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. We also offer Android hardware, software, market consultancy and sourcing service. Highlights: >500GB capacity, 1080p playback, 4.3” touch screen, Wifi/Bluetooth, dual boot with Rockbox and more……. 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 25th June 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 Android is the future 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 Android is the future Admob Statistics Look at the rapid emergent and dominance of Android OS in the US…

7. Portable Electronics Ltd © 2010 Android is the future comScore Statistics, 3 months average Fact: comScore’s data also reflect the increasing dominance of Android. Nov-09 vs Feb-10, added 5.2% Android subscribers

8. Portable Electronics Ltd © 2010 Android is the future 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. Android is the future Rapid Android evolution Portable Electronics Ltd © 2010

10. Android is the future Portable Electronics Ltd © 2010

11. Portable Electronics Ltd © 2010 Android is the future 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 Android is the future 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 Android is the future 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. Why Android is the future? Open Source, free to use and modify >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, WiseAndroid, Androidtapp, Computerworld Portable Electronics Ltd © 2010

17. Is Android the future? 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

18. 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 Distimo Statistics by Google

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

20. Mobile Applications 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 Portable Electronics Ltd © 2010

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

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

23. 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

24. Portable Electronics Ltd © 2009

25. Portable Electronics Ltd © 2009 Statistics from Euromonitor

26. Portable Electronics Ltd © 2009 Statistics from Euromonitor

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

28. Current PMP prototype board Portable Electronics Ltd © 2009

29. Price Comparison Is our pricing/features competitive?

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

31. 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

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

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

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

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

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

38. 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