This report contains the latest market data for Android, Smartphone and PMP/MP3, obtained from public sources. Some information on our company's upcoming Gen-E™ Android tablet is also included. Summary: >80GB capacity, 1080p video playback, 10” touch screen, WIFI Release Date: Q4 2010 Compiled and published by Portable Electronics Ltd. (Please view it in fullscreen mode)

1. Android, Smartphone & PMP Market Report Portable Electronics Limited is an international company with physical presence in New Zealand, Australia and China. We employ Dell Computer’s online 1-1 business model and currently do not own any retail shops or showrooms. We are focused on delivering a high quality multi-purpose Android based Portable Media Player at mainstream price to consumers world-wide. We also offer Android hardware, software, market consultancy and sourcing service. Gen-E™ Android tablet: >80GB capacity, 1080p video playback, 10” touch screen, WIFI Release Date: Q4 2010 Some examples of hardware/software solution we provide can be found @ http://www.hdmp4.com/catalog/15 For more information, or if you are interested to invest/collaborate with us. Please contact Eric Wong (Managing Director): eric@portable.geek.nz Or discuss in our Official forum: http://forum.hdmp4.com Portable Electronics Ltd Published/Updated on 15th July 2010

2. Growth and importance of Smartphone Portable Electronics Ltd © 2009 Statistics from Gartner & iSuppli

3. Growth and importance of Smartphone Gartner Statistics iSuppli Statistics Portable Electronics Ltd © 2010

4. Portable Electronics Ltd © 2009 Statistics from Euromonitor

5. Portable Electronics Ltd © 2010 Smartphone OS: Android Admob Statistics Fact: Android was first launched in the US in October 2008. Engadget: Motorola Droid is the home gadget, smartphone and GPS of 2009 Integrasco: Motorola Droid is 2nd most discussed handset in Q4 2009

6. Portable Electronics Ltd © 2010 Smartphone OS: Android Admob Statistics Look at the rapid emergent and dominance of Android OS in the US…

7. Portable Electronics Ltd © 2010 Smartphone OS: Android comScore Statistics, 3 months average Fact: comScore’s data also reflect the increasing dominance of Android. Feb-10 vs May-10, added 4% Android subscribers

8. Portable Electronics Ltd © 2010 Smartphone OS: Android NDP Group NDP group: Android smartphone sales to US consumers in Q1 2010 moved into 2nd position behind RIM Gartner: 48.7% increase of Smartphone sales to 54.3 million units in Q1 2010 compared to Q1 2009

9. Smartphone OS: Android Rapid Android evolution Portable Electronics Ltd © 2010

10. Smartphone OS: Android Portable Electronics Ltd © 2010

11. Portable Electronics Ltd © 2010 Smartphone OS: Android Admob Statistics Android is rapidly becoming significant world-wide. Integrasco: Android had the most “buzz” among mobile OS with 40% mention in Q4 2009

12. Portable Electronics Ltd © 2010 Smartphone OS: Android Admob Statistics “21% of those planning to buy a smart phone in the next 90 days say they'd prefer to have the Android OS” “In August 2009, just 22 percent of mobile users had heard of the Android, while in November 2009 this figure had reached 37 percent” Comscore, ChangeWave, US data

13. Though the majority of Androids still reside in North America

14. Portable Electronics Ltd © 2010 Smartphone OS Admob Statistics Fact: All carriers are offering Android mobiles in Australia. Prediction: Lots of potential and a matter of time before Android also becomes dominant in Australia, like the US.

15. Android vsiPhone Android is quickly catching up to iPhone’s user base?

16. Android’s advantage Open Source OS Support multitasking, multi-languages, multi-touch Highly customizable user interface Online synchronization of your contact list, calendar, etc Text-to-speech, Speech-to-text PC-like internet experience (WIFI/3G) VOIP, Video conference Widgets, 3D graphics, multi-media support Support GPS, accelerometer, compass, light, proximity sensor, bluetooth And much more…. Statistics from Google, WiseAndroid, Androidtapp, Computerworld Portable Electronics Ltd © 2010

17. The significance of Android >68,000 applications available now Adopted by >59 carriers in >48 countries in 2010 with >60 mobile devices from >21 OEMs available (http://tinyurl.com/mwd3zl) >50 new Android phones for 2010 showcased in Google I/O Backed by Google & Open Handset Alliance Statistics from Google Portable Electronics Ltd © 2010

