Actoz

As one of the pioneers in online game starting in 1996, Actozsoft has been able to create a legendary product, Legend of Mir, and has been going through the difficulties over time as well. Actozsoft has started a new era since September this year to create an entertainment business in a constructive way based on our experiences of successes and failures in creativity business.

In the later part of this year, we have relocated our office to the central part of Seoul to increase the interactions with the industry and the market, have sold the real estate back to the City of Seoul worth of U?4.5M to focus on our core businesses, have been able to win over the legal disputes in Seoul and in Singapore, and will release our three new games that we have developed in house for the past three years starting in December 2005. The new games will start to generate actual revenues starting in the second quarter of 2006 in Korea and overseas, especially in China, Japan, and other Asian countries. We are also in the process of sourcing potential games in the industry with the local development studios, and expect those new games will generate additional revenues next year. We have launched our new logo as an effort to enhance our brand equity in the markets with the new games and growth strategy world wide.

Actozsoft sees an online game business as a part of the culture business with huge growth potential in the future. Also we believe a culture business should be global from creation of the content to the local distribution of the products worldwide. The competitive dynamics is becoming more of scale, of capital, and of intelligence, so thus global. We believe online game will be a part of our citizens¡¯ daily lives as the content and media get to converge over time. A famous Korean song would be a part of an online game in China and a famous Japanese animation would be a scene of an online game in Korea, and a famous Korean TV drama would be a part of an online game in Japan.

We are focusing on the online game business now, not to contain ourselves and our customers in just one part of a cultural domain, but to be an active participator in a global culture business with no boundaries.

We will do our best to deliver fun and value of the culture business to our customers and investors worldwide.

Thank you.