Executive Summary

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Bluewave's services allow residential subscribers to connect their personal computers via Ethernet to our high-speed Ethernet network and enable them to access the Internet at speeds substantially faster than typical dial-up services.

The primary objective of Beijing Bluewave Broadband networks Co.,Ltd.(the "Company")is to provide last mile access via Ethernet (MDU/RBB) ,the Company principally engaged in the development and operation of RBB in Beijing .

The initial focus is the capital of China,Beijing .It is the most economically developed market in China with a population of 13 million and over 2 million PC subscribers.

Major shareholders
The Company has three existing investors and currently 94.75% owned by Full-Link Plaza Mansion Co.Ltd.. Full-Link brings to the Company strong funds support as well as local knowledge and relationships.

Business model
The Company's strategy is to focus on two areas La)with selected property developers, property management companies and property owners ,and (b) with the selected funds support as well as local knowledge and relationships.

A key part of the Company's business model is to form alliances with selected partners to cover all the other aspects of the business. These alliances include telecom operators ;VAS providers ;banks and technology providers etc. The Company believes that the business model represents a win-win situation for all the parties involved.

The business model is specifically tailored for China, which has the following characteristics: China opens telecom market; a huge existing PC owner; the market of Internet users is moving from business societies to families ;the demands of QOS on telecom network is quickly increasing ;Internet comtents are attractive to subscribers; more opportunities for broadband industry.

By focus on the key areas while leveraging on the expertise of the business partners, the Company is able to offer the consumer a high-speed ,low-cost Internet access through IDC, and an additional charge for the all kinds of VAS Services.

First mover advantage
The Company is signing up exclusive construction and operating contracts with property developers ,property management companies and property owner. A long-term, revenue-sharing agreements are signing between the Company ,telecom operators and the selected VAS partners .
The Company believes it will enjoy a significant first mover advantage by being the limited providers , which has ICP/ISP and CPN licenses in Beijing .Such a "Occupying the limited telecom source " effort places the Company ahead of competition and represents an exceptional entry barrier for any new competitors .

Marketing and rollout
The Company began providing broadband Internet access services in 1997 and have experienced terrific growth since then, with the number of our residential subscribers growing to 1 million households as of Aug.31,2001.With over 10,000 subscribers on hand (Subscription fee 150 RMB per month ) and growing at over 25%monthly in subscription ,the Company expects that the subscriber base will continue to expand rapidly and will reach approximately 1.2million by the end of 2001.

The Company's marketing strategy is to achieve an early penetration of the Internet household market in Beijing , following a successful trail run period in a small number of other main cities in the PRC. To achieve the quick penetration ,in addition to aggressive signing up of telecom network operators ,the Company will also offer rich and attractive contents .

The Company's Web Site offers a wide variety of rich , multimedia Internet content for broadband access. With contracts over 40 value added serviced providers, the Company is choosing ten interest-specific channels such as online education ,online stock trading ,online music video and movies ,as well as many other on line offerings .

On the e-commerce front , the Company will soon begin to offer specific online shopping services in conjunction with the certain department stories ,which are closed to the particular communities .In addition ,online banking will be cooperated with China Construction Bank.

Note
CPN,In July 2001,Ministry of Information has issued a directive ,which provided only 13 cities and 2 licenses for each city in broadband operation over residential market .The license is abbreviated as CPN and it is a qualification for basic telecommunication business in residential community utilizing broadband system.

Bluewave is the first license holder of the two licenses in Beijing .

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