About Digital China Holdings

Digital China Holdings Limited, an investment holding company, engages in the distribution of information technology (IT) products, provision of systems integration services, and development and distribution of networking products in China. It provides software and hardware solutions to its clients. The Company has regional offices in other major cities in China - Guangzhou, Chengdu, Wuhan, Jinan, Nanjing, Shanghai, Shenyang, Xian, Hangzhou, Shenzhen and Hong Kong. The Company engages in three groups of businesses: Distribution of IT Products, Systems Integration and Networking Products. Distribution of IT Products The company distributes various IT products from international manufacturers, including notebook computers, desktop computers, PC servers, data projectors to consumer IT products through a network of 6,000 down-stream resellers and chain stores in China. The Company distributes approximately 1,100 models in PCs, servers, storage products, peripherals, networking products, mid-ranger servers, mobile office equipment, mobile communications products, wireless access equipment and software. Some of the latest brands include NetScout, Netscreen, Unisys and Polycom. The Company has entered into distribution agreements with 21 manufacturers on the distribution of 33 categories of products, providing supply-chain management services including mainly sales planning and marketing, credit and debt management, warehousing and logistics. Systems Integration The Company's systems integration services segment engages in the provision of technical support services and training, IT outsourcing services and the sale of hardware and software. The Company provides systems products, which include mainframe servers, networking and storage products, and packaged software systems products; and technical solution provisioning, hardware maintenance and training. As a forerunner in China’s systems integration, Digital China has a proven track record with enterprises big and small. The Company focuses specific sectors which are telecommunications, finance, government and manufacturing companies. Its self-developed application software Sm@artBanking, Sm@rtBoss billing systmes and CTAIS series taxation management has been applied in its lighthouse customers. Networking Products The Company engages in the development and distribution of networking products segment engages in the development and sales of network interface cards, hubs, switches, routers, network security products, remote access servers and network software. The Company has developed capabilities in design, development and sales of networking products and the provision of technical services. With its own brand name, Digital China, it provides a range of products that cater for LAN, WAN, wireless access and broadband transmission. Services The Company focusing on telecommunications, finance, government and manufacturing sectors, the business provides consulting, application software development, systems integration and related training with a solid vertical industry-specific knowledge and capacity to implementation. Agreements Avaya, Inc. has entered into an agreement with Digital China Holdings, Ltd. to develop and market IP telephony and contact center solutions targeted at mid-sized market in China. Digital China would be the distributor for Avaya's range of S8400 Media Servers and Multi Vantage Express products. Significant Events Digital China Holdings, Ltd. has signed a non-legally binding framework agreement with a subsidiary of E to establish a joint venture focused on the IT service sector. E (Benelux) BV. SARL., a wholly owned subsidiary of E, would hold 50% of all shares in the JV company, and Digital China would hold the other 50%. The joint venture would focus on the information technology service sector in China. Significant Events Digital China Holdings, Ltd., in July 2008, established a subsidiary, Digital China Information Technology and Services Co. Ltd., which would focus on attracting investment.