1. Jefferies Broadview A division of Jefferies & Company, Inc. Private Equity In Asia And China October, 2005 CONFIDENTIAL DRAFT Member, SIPC

2. Table of Contents Private Equity In Asia 1 Private Equity In China 16 Venture Capital In China 22 State Of The Chinese Technology Capital Markets 46 i

3. Private Equity In Asia 1

5. Private Equity Trends In Asia Annual Fund Pool $5.1 $1.1 $2.2 $2.8 $5.1 $1.0 $1.5 $2.1 $3.7 $0.5 $0.9 $0.6 $0.5 $1.2 0 1 2 3 4 5 6 7 8 9 2001 2002 2003 2004 Jun-05 Australia & New Zealand Japan Asia (excluding Japan) Source: Asia Private Equity Review, 2005 (US $Billions) 3

6. Geographical Focus Of New Asian Private Equity Funds GCR * China Japan S. Korea India Taiwan Buyout Growth / Expansion Technology $2.73 $0.20 $0.15 $0.10 $0.05 $0.71 $0.28 $0.21 $0.30 $0.10 $0.07 $0.17 $0.29 $0.31 $0.00 $0.50 $1.00 $1.50 $2.00 $2.50 $3.00 $0.01 * The Greater China Region includes Taiwan, Hong Kong, and People’s Republic of China ** Pan-Asia funds are those not limited to investing in particular regions or countries in Asia Source: Asia Private Equity Review, 2005 January - June 2005 (US $Billions) Country-Specific Region-Specific Across-Asia Pan-Asia ** Total: $5.67 Billion 4

7. Distribution Of New Funds By Type * Japan Only $0.00 $1.00 $2.00 $3.00 Asia / Pacific Excluding Japan $0.00 $2.00 $4.00 $6.00 Jan - Jun 2005 Buyout Growth / Expansion Technology Debt Infrastructure (6) (12) (8) (1) (13) (3) (3) (1) * Numbers in ( ) denote number of funds Source: Asia Private Equity Review, 2005 (2) (3) (7) (2) (US $Billions) Total: $5.15B Total: $1.58B Jan - Jun 2004 Jan - Jun 2005 Jan - Jun 2004 Total: $2.03B Total: $0.52B 5

8. Fundraising – Source Of Funds By Geography 49% 36% 14% 1% 100% Europe US Japan Asia By Organization 38% 25% 17% 12% 3% 1% 1% 5% Corporates Public Pensions Financial Institutions Government Organizations Insurance Companies Fund of Funds Multilaterals Others Source: Asia Private Equity Review, 2005 80% 60% 40% 20% 0% January - June 2005 6

9. Invested Asian Private Equity By Geography $1.53 $0.77 $0.74 $0.60 $0.53 $0.35 $0.19 $0.06 $0.01 $0.01 $0.003 $0.30 $0.003 $0.00 $0.50 $1.00 $1.50 $2.00 By Industry IT & Telecom Healthcare Infrastructure Consumer Goods Industrial Manufacturing Goods Services Banking and Finance Food and Beverage Construction Energy / Natural Resources Media Source: Asia Private Equity Review, 2005 January - June 2005 (US $Billions) Total: $5.09B 7 Japan China S. Korea USA India Australia Singapore Malaysia Thailand Vietnam Taiwan UK Switzerland $1.17 $1.02 $0.51 $0.46 $0.46 $0.41 $0.30 $0.30 $0.25 $0.10 $0.10 $0.00 $0.20 $0.40 $0.60 $0.80 $1.00 $1.20 $1.40

10. Exits Divestment Profile: Asia (January – June 2005) Number of Divestments: 87 IPO 38% Trade Sale 57% Others 5% * Excluding Xinyi Glass Source: Asia Private Equity Review, 2005 8 -38% 4 th Quartile 23% 24% 3 rd Quartile 52% 54% 2 nd Quartile 97% 101% 1 st Quartile 449% IRRs Range *

