Q9 Technology Announced 1Q Results

With Uninterrupted Turnover

 

Act

 

(May 13, 2002, HONG KONG) ¡V Q9 Technology Holdings Limited (¡¥Q9¡¦, the ¡¥Company¡¦, together with its subsidiaries, the ¡¥Group¡¦; stock code: 8129) announced today its first quarterly results for the three months ended March 31, 2002. During the period under review, turnover decreased approximately HK$498,500 to HK$1.44 million, which was mainly attributable to the retail sales of Q9 CIS in Hong Kong.

 

Mr. Mark Leung, Chairman of Q9, said, ¡§For the first quarterly result for the three months ended March 31, 2002, we have been continuously realizing our business objectives set out in the prospectus and are currently under actual business progress. Besides expanding our distribution network in the PRC area and increasing our marketing effort in the Greater China market, we will also develop new products for regional markets.¡¨

 

For the year under review, the Group expanded market channels to over 1,500 retail outlets for packaged system sales and promotion of Q9 CIS in Hong Kong. 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. It also successfully sold its software packages to approximately 30 government departments and has been registered as an approved supplier for 66 government departments.

 

Whereas in the PRC, the Group signed distribution agreements with various software distribution companies and appointed a distribution company of the Guangzhou Daily group to establish hundreds of outlets in Shenzhen and the entire Guangzhou province. A series of marketing and sales campaigns were also held to enhance its penetration of end-user in various levels, including government and education sectors in the PRC.

 

Mr Leung continued, ¡§As we have only commenced marketing and sales of Q9 CIS in the PRC since August 2001, the progress has indeed been satisfactory. So far the response from our customers and potential clients are highly positive and this will continue to be our major target market.¡¨

 

Looking forward, the Group will continue to target its marketing and promotional activities to reach the mass of customers in the PRC market. The Group is now actively exploring into the Shanghai, Beijing as well as Chongqing regime.

 

It will also continue its marketing campaign in the Greater China market through participating in different massive education and training session in Hong Kong, Taiwan and the PRC.

 

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 launched in February and May 2002 respectively to enhance both the input speed and the ease of use of Q9 CIS. Moreover, the Group is currently 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 said, ¡§The Greater China region is the most important market for the Group due to its lack of proper input system applicable to 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.¡¨ He concluded.

 

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