12 years period,
including starting up Apple Taiwan in 1990. Dr.
Woo holds Bachelor of Science, Master of Science
and PhD degrees from Stanford University. He used
to teach at the State University of New York at
Albany, University of Chicago and Stanford
University and was also consultant to USAID,
UNESCO, the World Bank and various government
agencies in the USA.


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JAFCO Team (PRC/HK)
Vincent CHAN Chun-Hung CFA Director and
Executive Vice President (Regional Investment
Director, Head of North Asia) Mr. Chan is the
Head of North Asia for JAFCO Asia (China, Hong
Kong, Taiwan and Korea) and one of the three
members of JAFCOs Asian Investment Committee.
Vincents background combines private equity and
venture capital investment with investment
banking skills. Prior to joining JAFCO Asia in
2000, he worked four years as the Director
responsible for North Asian markets in Suez Asia,
one of the most established private equity firms
with Asian operations since 1987. Previously, he
spent 2 years in a start-up Asian private equity
firm, PrimePartners, as one of the Founding
Directors responsible for building up the Greater
China office and investing the first US63
million fund raised. PrimePartners was formed by
senior members of Morgan Grenfells Asian team
including the former Chairman of the Stock
Exchange of Singapore, the ex-Asian Pacific
Chairman and several regional Managing Directors
of Morgan Grenfell Asia. Vincent also spent 3
years as a Senior Manager in HSBC Private Equity
Management (Asia) and was one of the founding
members of the Greater China team.   Successful
venture investments in Asia include, but not
limited to, China Motion, Ports International,
3721 (PRC), BenQ (Taiwan) and Pixelplus (Korea).
  Before commencing his career in private equity
in 1991, Vincent spent several years in Standard
Chartered Asia in Hong Kong. He was the first
Graduate Trainee employed by the Asian investment
banking arm of the Standard Chartered Bank,
specializing in corporate finance. Standard
Chartered Asia was rated as the Merchant Banker
of the Year by Asia Money Magazine in late
1980s.   Vincent was born in Hong Kong. He
graduated with honors from the University of Hong
Kong with a Bachelor of Arts. After graduation,
he went straight for a MBA with the Manchester
Business School in England. He received the
Chartered Financial Analyst designation in 1993.
He is the current Vice Chairman and the Head of
PRC Committee of the Hong Kong Venture Capital
and Private Equity Association. Mr. Chan is a
member of the Assessment Panel for the Small
Entrepreneur Research Assistance Programme under
the Innovation and Technology Fund, HKSAR, Board
Member of the Hua Yuan Science and Technology
Association (Beijing) and Board Member of Monte
Jade Science and Technology Association of Hong
Kong. He was rated as One of the Top Ten Most
Active PRC Venture Capitalists in Year 2002 by
(i) Digital Fortune Magazine (published by
International Data Group) and (ii) China Venture
Capital Journal and Zero to IPO Limited
respectively. He was ranked as One of the Top
Ten Outstanding Offshore PRC Venture Capitalists
in Year 2003 by Zero to IPO.


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JAFCO Team (PRC/HK)
Michael CHOW Ching Ning CFA Vice President
General Manager (PRC / HK Investments)   Mr. Chow
is currently Vice President General Manager.
He is responsible for the overall coordination of
investment activities in China and Hong Kong.
  Prior to joining JAFCO, Mr. Chow was an
Associate Vice President with Capital Z Asia
Limited. Capital Z Asia is a private equity fund
manager with its headquarter in New York and
manages in total US125 million in Asia out of a
global fund of US3.5 billion in New York. He
focused on investments in Thailand, Malaysia,
Singapore and Indonesia then.   Prior to joining
Capital Z Asia, Mr. Chow was an Investment
Manager at the direct investment arm of the
Peregrine Group (PDI). Based in Hong Kong, he
was responsible for the management of a Greater
China fund called ICC (The Investment Company of
China) that Peregrine had invested in, alongside
other leading global institutional investors.
Besides working on ICC, he also sourced and
monitored investments made by the Peregrine Group
itself.   Prior to joining Peregrine, Mr. Chow
worked as a Finance Manager at the manufacturing
and retailing arm of the Hutchison Whampoa Group
in Hong Kong and Shanghai.   Mr. Chow was born
in Hong Kong. He obtained a Bachelor (Hons)
degree in Business Studies from the Hong Kong
Polytechnic University in 1990 after returning
from Singapore where he had lived for 8 years.
He is a Charterholder of the AIMR Chartered
Financial Analysts designation and a Fellow
member of the Association of Chartered Certified
Accountants of the UK as well as a Fellow member
of the Hong Kong Society of Accountants.