11. Representative Private Equity Investments In Asia Hong Kong Taiwan India China Date Announced Target Name Acquirer Name Transaction Value (US $Millions) Jan-05 Hanfeng Power Plant CITIC Group; Huaneng Power International Inc. $450 Aug-05 China Pacific Life Insurance The Carlyle Group $400 Mar-05 Lenovo Group Ltd TPG, GA, Capstar, GapCo, Newbridge $350 Mar-05 MediaNation Inc JCDecaux Pearl & Dean Ltd $52 Aug-05 Hopson Development Holdings Limited Aranda Investments Pte Limited; Tiger Global LP (formerly Tiger Technology LP) $126 Aug-05 Best Quality Ltd Ace Level Investments Ltd $66 Sep-05 Media Partners Intl Hldg Inc JCDecaux Pearl & Dean Ltd $92 Sep-05 Top Regent(Asia)Ltd Ace Cosmos Finance Ltd $103 Aug-05 First Securities Co Ltd Taiwan Intl Securities Corp $80 Aug-05 Global Securities Finance Corp Taiwan Intl Securities Corp $257 Sep-05 Taiwan Yunda Sec Invest Trust Yuanta Core Pacific Sec Co Ltd $68 Jul-05 Aircel Ltd Clarity Partners LP $75 Jul-05 Associated Cement-Refractory ICICI Venture Funds Mgmt Co $59 Jul-05 BPL Communications Ltd Essar Teleholdings Ltd $997 Sep-05 Shriram Hldgs(Madras)Pvt Ltd Newbridge Capital LLC $100 Deal Type Minority Investment Minority Investment Minority Investment Acquisition Minority Investment Control Investment Control Investment Acquisition Acquisition Acquisition Control Investment Minority Investment Acquisition Control Investment Minority Investment Source: MergerMarket / Thomson One Banker 9

12. Representative Private Equity Investments In Asia South Korea Singapore Japan (US $Millions) Date Announced Target Name Acquirer Name Transaction Value Deal Type Jan-05 BENEX Corp Tokio Marine Capital Co Ltd $97 Acquisition Jan-05 Daikyo Inc ORIX Corp $223 Minority Investment Feb-05 Sankei MKS Partners Ltd $153 Control Investment Feb-05 Seibu Railway Co Ltd M&A Consulting $4,113 Acquisition Mar-05 Daiei Inc Marubeni Retail Investment, DRF $590 Minority Investment Mar-05 SDS Biotech KK SDS Biotech Holdings $96 Acquisition May-05 Recruit Co Ltd Advantage Partners, Aozora Bank $511 Minority Investment May-05 Recruit Cosmos Co Ltd 13 investors led by Unison Capital Partners $339 Control Investment May-05 SMBC Capital NIF Ventures Co Ltd $131 Acquisition Jun-05 Fujita Corporation Goldman Sachs Capital Partners, Mori Trust Co. Ltd $384 Control Investment Jul-05 Gakken Credit Corp NIF Capital Partners B $71 Control Investment Aug-05 Shionogi Qualicaps Group The Carlyle Group, LLC $227 Acquisition Aug-05 Pokka Corp Advantage Holdings and management $209 Acquisition Sep-05 World Co Ltd Harbor Holding Alpha Co $1,960 Acquisition Jan-05 Fila Korea Ltd Yoon Yoon-soo and management $130 Acquisition Jul-05 Hyundai Autonet Company Hyundai Motor Corporation; Siemens AG $233 Minority Investment May-05 Parkway Holdings Ltd Newbridge, TPG-Axon Capital $188 Minority Investment Jul-05 Raffles Holdings Ltd Colony Capital, LLC $1,014 Acquisition Jul-05 BIL International Ltd Guoco Group Ltd $707 Acquisition Aug-05 MobileOne Limited SunShare Investments Sdn. Bhd. $157 Minority Investment Aug-05 Asia General Holdings Ltd Southern Bank Bhd $551 Minority Investment Sep-05 Mentor Media Ltd MM Holdings Ltd $100 Acquisition Source: MergerMarket / Thomson One Banker 10

