Page:1 CHIEF Telecom Inc

Page:2 Industry Prospects

Page:3 Telecom Infrastructure Communication Information Broadband Application Industry Structure of Telecom The development of Telecom Industry is tied to the completeness of the Telecom infrastructure. The superior Telecommunication environment is built on the Telecom infrastructure, providing relevant communications products and derived broadband services.

Page:4 The Trend of Multi-Service Networks Current Telecom networks provide one-to-many connections and cause the limitation. Star topology can eliminate the insufficiency of bandwidth.

Page:5 Multi-choice of Bandwidth The only operator Single choice of bandwidth Telecom deregulation Multi-service networks Several bandwidth providers Multi-choice of bandwidth User 1 User 2 User 3 User4 User 5 User 1 User 2 User 3 User 4 User 5 Carrier 1 Carrier 2 Carrier 3 Carrier 4 ‧‧‧ ChungHwa Traffic Aggregation Center

Page:6 Declining price led to the specialized bandwidth providers Aggregation point of regional hub Why need Tele-Center Demand of web hosting & co-location services Demand of services from Telecom users Demand of connectivity between Carriers and ISPs

Page:7 Advantages of Neutral Tele-Center Carrier-neutral Shared facilities can save infrastructure investment Maximum choice from different service providers Island characteristic country will require one Tele-center    

Page:8 CHIEF is a Neutral Tele-Center CHIEF provides Telecom infrastructure facilities and telco grade services : It gathers Local Operator, Global Carrier, SSP, ASP, IDC, ISR, ISP & ICP, providing bandwidth exchange services and related broadband products. Clients IDC Local Operator ISP Global Carrier CHIEF’s Carrier Hotel Clients CHIEF’s Application Platform ICP Clients SSP ISR Clients ASP

Page:9  CHIEF is a neutral aggregator in Telecom & information industry  CHIEF is a Tele-Center  CHIEF is an Exchange Center CHIEF‘s Cooperation Model 企業價值 Type Ⅰ Operators Application Service Providers Telecom Hardware Providers CHIEFMarketplace Type Ⅱ Operators Software Tool Providers System Software Providers Computer Hardware Providers

Page:10 Global Traffic Chart Resources ： ITU, 2000

Page:11 Taiwan Traffic Chart Resources ： ING BARINGS, Aug Market incoming minutes(M mins) CHT-incoming minutes(M mins) Monthly minutes(M mins)

Page:12 Telecom Service revenues Resources ： ITU, 2000

Page:13 Operation

Page:14 CHIEF can create innovative Telecom Services The Opportunity of CHIEF Differences between Telecom Products & Services Time Gap to Launch Services Competition between Telecom Operators

Page:15 CHIEF‘s Resources & Niche CHIEF Huge Telecom Market Size Up-trend Telecom Market Industry Growth Following Telecom Deregulation Right Time for Investment Deep Understanding of Telecom Industry First-Mover Advantage Experience in Both Telecom & IT Industry Tremendous Financial Performance Established Channels

Page:16 CHIEF‘s Black Hole Effects CHIEFTele-Center Telecom Resources Communication Resources Internet Resources Local Operator Global Carrier SSP ASP IDC ISR ISP ICP Customers Partners

Page:17 Accomplishments Taiwan Total Chief Total Forecasted available bandwidth will be 300Gbps at the end of 2001 Forecasted available bandwidth will be 200Gbps at the end of 2001 Average 180M mins per month (In & Outbound) 5M mins per month (now) 47M mins per month (Year end) Bandwidth Voice

Page:18 CHIEF‘s Strength Island characteristic CHIEF is the Only & Unique Gateway Bandwidth Demand Traffic Momentum Demand in Neutral Tele-Center

Page:19 CHIEF‘s management Philosophy Identify in the early stage of the industrial horizontal diversification in order to maintain neutrality Endeavor to establish common resources to be shared with partners Gather all members in the value chain, regardless of their positions, and cooperate with each others Cooperate with other members to sustain a health, thriving industrial ecology Diversified Specialization Resource- sharing Industrial Cooperation Win –win Solution

Page:20 CHIEF’s Tele-Center Infrastructure Backbone Networks Access Networks Carrier Hotel Data Center ServicePlatform Billing System Network Management Payment Gateway Clearing House E-Commerce EoS Content Delivery Sys. Marketing Tele-Marketing Promotion Program Channel System Integration TPIX Data Exchange CenterTPVX Voice Exchange CenterTPCX Content Exchange Center CRM SCM

Page:21 CHIEF‘s Business Categories  CHIEF‘s Business Categories C&C New Telecom Century ： Computer & Communication Cooperation & Conflict  Carrier Hotel Exchange Center Channel Application

Page:22 CHIEF Multi-Vender, Multi-Service CHIEF Link / CHIEF Marketing Multi-Media Access / Backbone Network IDC 、 CHP SSP 、 STP ASP Type Ⅰ Operators Type Ⅱ Operators Carrier Hotel Management Service Exchange Center

Page:23 CHIEF’s Team President of InveStar Capital & Digitimes, Co-founder of Acer Group, Directors of listing companies TCU CTU Chairman Kenneth Tai Vice Chairman C. S. Tsen NCKU President Johnson Lu Sales Mgr., Acer Inc., Sales Mgr., Acer Technology KW College Electronic Engineering Managing Directors, Hinet/DCI, CTO, Chunghwa Telecom CTO, Taiwan Fixed Network Co. COO Larry Chai VP, Nortel Networks GM, Global One Taiwan Depaul U., M.S. in Telecom Northwestern U., Computer Science

Page:24 CHIEF’s Team (Cont.) President COO Channel Service / Telecom Business Unit VP Tony Chang Telecom Technology Business Unit VP Johnny Liu Information Business Unit VP Charles Chang Taichung Branch Office VP Joy Chen International Business Unit VP C.H. Tai Kaohsiung Branch Office VP Peter Lee Operation Management Business Unit VP Joyce Tsai

Page:25 CHIEF‘s Milestone Y1996~Y1999Y2000Y2001Y1991~Y1995  Establishment  Help DGT to establish front- and back-end information systems and online telecom services  Received data resell agency license from Chunghwa Telecom  Became the largest broadband service agent in Taiwan  Over 2000 distribution partners  Key customers : MCI WorldCom, Global One, etc.  Transform to Tele-Center  First Carrier Hotel in service  Key customers : eASP, AboveNet, etc.  Second Carrier Hotel launched  Hsinchu, Taichung & Kaohsiung sites completed  Establish presence in China  Key customers : UUNet, SingTel, etc.

Page:26  TPIX to be the densest node in East Asia  TPVX to be THE voice switching center in Taiwan & East Asia  To be the Telecom Hub in Taiwan, Great China & East Asia  200Gbps bandwidth at the end of 2001  Taiwan’s only bandwidth hub Strategy & Goal L-Term S-Term

Page:27 CategoriesContentRevenue Carrier Hotel Establish or Customer-Design of data centers and relevant Telecom equipment. Provide hosting & co-location services to Type I & II Service providers Planning / installation income and lease income Exchange Center Voice, data & content exchange and aggregation centers, including TPIX, TPVX and TPCX Transaction fees service charges CHIEF‘s Revenue Model ChannelMarketing and sales arm of multi-brand bandwidth related services Commissions and service charges ApplicationProvide e-commerce transaction services, corporate applications, and entertainment / lifestyle services User fees