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JAFCO Team (PRC/HK)
DR Forrest ZHONG Xiaolin Vice President (PRC / HK
Investments) Mr. Zhong is currently a Vice
President, primarily responsible for investment
in IT and Communication technology companies in
China/Hong Kong. Forrest holds directorships in
portfolio companies including China Wireless,
Odysys, Viewtran, Powercom and Fiberxon.   Prior
to joining JAFCO, Forrest was an Investment
Manager of Transpac Capital Ltd. in Hong Kong. He
was a core team member of Transpacs ITCI (IT,
Communication and Internet technologies)
investment group. As deal champions, he led
investments in the areas of embedded software
network management and value-added services data
storage and digital video processing and
transmission. Forrest was also responsible for
setting-up Transpacs operations in Beijing,
China.   Forrest started his career in early 1989
as a System Engineer in a joint-venture of
Northern Telecom (now Nortel Networks) in China,
where he was involved in RD, technical service
and system support for Nortels Meridian digital
switching system deployed in China.   After
completing his PhD degree and a stint with
Motorola in Singapore in 1996, Forrest joined
China Aerospace International Holdings Ltd
(CASIL, HKSE 0031) in Hong Kong as an Assistant
General Manger. He was responsible for corporate
strategic investment mainly in the areas of
satellite communication, digital video
broadcasting, and digital switching systems and
terminals. To turnaround CASILs publicly listed
telecom arm---CASTEL (HKSE 1185), Forrest was
transferred internally to become the Deputy
General Manager of CASTEL in 1999, where he was
in charge of the overall operations of the
subsidiary and helped the company to acquire
fixed wireless broadband communication technology
through the cooperation with Adaptive Broadband
in the US.   Forrest was born in China. He
obtained Bachelor and Masters degrees in
Engineering from the Huazhong University of
Science Technology in Wuhan, China, a Ph.D. in
engineering from the Napier University in
Edinburgh, UK and a MBA from Ivey School of
Business, the University of Western Ontario,
Canada.


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JAFCO Team (PRC/HK)
Jenny LEE Hongwei Vice President (PRC / HK
Investments)   Ms. Lee is currently a Vice
President. Prior to joining JAFCO, Jenny was an
investment banker with Morgan Stanley, based in
Hong Kong, focused on North Asian clients. She
has experiences in both mergers and acquisition
advisory and equity capital markets. In addition
to pricing and restructuring deals for clients in
the oil and gas and telecommunication industries,
Jenny was also responsible for structuring equity
and equity-linked financing alternatives for
public and private Asian clients in the
technology and telecommunication
industries.   Prior to Morgan Stanley, Jenny
spent several years with Singapore Technologies,
the largest technology company in Singapore. She
held various engineering and operating positions
in Singapore Technologies, ranging from system
design of broadband datalink systems, project
management of large-scale avionics upgrade
programs for fighter jets to managing the design
and implementation of employee evaluation systems
for engineers and managers. Her work also
required evaluation of cutting edge defense
technologies.   Jennys early venture capital
experiences were gained in the U.S. from working
with Vertex Management, a global early stage VC
fund based in Redwood City, CA and an internship
opportunity with OCA Ventures, an early stage
technology fund in Chicago, IL. She evaluated
investment opportunities in technologies such as
storage networking, enterprise software, digital
rights management, and last-mile broadband
technologies.   Jenny also spent some time
working in a startup in the U.S. in the fixed
broadband wireless space (LMDS) and was actively
involved in helping the startup formulate
marketing, sales and manufacturing strategies as
well as secure series B financing. She also
evaluated the companys competitive positioning
in light of other broadband alternatives such as
cable, DSL, satellite and fixed broadband
wireless.   Jenny was born in Singapore but
spent more than 10 years living abroad in the US
and in HK. She holds an MBA with majors in
Finance, Strategy and Marketing, from the Kellogg
School of Management, Northwestern University and
graduated with a Masters in Engineering from
Cornell University and a B.Sc. in Electrical
Engineering also from Cornell University. Jenny
is also an IEEE member.  