13. Fund Raising / Raised * A private equity firm that is tied to a larger organization, typically a bank, insurance company or corporate ** Pan-Asia funds are those not limited to investing in particular regions or countries in Asia *** Started by Michael Kim, Carlyle Group's former co-head of buyouts in Asia Source: Asia Private Equity Review, 2005 Target 1st Close 2nd/ Final Close Captive * Buyout Technology Government Sponsored Pan-Asia ** ADM Capital Adam Maculus Fund $500 $138 Crest Capital Partners Value Monetization Fund $100 $33 CVC Asia Pacific Ltd CVC Capital Partners Asia Pacific II, LP $1,000 $1,975  General Enterprise Management Services Ltd. GEMS III Fund  $300-500 H&Q Asia Pacific Asia Pacific Growth Fund V $500 $100 HSBC Private Equity (Asia) HSBC Technology Asian Ventures Fund Ltd  $40-80 $40  Inter-Asia Venture Management InterAsia Capital $150 JAIC Asia Capital Pte Ltd & UOB Bioventures Management UOB JAIC Venture Bio Investments $20 $12   Kendall Court Capital Partners Kendall Court Mezzanine (Asia) Fund I  $75 $35 MBK Partners *** MBK Partners LP   $1,000 $750  Morgan Stanley Private Equity  $500 Navis Capital Partners Navis Asia Fund IV, LP $250-300 Undisclosed  Olympus Capital Holding Asia Olympus Asia Regional Fund $500 $180 Pangaea Capital Management Pangaea Asia Special Investor Fund  $300 Pangaea Capital Management Pequot Pangaea Asia Opportunities Fund  $300 Pangaea Capital Management  $900 TaiAn Technology Corp. Qi Hang Venture Capital  NT$1B (US$32m) NT$1B (US$32m)   SEAVI Advent Corp SEAVI Advent IV Fund $100 $18 $70 1st Fund Launched 2005 Fund Name Geographical Focus & Firms Fund Nature Status January - June 2005 (US $Millions) 11

14. Fund Raising / Raised January - June 2005 (US $Millions) Target 1st Close 2nd/ Final Close Captive * Buyout Technology Government Sponsored Greater China AsiaTech Ventures Ltd AsiaTech Knowledge IV  $100  AsiaVest Partners TCW/YFY AsiaVest Opportunities Fund IV $300 $100 $270  London Asia Capital & Global Emerging Markets Creater China Fund $200 SAIF Advisors SAIF II  $500 $640 Shaw, Kwei & Partners Asian Value Investment Fund II $50 $25 $50 WI Harper Group WI Harper INC Fund VI $100-150  1st Fund Launched 2005 Fund Name Geographical Focus & Firms Fund Nature Status * A private equity firm that is tied to a larger organization, typically a bank, insurance company or corporate Source: Asia Private Equity Review, 2005 12

15. Fund Raising / Raised January - June 2005 (US $Millions) Target 1st Close 2nd/ Final Close Captive * Buyout Technology Government Sponsored China Actis Capital Actis China Fund $200 undisclosed BioVeda Capital BioVeda China Fund  $40 $40  CDH Investments CDH China Growth Capital Fund II  $310 $162 China Enterprise Capital Ltd. China Enterprise Capital Fund  $100 $30 $70 China Renaissance Capital Investment Inc.  $1,000 Colony Capital / Shanghai Industrial Investment Corp Yangtze Special Situations Fund $500 $100   Fortune Venture Investment Group Nanjing Fortune Communications Fund RMB200m (US$24m) RMB30m (US$3.5m)  Gobi Partners, Inc. Gobi Fund, Inc.  $75 $30  Infinity Venture Capital Fund Infinity-CSVC Ventures LP $75  Intel Capital Intel Capital China Technology Fund  $200   Kingsway Group Golden China Resources Corporation  $50 $17 MVC Corp  $28 $28   SAIF Advisors Ltd. SAIF Growth Venture Capital  $20 $20    Shenzhen Capital Group Co. China Dragon Fund $100-150  Shenzhen Capital Group Co. / Platium Neuron Ventures China Isreal Venture Capital  $80 Softbank Investment Corp / Temasek Holdings New Horizon Fund  $100 $100   SZVC-UOB Venture Management Co. SZVC II $50  Tsinghua Venture Corp. China Environment Fund 2004 1st Fund Launched 2005 Fund Name Geographical Focus & Firms Fund Nature Status * A private equity firm that is tied to a larger organization, typically a bank, insurance company or corporate Source: Asia Private Equity Review, 2005 $30 $15  13

