Press Release on May 10, 2001

Q9 Technology Announced the Listing Plan on GEM
by way of Placing of 250 Million Shares

Exploits the Patent Invention of 'Matrix Mapping System'
to Make Q9 Everywhere

Q9 Technology Holdings Limited ('Q9', the 'Company', together with its subsidiaries, the 'Group'; stock code: 8129) announced today its proposed listing plan on the Growth Enterprise Market ('GEM') of The Stock Exchange of Hong Kong Limited by placement of 250 million new shares ('Share Offer').

Q9 Technology Holdings Limited is one of the leading technology companies in Hong Kong engaged in software and embedded systems development. The Group's principal technological innovation is its patented 'matrix mapping system' for inputting characters of different languages and other data and operating the functions and features of small and medium sized electronic appliances such as mobile telephones and PDAs.

Anglo Chinese Corporate Finance, Limited ('Anglo Chinese') is the Sponsor of the Share Offer and DBS Asia Capital Limited ('DBS') is the bookrunner and lead manager. The Company is initially offering 250 million shares by way of placing at an issue price of HK$0.45 per placing share. Q9's shares will commence trading on GEM on May 18, 2001 (Friday).

Q9 has a strong shareholding base including Asia Orient Holdings Limited (214) and Culturecom Holdings Limited (343). Upon the successful listing of the Company, Asia Orient and Culturecom will remain the major shareholders of the Company and hold 32% and 24% of the Company respectively while the management will hold 24%, the remaining 20% being held by the public.

Q9 CIS is marketed principally in Hong Kong, the PRC and Taiwan. Packaged software is available directly to retail customers, schools, institutions, corporations, distributors; and embedded application are licensed to manufacturer of mobile telephones, PCs, PDAs, and other electronic and information appliances.

To capture the rapid growth of mobile phones in the PRC, the Company has signed licensing agreements with five PRC based mobile telephone manufacturers, namely Hisense Co., Ltd, Xiamen Overseas Chinese Electronic Incorporation Limited, China Kejian Corporation Limited, TCL Holdings Company Limited and ZTE Corporation Mobile Communications Group. The Group has also signed licensing agreement with Radiotex International Limited for the licensing of Q9 CIS in the PDA products and signed a licensing agreement with Group Sense Limited to incorporate Q9 CIS into its hand held electronic products.

Commenting on the competitive edge of Q9 CIS, Mr Mark Leung, Chairman of Q9 noted, 'Q9 CIS in Chinese is a once-and-for-all solution for the three problems encountered in the present information technology industry for Chinese: First, Q9 makes inputting Chinese simple and can easily be adopted by any Chinese literate. Second, Q9 eliminates the difficulty of including traditional keyboard in small electronic devices. Third, Q9 enables large amount of text input in small devices to meet the upcoming challenge of 3G mobile communications.'

In addition, the Group is promoting Q9 CIS to more than 1,000,000 teachers and students of 1,300 schools in Hong Kong in collaboration with HKeducationCITY.net of Education Department of the HKSAR, so far, more than 450 schools in Hong Kong have adopted Q9 CIS in Chinese, representing a penetration rate of about 35%. The Group is fully confident that by the end of 2001, about 90% of Hong Kong schools will include Q9 CIS in their teaching curriculum. With the successful experience in Hong Kong, the company will promote Q9 CIS in Chinese to schools in the PRC and is fully confident that the innovation will be well-received by teachers and students in the PRC.

'Q9 CIS is the only character input system readily available in the market that can be applied to a variety of digital and communication products operating on different operational platforms including Window CE, Palm, Linux etc.. Furthermore, combined with stroke, glyph and pinyin or zhuyin in Q9 CIS input methods, it makes Chinese easy to learn and use with fast input speed and high accuracy. Q9 CIS is applicable to many languages, operating systems and electronic appliances. We foresee that Q9 CIS will become the most standard of character input system.'

In the future, the Group anticipates that a substantial amount of its revenue will be derived from licensing fees. Generally, licensing fees are charged on a per unit basis of the product incorporating the Group's licensed software. Moreover, the Group will continue to market its products by way of direct sales to retail customers, commercial and educational institutions and government departments.

The Greater China region is the most crucial market of the Group. Most of the 1.3 billion population merely rely on Chinese as the tool of writing and communication. The Greater China region lacks the input system that can operate on various platforms and products. Q9 CIS is a good match with this fast growing market. The Group believes that Q9 CIS for English, Japanese and Korean all have enormous market potential and are going to be launched in 2001. The Group also plans to launch Q9 CIS in Arabic, Thai and other European languages.

In addressing the future plan and prospects, Mr Leung said, 'As we believe the telecom market will continue to grow at an exponential rate, Q9 will focus on the Greater China region and the Asian market, and has either negotiated or signed agreements with clients and strategic partners in different parts of the world. Combining the efforts of our proactive and innovative technical and sales team, the Group believes that numerous users of electronic devices can enjoy the advantages brought by Q9 operating systems in the near future.'

After deducting related expenses, net proceeds of the Share Offer are estimated to about HK$92.5 million. They will be applied as follows:

• HK$22.1 million on research and development;
• HK$23.3 million on marketing and promotion;
• HK$13.3 million on establishing six distribution centers in six cities in the PRC;
• HK$26.0 million to repay amounts due to a related company and loans from shareholders; and,
• HK$7.8 million for general working capital required for the anticipated growth in the business of the group.

If the over-allotment option is exercised in full, additional net proceeds received from the exercise of the over-allotment option will be used as additional working capital of the Group.

Mr Leung concluded, 'Q9 anywhere is our vision. Our ultimate objective of the Group is to make Q9 CIS the standard operating system of all small-size electronic devices, and applicable to all technological products.'

For further information, please contact:

Q9 Technology Holdings Limited
Nicole Pang

Tel	: 2520 2226
Fax	: 2520 0550
E-mail	: info@q9tech.com
Website	: www.q9tech.com

Q9 Technology Holdings Limited Facts at a Glance

TRADING RECORD

The consolidated audited results of the Company: