KINGDEE 2000 (Name of product)

Kingdee international software group co, Ltd. (vendor)

The accounting software developed by the Group is sold under the brand name of 2000 (KINGDEE 2000) and the ERP software of the Group is sold under the brand name of K/3. The accounting software KINGDEE 2000 consists of 10 packages, including Standard Package, General Ledger Package, Industrial Package, Administration Package, Trade Union Administration Package, Trade Union Budget Package, Hospital Financial Management Package, Agricultural Operations anagement Package, Cash Flow Statement Package and Consolidation Package. Each package of KINGDEE 2000 is a suite of standard accounting application modules together with industry-specific elements with no customisation and is designed to apply in computerised accounting systems for corporate enterprises of different industries, including manufacturing companies, wholesalers and retailers, government agencies and non-profit making organisations. The accounting software KINGDEE 2000 has been certified to be in compliance with the accounting standards in the PRC. The ERP software K/3 is designed to implement and support management solutions for small enterprises to national conglomerates by integrating different and independent operational and management application functions of an enterprise, such as production planning, material purchasing, inventory control, product distribution, cashflow and capital planning and human resources management. The ERP software K/3 composes of a suite of 22 application modules and 10 application modules with Web-based capabilities. The ERP software K/3 can be customised to meet specific needs of different types of enterprises so as to optimise their decision making process.

The Group has an outstanding achievement as a leading enterprise application software developer and has received a number of awards and national recognition by the relevant PRC authorities for the excellent quality of its products. The Group was accredited by Microsoft as the "Best Independent Software Developer" in the Greater China Area in 1998 and awarded the "Best Computer Software Developer of 1999" by Shenzhen Software Industry Association. In July 2000, the Group was accredited as the "Excellent Software Industry Cooperation Partner" and awarded the "Outstanding Independent Software Developer Providing Software Solution" by Microsoft. The outstanding achievements of the Group are partly attributable to the continuous effort of the Group to provide quality support services to its customers. Further information in relation to the awards and recognition received by the Group are set out in the section headed "Business - Awards and honours" in this prospectus.

The Group will continue to upgrade its existing software by developing new application modules and provide e-business solutions software over the Internet. The Directors further believe that the Group can utilise the Internet to expand its sales network and, by capitalising on its brand name in the PRC, sustain and develop growth potential and future prospects of the Group. The Group intends to continue to harness its proprietary enterprise software to develop and compliment the ASP platform products and other e-business initiatives.