16. Fund Raising / Raised January - June 2005 (US $Millions) Target 1st Close 2nd/ Final Close Captive * Buyout Technology Government Sponsored Korea Bogo Fund   $988  H&Q Asia Pacific  $400 $200  Hana Bank, Cambridge Capital Partners IMM Private Equity Hana-Cambridge-IMM Private Equity Partners $100-150 $50  Ilshin Investment Global Star Korea Fund  $100-200 $50  JAFCO Asia Korea SME Fund  $50  Mirae Asset Venture Investment Mirae Asset Partners No. 1 Private Equity $96 Shinhan Private Equity  $150 STIC Ventures STIC Pioneer Fund $19.2 $9.6 Woori Capital Woori No. 1 Private Equity Fund $201 1st Fund Launched 2005 Fund Name Geographical Focus & Firms Fund Nature Status Individuals Investors** * A private equity firm that is tied to a larger organization, typically a bank, insurance company or corporate ** Led by Byeon Yang Ho, a former official from the Ministry of Finance Source: Asia Private Equity Review, 2005 14

17. Fund Raising / Raised January - June 2005 (US $Millions) Target 1st Close 2nd/ Final Close Captive * Buyout Technology Government Sponsored Japan Arise Capital Partners, Inc. Arise No. 1 LP  $96  Biofrontier Partners Biofrontier Global II Investment Enterprise Partnership $48-95  Biotech-Healthcare Partners  $50-70  Biovision Capital Corp Biovision Lifescience Fund No. 1  $25  CITIC Provident Capital Management Ltd. CITIC Japan Partners LP  $190 $140 $168  DLIBJ Asset Management & Polaris Principal Finance $287  Dowa Mining Co. Dowa Techno Fund  $45   Globis Capital Partners Globis Fund III LP $181  Japan Asia Investment Co. JAIC - Bio No. 2 LP $28.2 $20  Japan Asia Investment Co. JAIC Corporate Rehabilitation No. 1 $16.6 $8.3  JBF Partners  $96  Longreach Group Longreach Capital Partners $500 $170  Mizuho Capital Co. Ltd. Mizuho Capital No. 2 LP $191 $149  NIF-PAMA Management NIF-PAMA Japan Private Equity Fund $300-500 $125 $132   SBI Ventures KK SBI BB Media Investment Corp Limited Liability Fund  $463 $185  Technology Alliance Investment Ltd. Innovation Carve Out Fund  $138 $138    1st Fund Launched 2005 Fund Name Geographical Focus & Firms Fund Nature Status * A private equity firm that is tied to a larger organization, typically a bank, insurance company or corporate Source: Asia Private Equity Review, 2005 15

18. Private Equity In China 16

20. M&A In China The Number of M&A & MBO Deals in China Listed Companies No. of M&A No. of MBO Source: 21st Century Business Herald 103 119 168 172 94 1 2 5 8 8 0 20 40 60 80 100 120 140 160 180 200 2000 2001 2002 2003 Q3'2004 0 2,000 4,000 6,000 8,000 10,000 12,000 14,000 16,000 18,000 Q1 2003 2004 Announced Mergers and Acquisitions - China Value US $Millions No. of Deals Q2 Q3 Q4 Q1 Q2 Q3 Q4 2003 2003 2003 2004 2004 2004 0 10 20 30 40 50 60 70 Source: Thomson Financial / 21 st Century Business Herald, 2005 18

21. Leading Private Equity Firms in China * * In alphabetic order Source: Zero2IPO, 2005 Foreign Domestic Millennium Ark Investment Co 19