18. Would Android survive? April 27, 2010: Microsoft Corp. and HTC Corp. have signed a patent agreement that provides broad coverage under Microsoft’s patent portfolio for HTC’s mobile phones running the Android mobile platform. Under the terms of the agreement, Microsoft will receive royalties from HTC. Rob Enderle, principal analyst for the Enderle Group in San Jose, California, estimates manufacturers have to pay Microsoft $20 to $40 per phone to license the intellectual property required for Android. “Android is going to fall off as an expensive and risky platform.” “Nobody wants to deal with Microsoft.” Portable Electronics Ltd © 2009

19. Portable Electronics Ltd © 2010 Official Android Market Statistics Flurry predicts the number of Android applications will catch up with Apple store’s 300,000 applications by end of 2010 May 2010: 180,000 Android developers world-wide reported by Google Statistics by Google

20. Unofficial Android Market Statistics Portable Electronics Ltd © 2010 Statistics by Androlib.com

21. How does Android app store compare?

22. Mobile Applications Portable Electronics Ltd © 2010 Worth US$17.5billion by 2012 In 2009, advertising contributed 12% of the overall apps revenue. Expected to more than double to >28% by 2012 In 2009 the number of app stores leapt from eight to 38 – an increase of 375% Average selling price in 2009 was approximately $1.9. This is predicted to decrease by 29% over the next three years. Statistics by GetJar

23. Application usage Portable Electronics Ltd © 2010 Admob survey Admob survey (Jan 2010) Admob survey (July 2009)

24. Is app store the future? Or is it another tech bubble? Iphone app store as example: Each device: 7 paid and 40 free apps downloaded, generates almost $14 of revenues per year. BUT the development of the typical app cost $35,000 and the median paid app earns $682 dollars per year after Apple took its cut. That will break even on App Development costs in... 51 years!!! “The free apps hysteria is totally a repeat of the previous tech bubble” - Tomi T Ahonen, June 2010 (http://tinyurl.com/26q39u8) Our solution: Android Hardware + software bundled business model, with tight collaboration with software companies/developers Portable Electronics Ltd © 2010

25. User Demographics Portable Electronics Ltd © 2010 Admob survey (Jan 2010) Google data

26. Portable Electronics Ltd © 2009

27. Portable Electronics Ltd © 2009 Statistics from Euromonitor

28. Portable Electronics Ltd © 2009 Statistics from Euromonitor

29. Gen-E™ 1080p Android hdd tablet Software/retail/distribution partners welcomed Portable Electronics Ltd © 2010

30. Highlights 1080p Video player, Music player Gaming E-book Internet browsing Information station, e.g. live feed of facebook, tweeter, news & weather widgets, etc Secured Portable File Storage (optional encryption) Pre-loaded with popular Android applications (which apk would you like to see preloaded?) Gen-E™ 1080p Android hdd tablet Portable Electronics Ltd © 2010

31. Android tablets Updated on 12th July 2010 Which one can do 1080p video, huge screen, have >80GB storage and available in Oceania?

32. Price/Features Comparison Which one is the best?

33. Why use hard disk? How many movies can you fit in 32GB flash disk? 80GB hard disk? 500GB hard disk? Statistics from Euromonitor

34. Our Business Model Manufacturing/OEM 500-1000pc per order Retail/Distribution Channels Local/Overseas retail shop, distributors Auction sites (ebay, trademe, etc) Online Shop, direct to consumer Australia, New Zealand, China & Overseas Complete device package with unique hardware/software features, no hidden accessories purchase Portable Electronics Ltd © 2009

35. Our Intellectual Property Trademark Trade-secrets Software (source codes) Known-how Sales/Distribution network Reputation/Brand Industrial knowledge/Vision Portable Electronics Ltd © 2009

37. Android hardware comparison chart http://tinyurl.com/mwd3zl

38. List of Top Free Android applications http://tinyurl.com/33wyqq5

39. Australia 3G APN settings http://www.hdmp4.com/APN

40. Android news http://hdmp4.com/aggregator/categories/2

41. Android app review/info http://hdmp4.com/aggregator/categories/3This presentation slide was prepared and presented to you by Portable Electronics Ltd. All statistics presented comes from public sources. We hope that you will find these information useful. For more information or if you are interested to invest/collaborate with us. Please contact Eric Wong (Managing Director): eric@portable.geek.nz Or discuss in our Official forum: http://forum.hdmp4.com Portable Electronics Ltd http://www.hdmp4.com