Q9 Technology Holdings Limited

Q9 Technology Announced 3Q Results With Turnover
Enjoying A Tremendous Surge of 40%

n Turnover increased by HK$2,027,000, or 40% to HK$7,097,000

n Sold packaged systems to over 30 government departments and registered as an approved supplier of 66 government departments in Hong Kong

n Established distribution centers in Shenzhen and Guangzhou, while at the same time, the Group is actively exploring for business opportunities and setting up a distribution center in Dalian during the last quarter of 2001.

n Appointed the distribution company of the Guangzhou Daily group to distribute and promote its Q9 CIS.

n Launched Q9 2001 (the PRC version) in August 2001 and completed Q9 2002 (both Hong Kong and the PRC version) for launching in December of 2001.

n Signed Non Disclosure Agreements with six major international mobile phone companies and with over ten OEMs of various kinds of devices that are based in PRC, Hong Kong or Taiwan.

(November 15, 2001, HONG KONG) ¡V Q9 Technology Holdings Limited ('Q9', the 'Company', together with its subsidiaries, the 'Group'; stock code: 8129) announced today its third quarter results for the nine months ended September 30, 2001. During the period under review, turnover surged by 40%, or approximately HK$2,027,000, to amount to HK$7,097,000. Profit margin maintained at a level of approximately 90%.

The growth in turnover was mainly attributable to the increase in sales of Q9 CIS in Hong Kong, which recorded an increase of 36%, or approximately HK$1,306,000. New sources of income totaling to HK$800,228, deriving from licensing Q9 CIS to schools, corporations and also from several original equipment manufacturers (OEM). The Group anticipated that a further increase in selling and distribution expenses would be incurred in the last quarter of 2001, as a number of marketing programs will be launched to promote the Q9 CIS in Hong Kong, the PRC and Taiwan.

The Group expanded market channels to over 1,500 retail outlets for packaged system sales of Q9 CIS in Hong Kong, and additional department stores and retail chain stores have agreed to market and promote the Q9 CIS through their stores. The Group recently licensed its Q9 CIS web version to the Internet white pages, which allow web users to search for telephone numbers via the Internet. The Group successfully sold its software packages to approximately 30 government departments and has been registered as an approved supplier for 66 government departments.

In PRC, the Group has signed distribution agreements with a number of software distribution companies with over 60 retail outlets in Guangdong province and has also engaged the distribution company of the Guangzhou Daily group to distribute and promote its Q9 CIS to further promote its usage and popularity.

Mr Mark Leung, Chairman of Q9, said, 'We have only commenced marketing and sales of Q9 CIS in the PRC since August 2001, and progress has already been satisfactory. So far the response from our customers and potential clients are highly positive.'

In the future, the Group will target its marketing and promotional activities to reach the mass of customers through cost effective means. The Group has established distribution centers in both Shenzhen and Guangzhou during the period under review and will continue to expand its sales force in both cities. Meanwhile, the Group has also been actively exploring for business opportunities and is expecting a distribution center to be set up in Dalian during the last quarter of 2001.

'By leveraging our success on government departments and education institutions in Hong Kong, the Group is now targeting to capture the government, education sector in the PRC. We plan to will grant free licenses to primary and secondary schools in the PRC so as to promote the usage of Q9 CIS as a teaching tool among these schools and expand Q9 user base.'

The Group will continue to commit its efforts on research and development of new products. Q9 2002 (both the Hong Kong and the PRC version) has been completed and is expected to be launched in December 2001. Q9 2002 includes features that further enhance both the input speed and the ease of use of Q9 CIS.

The Group has completed the development of the Q9 English version in June 2001, and subsequently further enhance the functionality and input speed of the product in the latest version. The Group is currently also developing the Q9 version for French, and is intending to expand its language development team in the PRC to facilitate the development process of Q9 for other languages.

Commenting on the future development of Q9, Mr. Leung concluded, 'The Greater China region is the most important market for the Group. The region lacks an input system that can operate on various platforms and products. We have introduced our product to several government departments to co-promote Q9 CIS through their training centers and the response has been very encouraging. In addition to three international portable phone companies who are evaluating their profitability which had embedded Q9 CIS, we have signed non-disclosure agreements with three other international mobile phone companies, and with over ten OEMs of various kinds of devices based in the PRC, Hong Kong or Taiwan. Q9 CIS is the ideal product for handheld and mobile communication device market, as it possesses all the qualities it needs to succeed in this fast growing market.'