22. Representative Private Equity Investments In China (US $Millions) Date Announced Target Name Acquirer Name Transaction Value Deal Type Jan-05 Hanfeng Power Plant CITIC Group; Huaneng Power International Inc. $450 Minority Investment Mar-05 Huishan Dairy CLSA Private Equity, Japan Asia Investment $15 Acquisition Mar-05 Sichuan New Hope Agribusiness IFC $45 Minority Investment Apr-05 Inner Mongolia Yili Indl Co Huhehaote Investment Co Ltd $36 Minority Investment Apr-05 Zhengzhou Yutong Bus Co Zhengzhou Yutong Group Co Ltd $13 Minority Investment Jun-05 Shanghai Hongxing Optical HAL Investment Asia BV $26 Control Investment Jun-05 Zhejiang Conba Pharm Co Zhejiang Zhongye Invest Co Ltd $12 Minority Investment Aug-05 China Pacific Life Insurance The Carlyle Group $400 Minority Investment Aug-05 Hunan Liuyang Fireworks Co Ltd Guangzhou Panda Intl Invest Co $7 Minority Investment Aug-05 Insigma Technology Co Hangzhou Funeng Indl Co Ltd $9 Minority Investment Aug-05 Liuzhou Liangmianzhen Co Led by Shantou Guangda $9 Minority Investment Sep-05 Jiangsu Kanion Pharm Co Lianyungang Tianshi Investment $7 Minority Investment Sep-05 Hans Laser Technology Co Shenzhen Dazu Indl Co Ltd $6 Minority Investment Sep-05 Ningbo Beifa Group Standard Chartered Private Equity Ltd. $17 Minority Investment Sep-05 Shanghai Feilo Acoustics Co Shenzhen Tsinghua Lihe Venture Capital Investment Co $32 Minority Investment Sep-05 Wuxi Worlbest Treeful Pharma Pharmaniaga Pegasus Seychelles $6 Minority Investment Sep-05 Yuetan Supermarket China Resources Entrp Ltd $16 Acquisition Sep-05 Zhejiang Cikelong Supermarket China Resources Entrp Ltd $35 Acquisition Oct-05 Team & Sports Ltd Umbro PLC $12 Minority Investment Source: MergerMarket / Thomson One Banker 20

23. Representative Strategic Investments In China Date Announced Target Name Acquirer Name Transaction Value (US $Millions) Jan-03 PuDong Development Bank Citigroup $72 Dec-03 Industrial Bank Hang Seng Bank $208 Aug-04 Bank of Communications HSBC $1,750 Jan-05 Huaan Securities Merrill Lynch $32 Mar-05 Bank of Beijing ING Group $215 Apr-05 China Dragon Fund Management UBS Asset Management NA Jun-05 China Construction Bank Bank of America $3,000 Sep-05 Beijing Securities UBS Warburg $210 Sep-05 Bank of China UBS Warburg $500 Sep-05 Bank of China Temasek Holdings $3,100 Sep-05 Bank of China Royal Bank of Scotland, Merrill Lynch, Li Ka Shing Foundation $3,100 Sep-05 Industrial and Commercial Bank of China Goldman Sachs, Allianz, American Express $1,100 Sep-05 Tianjin Bohai Bank Standard Chartered Bank $123 Sep-05 Huaxia Bank Deutsche Bank $330 Source: WSJ.com / Forbes.com 21

24. Venture Capital In China 22

25. Venture Capital Investment Trend In China $542.53 $332.21 $438.06 $466.71 $402.45 111 81 80 51 66 $0 $100 $200 $300 $400 $500 $600 2003H1 2003H2 2004H1 2004H2 2005H1 0 20 40 60 80 100 120 Amount Invested Number of Deals Source: Zero2IPO, 2005 (US $Millions) 23

27. Investments By Industry By Number of Deals By Amount Invested Source: Zero2IPO, 2005 January - September 2005 25

28. Investments By Deal Stage Number of Deals Amount Invested Source: Zero2IPO, 2005 January - September 2005 26 Pre-IPO 2.5% Start-up 28.4% Growth 38.3% Expansion 12.3% Mature 6.2% Unknown 12.3% Unknown 9.6% Pre-IPO 20.3% Mature 27.1% Expansion 19.2% Growth 17.0% Start-up 6.8%

29. Invested Capital By Industry $0.05 $1.21 $1.50 $1.77 $3.37 $6.40 $7.00 $30.57 $40.40 $46.15 $51.28 $80.00 $129.27 0 $20 $40 $60 $80 $100 $120 $140 Environmental Protection Computer Hardware & Peripherals Software IT Services Internet Services Telecommunications New Energy Traditional IC New Materials Healthcare Opto-electronics Source: Zero2IPO, 2005 January - September 2005 (US $Millions) 27

30. Number Of Deals By Industry 1 1 1 1 2 4 4 5 7 8 12 16 19 0 2 4 6 8 10 12 14 16 18 20 IT Services Computer Hardware & Peripherals Environmental Protection New Energy Opto-electronics New Materials Healthcare Software IC Services Traditional Telecommunications Internet Source: Zero2IPO, 2005 January - September 2005 28

