This report contains the latest market data for Android, Smartphone and PMP/MP3, obtained from public sources. 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. Highlights: >500GB capacity, 1080p playback, 4.3” touch screen, Wifi/Bluetooth, dual boot with Rockbox and more……. 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 31th January 2010

2. Statistics from Gartner & iSuppli Portable Electronics Ltd © 2009

3. Portable Electronics Ltd © 2009 Statistics from Euromonitor

4. Android is the future Statistics from T-mobile, Strategy Analytics, Admob & Gartner. Portable Electronics Ltd © 2009

5. Android is the future Admob Statistics Portable Electronics Ltd © 2009

6. Why Android is the future? Open Source, free to use and modify >16,000 applications available now Adopted by >59 carriers in >48 countries in 2009 with >20 handsets + other devices available (http://tinyurl.com/mwd3zl) >50 new devices expected in 2010 Backed by Google & Open Handset Alliance Statistics from Google, WiseAndroid, Androidtapp, Computerworld Portable Electronics Ltd © 2009

7. Why Android is the future? “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” 68 million Android handsets will ship by 2013 Comscore, ChangeWave, US data IDC Portable Electronics Ltd © 2009

8. Why Android is the future? Admob Statistics

9. Android Applications Flurry predicts the number of Android applications will catch up with Apple store’s 300,000 applications by end of 2010 Average price of paid app is US$3.5, Distimo reports

10. Statistics by Flurry Portable Electronics Ltd © 2009 Android Application Share September 2008 Total = 10,072 applications/games Free = 64.2%, Paid = 35.8%

11. Why also use? Rockbox is an open source firmware for mp3 players, written from scratch. It runs on a wide range of players: Advantage: Open Source (customizable), good audio quality, longer battery life, supports more audio format + functions Apple: 1st through 5.5th generation iPod, iPod Mini and 1st generation iPod Nano(not the Shuffle, 2nd/3rd/4th gen Nano, Classic or Touch) Archos: Jukebox 5000, 6000, Studio, Recorder, FM Recorder, Recorder V2 and Ondio Cowon: iAudio X5, X5V, X5L, M5, M5L, M3 and M3L iriver: iHP100 series, H100 series, H300 series and H10 series Olympus: M:Robe 100 SanDisk: Sansa c200 series, e200 series and e200R series (not the v2/AMS models) Toshiba: Gigabeat X and F series (not the S series) http://www.rockbox.org Portable Electronics Ltd © 2009

12. Portable Electronics Ltd © 2009

13. Portable Electronics Ltd © 2009 Statistics from Euromonitor

14. Portable Electronics Ltd © 2009 Statistics from Euromonitor

15. Direct Android PMP competitors Up to 30th October 2009

16. Current PMP prototype board Portable Electronics Ltd © 2009

17. Price Comparison Is our pricing/features competitive?

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

19. 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

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

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

23. Cling Explorer http://hdmp4.com/Cling

24. More coming….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