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JAFCO Team (PRC/HK)
LE Wen Yong Resident Representative Beijing   Mr.
Le is currently an Assistant Vice President. He
was seconded from JAFCO Tokyo, our headquarter,
to JAFCO Hong Kong in 2001 and is currently
responsible for the investment activities in PRC,
with special focus on privately-held technology
companies established by the PRC
nationals.   From 1998 to 2001, Mr. Le worked for
the Investment Planning Department in JAFCO
Tokyo, focusing on the PRC market. Mr. Le also
supported the Sino-Japan Joint Venture Project
on behalf of JAFCOs portfolio companies.   Prior
to joining JAFCO, Mr. Le spent one year in the
Account Department of Shanghai VW Motor
Corporation in China, responsible for improving
the companys accounting systems.   Mr. Le was
born in Shanghai. He graduated from the Shanghai
Jiao Tung College with a Bachelor of Industrial
Management in 1989 and the Tokyo International
University with a Master of Arts in Business and
Commerce.  


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Recent China Announcement HiSoft
China Based Software Services Outsourced Provider
HiSoft Technology International Ltd Entered into
First Round of International Financing   July 28
2004 HiSoft Technology International Ltd today
announced that it has entered into Series A
financing agreements with JAFCO Asia as lead
investor and Intel Capital Corporation and
Granite Global Ventures as co-investors.
Proceeds from this offering will be used to
finance HiSofts growth opportunities and to help
accelerate the expansion of its business
globally.   Mr. Li Yuanming, General Manager of
HiSoft said, We are very excited to have
obtained support from world class investors like
JAFCO Asia, Intel Capital Corporation and Granite
Global Ventures. According to the 2004 China
Software Industry Development Report, the Chinas
software industry is growing at a rate of more
than 35 percent in the last three consecutive
years. This growth is expected to accelerate as
more and more international corporations
outsource their operations or software
development and IT support offshore. China, with
its large pool of ready and well-trained
engineers, government support and stable
infrastructure is becoming a preferred country
for outsourced work. Upon the completion of this
financing round, HiSoft will be in a very good
position to capture this growth and market
share.   Mr. Vincent Chan, Director and
Executive Vice President of JAFCO Asia said,
HiSofts strong growth potential, its
professional software development and scalable
management process, coupled with a strong
technical and execution focused management team
are key drivers for our investment decision.
Together with our co-investors, we will support
HiSoft to become one of the leading China players
in this space in the years to come.   Commenting
on the investment, Cadol Cheung, Director of
Intel Capital, Asia Pacific said, Intel Capital
is very excited by the growth of todays local
technology enterprises. Our interest in HiSoft is
an example of Intel Capitals commitment and
support of local companies that offer products
and services to accelerate this growth even
faster.   Thomas Ng, Managing Partner from
Granite Global Ventures, said "HiSoft is one of
the few China-based companies with the software
development discipline and attributes to address
the needs of the US and European customers. We
look forward to helping guide the company through
its growth phase over the coming years and
working with its management team and stakeholders
to help achieve its vision of becoming a global
leader in the outsourcing industry.