31. Average Deal Size By Industry $0.44 $0.60 $0.67 $1.50 $1.60 $2.38 $3.85 $4.37 $6.84 $7.00 $8.62 $80.00 0 $10 $20 $30 $40 $50 $60 $70 $80 $90 Environmental Protection Healthcare Opto-electronics Software Computer Hardware&Peripherals New Materials Internet Traditional IC Services IT Services Telecommunications New Energy Source: Zero2IPO, 2005 January - September 2005 (US $Millions) 29

32. Invested Capital By Geography $38.93 $0.60 $0.93 $1.00 $1.29 $7.08 $17.55 $23.09 $24.33 $25.03 $90.87 $171.75 0 $20 $40 $60 $80 $100 $120 $140 $160 $180 $200 Unknown Anhui Hubei Chongqing Zhejiang Hunan Shandong Shenzhen Guangdong (excluding Shenzhen) Shanghai Jiangsu Beijing Source: Zero2IPO, 2005 January - September 2005 (US $Millions) 30

33. Number Of Deals By Geography Source: Zero2IPO, 2005 January - September 2005 31

34. Investments By Fund “Nationality” Source: Zero2IPO, 2005 January - September 2005 (US $Millions) 32 $5.16 100.00% $402.45 78 100.00% 81 Total $8.35 $2.08 $8.22 Average Deal Size 14.50% 20.10% 65.30% Percentage $58.43 7 8.60% 7 Sino-Foreign Co-Investment $81.07 39 48.10% 39 Domestic $262.95 32 43.20% 35 Foreign Disclosed Amount Number of Deals with Disclosed Amount Percentage Number of Deals Type of VC

35. Representative Chinese Venture Capital Deals Source: Zero2IPO, 2005 January - September 2005 (US $Millions) 33 SAIF Partners Testing Service $14 ATA $10 $20 $30 $31.5 $35 $37 $80 Amount Invested Actis, Goldman Sach, DragonTech, Natexis Solar Cell and Module SunTech TVG, Warburg, DragonTech Telecom Equipment Harbour Networks GGV, SAIF Partners, BVP, Mobius Venture Capital Blog Service Bokee SAIF Partners Media Contents JoyMedia IDGVC, Oak Investment Partners Online Advertising Allyes.com Walden International, China Science & Merchants Telecom Software ChannelSoft SAIF Partners TV Shopping Acorn International Investors Business Company

36. Select Emerging Venture-Backed Companies Source: Zero2IPO, 2005 34 Fonenet The wireless value-added service provider. Panorama Stock The content provider of professional international photos ME-YOU The leading mobile multimedia instant messenger service provider. Qikan.com The leading online magazine subscription service provider in China. HeiYou The leading Social Networking Service Provider in China. BlogCN.com The leading blog hosting service provider in China. XiaoI The leading intelligent information search engine service provider. TianyaClub.com The largest online community in China. Ganji.com The leading classified localized information service in China

38. Exit Of Venture Investments In China Exit Route Number of Exits Percentage Amount Exited Percentage IPO 65 26% $574.63 51% M&A 19 8% $151.67 13% Trade Sale 122 49% $296.97 26% MBO 13 5% $6.28 1% Liquidation 2 1% $1.75 0% Other 11 4% $31.75 3% Unknown 18 7% $62.55 6% Total 250 10 0% $1125.6 100% Source: Zero2IPO, 2005 2002 - 2004 (US $Millions) 36

39. $ Value Of Those Exits $218 $106 $802 106% 268% 0 100 200 300 400 500 600 700 800 900 2002 2003 2004 0% 50% 100% 150% 200% 250% 300% Amount Exited Growth Rate Source: Zero2IPO, 2005 2002 - 2004 (US $Millions) 37

40. Venture Capital Return Rate In China Source: Zero2IPO, 2005 2003 - 2004 38

41. Venture-backed IPOs In 2005 Source: Zero2IPO, 2005 January - September 2005 (US $Millions) 39 Telecom Telecom Telecom Traditional Software Media Internet Industry DFJ, IDG, TDF, etc $109 NASDAQ 08/2005 Baidu.com CDH, SoftBank, DFJ, , TDF, WI Harper, 3i,etc $171 NASDAQ 07/2005 Focus Media GGV, Fidelity, etc $70.52 NASDAQ 02/2005 Hurray! Intel Capital, Qualcomm Ventures, etc. $141.8 NASDAQ 05/2005 TechFaith DFJ, etc $18.37 SGX 05/2005 Longcheer Sun Ventures $5 SESDAQ 05/2005 Asia Silk 3i, etc. $44 HK Main Board 06/2005 GST Investors Amount Raised Market Listing Date Company

