We are pleased to announce the inauguration and the commencement of operations of our Beijing Office which is to function as the sales base in Beijing, China. Particulars of this Office are outlined below.

In China, we established an office in Shanghai, SMK Electronics Trading (Shanghai) Co., Ltd. last year. The Beijing Office is a liaison office in Beijing of our Shanghai Company and will have 3 people working (as of early 2007).

The inauguration of this Office will enable us active marketing activities in Beijing, in addition to Shanghai, for sales expansion.