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Recent China Announcement Fiberxon
Fiberxon completes 10 million funding     March
19, 2004 - SANTA CLARA, Calif. Fiberxon Inc., a
provider of optical access module for fiber
optical communication networks, today announced
the closing of its 10 million second round
funding. With JAFCO Investments as the lead, Apax
Partners and a few strategy investors from
related industry participated in this
financing.   "JAFCO Investment only seeks out the
most compelling fiber optical communication
investments that help enable broadband optical
networks effectively and economically," Vincent
Chan, Director and Executive Vice President of
JAFCO Asia commented. "Outstanding financial
results and rapid revenue growth proves that
Fiberxon is on the right track with continuing
new customer wins and technology innovations. We
are excited to be part of this rapidly growing
company."   Ever since its founding by the end of
2000, Fiberxon rocketed to a big success in
penetrate the global optical module market even
in the downturn period after the optical
communication bubble in 2001. In just 3 years,
Fiberxon invented its innovative manufacturing
technology and developed its product portfolios
with more than 150 products for Gigabit Ethernet,
Fiber Channel, FTTX, SDH/SONET, MSTP and CATV
applications. This company has been profitable
for 6 consecutive quarters since Q4 2002.
Recently, Fiberxon achieved a series new design
wins and became a qualified supplier to several
leading telecom/datacom system providers in North
America and Asia Pacific region.   I am very
pleased by the positive response by so many
influential and strong venture capital firms and
strategic investors to our technology, products,
rapid revenue growth and profitability. The
over-subscription of our Series B Funding is a
clear indication that our technology innovations
and product offerings are economically feasible
for system providers needs for strengthening the
competitiveness of their products and solutions.
said Li Hsu, CEO and President of Fiberxon, The
new capital from this round of financing will
definitely accelerate our new product development
and revenue growth. We believe that, as one of
the leader in the design and manufacturing of
optical access modules, we are going to steadily
take more share in the global marketplace.  


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Recent China Announcement - 3721
JAFCO Asias Exit of 3721 Network Software
Reinforces Foothold in China VC Exits USD4
million Investment with Yahoos USD120 million
Purchase   Singapore, 4 February 2004 Asias
leading technology venture capital group, JAFCO
Investment (Asia Pacific) Ltd (JAFCO Asia), is
pleased to announce its recent exit of 3721
Network Software Company Limited (3721 or the
Company), making it JAFCO Asias first investment
to exit in China from its technology fund JAFCO
Asia Technology Fund (JATF) - that was closed in
January 2001.   JATFs exit was provided by an
acquisition by Yahoo! Holdings (Hong Kong), a
subsidiary of Yahoo! Inc., in January 2004. The
acquisition was worth up to USD120
million.   JATF was the lead investor in 3721s
second round of financing, with an investment of
USD4 million from its USD178 million technology
fund. It was also the largest institutional
investor and the second largest shareholder in
the Company, after 3721s founders.   3721 is the
pioneer and market leader of Chinese Keyword
(CKW) search and navigation services in China.
The companys service satisfies the needs of
Chinese-speaking Internet users and allows them
to use real names and familiar identities in
their native language, rather than Roman alphabet
domain names (URLs), to navigate to a web site,
or search for information. Through this
technology, 3721 has made the Internet more
accessible to one of the worlds largest
non-English speaking populations, and thus
established its revolutionary status in making
the Internet truly global. JAFCO Asia
invested in 3721 in early 2002, at a time when
there was very little investor interest in
Internet companies, said Mr. Michael Chow, Vice
President and General Manager of PRC/Hong Kong
Investments, JAFCO Asia. Among the factors that
impress us are the Companys unique business
model, the strong innovative capability of its
RD team and its Founders vision.   