42. IPO Pipeline 2002 2003 2004 2005 Strong IPO Pipelines …… 2006-2008 Source: Zero2IPO, 2005 40

43. Venture-Backed M&A In China Acquirer Acquiree Index Corporation Source: Zero2IPO, 2005 January - September 2005 41

44. Potential Acquirers Type I: China-based Public Companies Type II: Private Venture-backed Companies Type III: Foreign Giants Source: Zero2IPO, 2005 42

45. Active VC Firms Year To Date GSR Ventures Localization of Top International VC Firms New Emerging VCs in China Rising Stars in Year 2005 Strong Investment Activities As Ever The IPO Winners Source: Zero2IPO, 2005 43

48. State Of The Chinese Technology Capital Markets 46

49. Chinese Technology Companies Have Historically Gone Public On The NASDAQ 5 10 15 20 2000 2001 2002 2003 2004 2005 Number of M&A Exits 0 5 10 15 20 2000 2001 2002 2003 2004 2005 Other Dual Listing Singapore Nasdaq HK GEM Hong Kong Exit Strategy In 2004, Nearly 50% Of Chinese Technology Companies Listed Solely On The NASDAQ IPO Exit M&A Exit Dual Listing includes all companies listed on more than 1 exchange Other includes Shenzhen, Tokyo, Shanghai and New York Source: SDC. Excludes transactions where IPO gross proceeds and M&A deal values were < $25 million 0 47 8 6 2005 5 16 2004 Total 2003 2002 2001 2000 54 46 7 1 4 2 10 2 20 19 M&A IPO

50. U.S. Listed Chinese Technology Companies Are Growing Rapidly The Number Of NASDAQ And NYSE-Listed Companies In China Have Doubled Since December 2003 * 5 companies are listed on the NYSE. The remaining are listed on the NASDAQ Aggregate Market Cap: Telecom Aggregate Market Cap: Non-Telecom Number of NASDAQ and NYSE-listed Companies in China 48 11 11 12 13 26* 30* 0 10 20 30 40 50 60 70 80 Dec-00 Dec-01 Dec-02 Dec-03 Dec-04 Current 0 5 10 15 20 25 30 35 Number of Companies (Market Cap in $B)

51. Chinese Technology Capital Markets Activity In 2004 and 2005 YTD * As of 5/30/05. Source: Broadview’s IPO Database / Hoover’s IPO Central / Capital IQ Issue Date Name Offering Type Offering Amount TTM Revenue TTM Revenue Growth Quarters of Profitability TTM EBITDA Margin % Change From Offering* TMC / TTM Revenue TTM P/E 8/5/05 Baidu.com IPO 109.1 16.8 253% 6 34% 169% NM NM 7/13/05 Focus Media Holding IPO 197.5 43.8 1,067% 8 42% 35% 14.73 x 22.86 x 5/5/05 China Techfaith Wireless IPO 141.8 59.0 510% 6 47% (39%) 14.60 x 31.30 x 2/3/05 Hurray! IPO 70.5 54.4 131% 6 37% (2%) 2.85 x NM 12/16/04 Ctrip.com Follow-On 92.8 36.6 121% 10 44% 37% 18.29 x 52.92 x 12/14/04 The9 IPO 103.3 3.4 183% 7 11% 19% 92.11 x 76.96 x 12/2/04 Ninetowns IPO 105.6 21.1 43% 15 66% (54%) 14.14 x 23.70 x 11/10/04 China Netcom Group IPO 1,141.1 7,663.4 10% 14 52% 40% 1.74 x 9.70 x 10/27/04 eLong IPO 62.1 13.3 94% 0 4% (6%) 20.48 x NM 10/22/04 Shanda Convertible Debt 275.0 102.7 161% 10 43% NA 15.56 x 48.43 x 10/15/04 China Finance IPO 80.6 3.5 122% 8 1% (56%) 37.08 x 77.84 x 10/7/04 Hutchison Telecom. IPO 808.7 1,597.8 32% 2 27% 31% 3.32 x 67.84 x 9/28/04 51job IPO 73.5 45.9 77% 10 25% (4%) 21.14 x 143.43 x 7/8/04 Kongzhong IPO 100.0 14.3 3,798% 5 41% 34% 12.67 x 30.00 x 5/13/04 Shanda IPO 152.4 72.6 84% 8 43% 150% 26.27 x 59.82 x 3/12/04 SMI IPO 1,712.9 365.8 627% 1 48% (55%) 7.89 x NM 3/5/04 TOM Online IPO 175.0 77.1 157% 4 30% 24% 5.60 x 13.90 x 3/4/04 Linktone IPO 86.0 15.5 285% 4 31% (20%) 3.94 x 22.60 x High 1,712.9 7,663.4 3,798% 15 66% 169% 92.11 x 143.43 x Median 107.4 44.9 144% 6.5 41% 19% 14.60 x 39.87 x Low 62.1 3.4 10% 0 4% (56%) 1.74 x 9.70 x (US $Millions) 49

