1. CMM – March 20, 2006 Finance Presentation Thomas Wei

2. Agenda  Current AMEX Issue  Change in Government Requirement  Alternative Solution  China Merchant Bank Credit Card  ICBC Credit Card

3. Current AMEX Issues  ORACLE China has encountered payment issues recently, due to new regulations promulgated by State Administration of Foreign Exchange (SAFE) on Jan 16, 2006.  New Government Regulations:  We were informed by Citibank on March 2, 2006, that w.e.f Jan 17, 2006, settlement of the AMEX card domestic T&E expenses in foreign currency is no longer allowed.  For reimbursement of overseas AMEX expenses incurred outside China, it is required to submit more supporting documents

4. Current AMEX Issues  Documents required for payment to AMEX pertaining to T&E expenses :  with amount below US$50K:-  Foreign Exchange remittance application  Employment records  Notification/invoice/related payment vouchers of overseas payment  Evidence for T&E expenses incurred overseas  with amount above US$50K, approval should be sought directly from SAFE.

5. Current AMEX Issues  Unable to settle AMEX card payment in USD.  Now accumulated up to > USD350K as of today  Continue to have exposure if China employees keep on using AMEX card for T&E payment in China  Citibank can only convince SAFE to extend the grace period up to end of January.  Amex failed to offer us acceptable alternative solutions to address this issue.

6. Action Plan in Progress  Solicit for Local Credit Card Provider which can offer RMB payment.  China Merchant Bank  ICBC (Allied with AMEX)  Koby Brice currently in Beijing to help line up discussion with CWT and credit card providers this week  Koby is to draft and send out email to explain to the employees and our next action this week.

7. Questions?