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Recent China Announcement - 3721 (cont)
 
JAFCO Asia played a major role in steering 3721
in the direction of a mergers-and-acquisition
route as a preferred exit strategy to an IPO. As
the lead investor, JAFCO Asia played a
significant role in the past two years in forging
3721s key directions, and provided value-add to
the Company in terms of its operation and
expansion strategy.   JAFCO Asia has been
instrumental in helping the Company define its
B2C strategy and in bringing Japan based mobile
services, ideas and product collaboration
opportunities, said Mr Hongyi Zhou, CEO,
3721. JAFCO Asia is one of the most active
venture capital companies that focus on
technology investments in China. It is the only
venture capital firm with a strong Japan
connection, bringing value-add to its portfolio
companies through its network of Limited Partners
(LP) and investees in Japan.    Despite the
bursting of the Internet bubble, 3721
demonstrates that there still are technology
companies with promise, said Vincent Chan,
Executive Vice President and Director, JAFCO Asia
And our exit of 3721 demonstrates JAFCO Asias
expertise in spotting emerging talent and
capturing growing technology opportunities in
China even during tough investment environment.
With this successful sale, JAFCO Asia is spurred
to continue its hunt for other attractive
investment opportunities in China, he
added.   Besides 3721, JATF has made 10 other
technology investments in China. Its China team,
headed by Mr. Michael Chow, comprises an
experienced team of five professionals, with a
combined VC experience of more than 20 years.
Each professional has held prior positions in
leading technology-related venture capital firms
in Hong Kong and the US.  


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Recent China Announcement China Wireless
CHINA WIRELESS TECHNOLOGIES RECEIVES VC FUNDING
TO EXPAND BUSINESS IN WIRELESS DATA
COMMUNICATIONS MARKET IN CHINA   JAFCO Asia
invests in Chinas rapid growing wireless sector
  Shenzhen, China, September 29, 2003 China
Wireless Technologies Limited (CWT), a total
solution provider in the wireless
telecommunications space including wireless
infrastructure system solutions, back-end
information platform solutions and front-end
wireless terminals, today announced that the
privately held company has received venture
funding from Asias leading venture capital firm
JAFCO Investment (Asia Pacific), through its
JAFCO Asia Technology Fund.   The investment
will enable CWT to expand its business of the
CoolPad series wireless smart terminals for 2.5G
networks by developing the wireless solutions and
distribution networks, and to scale-up its RD
and product development efforts.   Founded in
Shenzhen in 1993 by an ex-professor at Shenzhen
University, Yulong Telecom(Yulong), a
fully-owned subsidiary of CWT, develops wireless
data transmission equipments, wireless
telecommunication systems, information platform
for wireless communication operators, and
wireless data terminals. Yulong sold these
hardware and software products to telecom
operators to provide mobile voice and value-added
wireless data services. It delivers a total
solution including back-end operation support
system and front-end terminals for mobile
operators to generate additional revenues from
its mobile network infrastructure.   We invest
in Yulong because of Yulongs core competency in
wireless communication system and telecom
software design, wireless terminal product
development, as well as its well- established
customer base and track record with major telecom
operators, said Vincent Chan, Director and
Executive Vice President of JAFCO Asia. Yulong
strives to become a leading wireless data
communication and information solution provider
in China. The deregulation and further opening-up
of Chinas telecom sector would bring more
business opportunities to technology solution
providers like Yulong, who has in-depth knowledge
about operators requirements from both the
back-end operating support and information
platforms, and the front-end wireless terminals.
 