53. Private Equity / VC Investment Activity For Chinese Technology Companies Continues To Be Strong (US $Millions) Representative Chinese Technology Investments Over The Past 12 Months While the majority of investment activity has been in the sub-$20 range, investors are increasingly gaining a higher level of comfort and looking to put more money into larger enterprises VC firms raised nearly US$700 million in 2004 for investing in Mainland China 51 General Atlantic $60.0 A-Max Technology Jul-05 NEA, Intel Capital, HSBC, GIC, Shanghai Industrial, RimAsia $80.0 (secondary) Actions Semiconductor Sep-05 IDG, Oak Investment Partners $30.0 Allyes Sep-05 Granite, Softbank, Bessemer, Mobius NA Bokee Sep-05 Granite, TDF $8.0 Oriental Wisdom Aug-05 RRE Ventures NA SmartPay Aug-05 Accel $10.0 Mopsite Jul-05 Japan-China Bridge $6.0 BeyondSoft Jun-05 Carlyle Group $20.0 Target Media Jun-05 Apax, Greylock $20.0 Fiberxon Jun-05 Legend, Doll Capital $6.0-7.0 Worksoft Jun-05 IDG, Qualcomm, Tom Online $3.5 Great Wall Software Aug-04 Granite, Intel, International Finance, JAFCO $20.0 HiSoft Oct-04 McGraw-Hill, Tiger NA PRCEdu Jan-05 2b Holdings, strategic investors $8.3 Smartpay Aug-04 Carlyle $15.0 Target Media Sep-04 IDG $5.0 Any8.com Oct-04 NA $16.9 Soutec Nov-04 Goldman Sachs, 3i $30.0 Focus Media Nov-04 Carlyle, Chengwei Ventures, Pacific Venture $13.0 Huaya Microelectronics Dec-04 3i $20.0 GST Dec-04 Kongzhong $0.5 eFriendsNet / Yeeyoo Dec-04 Carlyle, China Merchants, Fortune, Sino-Korea Wireless $14.0 9you Dec-04 Tiger Tech $11.0 Dangdang Dec-04 Siemens Mobile Acceleration, Morningside Tech $3.0 LinkRich Jan-05 Rensheng Fund $3.0 V516.com Jan-05 Softbank, Shanda $0.6 Blogchina Jan-05 Carlyle Group NA Easyeb Feb-05 TVG Capital, Temasek, Warburg Pincus, DragonTech $37.0 Harbour Networks Mar-05 IDG, Newbridge $12.1 HiChina / MyMai Mar-05 Jafco, Intel NA Pollex Mobile Mar-05 IDG NA wap.3g.net.cn Mar-05 TPG, General Atlantic, Newbridge $350 Lenovo Mar-05 IDG, Legend Capital $6.0 Zhongsou Mar-05 Union Fortune Investment $7.6 Gasoft Mar-05 IDG $10 Emay Softcom Apr-05 Legend, Fidelity, IDG $16.0 Zhongsou Apr-05 Gobi Partners, NTT DoCoMo, Dentsu $6.0 Digital Media Group Apr-05 IDG $4.0 Netmovie May-05 IDG $0.2 163888.net May-05 IDG, Sumitomo NA Tengwu Digi-Tech May-05 Dragon Groove $5.0 9you May-05 Investor(s) Capital Raised Company Date