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Recent China Announcement China Wireless (cont)
  We are pleased and excited by the support we
have received from a top-tier investor, said Guo
Deying, Founder and CEO of China Wireless
Technologies Limited. We envision the market
opportunity of developing wireless data terminals
that would exploit the benefits of much higher
data transmission rates offered by 2.5G and 3G
networks, as well as the much powerful and
content-rich back-end information platforms
deployed by us. We believe that JAFCO could add
tremendous value to our business because of their
strong connections in the industry as well as in
Japan.   CWT has nearly 10 years of experience
to provide wireless data communication solutions
including both hardware and software, and after
sales services to wireless data communication
operators in China. The company has strong
emphasis on quality control to make sure that all
of the products satisfy their pre-set quality
standards before delivering to customers. CWT
also has sales and marketing network across China
and 24-hour customer service. Yulong was
accredited as the Shenzhen Hi-tech Enterprise
by the Shenzhen Science and Technology
Council.


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Recent China Announcement Viewtran
VIEWTRAN RECEIVES SERIES B FUNDING TO CAPTURE
EMERGING RICH MEDIA COMMUNICATION MARKET
OPPORTUNITIES IN CHINA   JAFCO Asia invests in
Chinas high growth broadband sector  Shenzhen,
China, September 5, 2003 Viewtran Technology
Limited (Viewtran), a pioneer in rich media
communication and collaboration platforms and
solutions, today announced that the privately
held company has received its second round of
financing from Asias leading venture capital
firm JAFCO Investment (Asia Pacific), through its
JAFCO Asia Technology Fund.   The investment
will enable Viewtran to continue the companys
rapid expansion by increasing its domestic and
international marketing, to further fuel its RD
and product development efforts in China and to
pursue merger acquisition opportunities.   Found
ed originally in 2000 in Silicon Valley, USA by a
group of successful hi-tech veterans from both
China and the USA, Viewtran develops IP-based
real-time rich-media communication software and
applications, such as desktop-based
videoconference and collaboration for
enterprises, the interactive virtual classroom
for e-learning and distance training, video
chat-rooms for portals and video phones for
individual communications. All applications are
supported by the H.323 multi-point communication
server in the backend, which Viewtran developed
in house and owns the full IP (Intellectual
Property). Such application suites are licensed
to broadband services providers (such as China
Telecom, China Netcom, and China Unicom) which
provides the related services to business and
individual broadband subscribers. A services
platform integrating necessary business and
operation support functions (billing,
authentication, fault management) has been
developed to enable such service be offered
immediately by service operators. The products
are also sold and licensed directly to large
enterprises, government agencies and education
institutes who often own private network
bandwidth, addressing the fast growing broadband
market need.  


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Recent China Announcement Viewtran (cont)
We believe that multipoint communication is
moving from boardroom conferencing, to
set-top-box video conferencing, and to
soft-client conferencing and to web-based rich
media communications, a concept which
encapsulates the state of the conferencing
industry of the future, said Vincent Chan,
Director and Executive Vice President of JAFCO
Asia. Viewtran is riding on the wave of this
dramatic technology and market change and is
right on the track in terms of future technology
and market development trends. We are excited
about Viewtrans rich media communication
products, which will enable the widespread
adoption of broadband solutions such as IP-based
videoconferencing and E-learning and provide the
carriers revenue growth opportunities. As the
first mover in the industry in China, Viewtran is
at a point to capture the emerging broadband
market and to establish its leading position in
China. We also believe that JAFCO could add
tremendous value to the companys growth due to
our strong connections in the industry and in
Japan.   We are pleased to raise this round of
investment and it will greatly enhance our
capabilities to capture the expanding
opportunities in the high growth rich media
communication market in China, said Jeffrey
Kang, CEO of Viewtran Technology Limited.
Top-tier investor such as JAFCO Asia benefits
our business because of its global network,
strategic insight, and management and industry
expertise. Our venture partner has validated our
technology and the potential of rich media
communication industry for the future.   The
global conferencing infrastructure industry is
expected to grow from US375 million in 2000 to
over US1.25 billion in 2005, a compound annual
growth rate of over 27. Wainhouse Research
forecasts that the overall conferencing services
market will grow by 22 over the five year
forecast period to US9.8 billion in 2006. Web
conferencing services are forecast to have the
highest five-year compound annual growth rate -
over 42.


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