a. Electronic Payments (Prepaid / Pay now) 鈥?Bimbit points top-up and allow retailers to sell music download prepaid cards
b. Mobile Coupons and e-Tickets
c. Music Subscription 鈥?Bimbit members can sign up for month/half yearly/annual packages
d. DCgate Multi-channels Virtual storefront 鈥?Allows retailers to sell music, merchandise and more
e. Music Kiosk 鈥?Allows Mobile phone retailers to sell songs, ringtones, wallpaper and more
f. Digital Advertising

1.17 With DCgate multi-channels eCommerce-ASP Virtual Storefront, Bimbit addresses the market via B2C, B2B and B2B2C channels.

1.18 Bimbit鈥檚 addressable markets are Internet users, Mobile phone users, digital audio MP3 player users, media and marketing agencies, online communities and eCommerce portal operators, merchants, Mobile phone retailers and financial institutions.

1.19 Bimbit鈥檚 marketing strategies would focus on these 3 areas:

• Developing innovative and profitable go-to-market programs
• Signing up more merchants and banks in providing digital content as their part of their customer acquisition and rewards program
• Recruiting more Mobile phone retailers to sell digital content to their customers via Bimbit Music kiosk.

1.20 Bimbit鈥檚 market focuses are mainly in the Asia. We foresee the digital content market in Asia will grow rapidly in the next few years as subscribers and MP3 player users demand for digital entertainment and lifestyle content. Consumers can own a number of digital devices and has access to a variety of channels to download digital content.

1.21 In-Stat Research estimates that 140 million flash and hard-drive units were shipped worldwide in 2005, and expects that number to rise to 286 million by the end of 2010. MP3 player market continued to enjoy phenomenal growth across Asia/Pacific (excluding Japan) (APEJ) in 2005, driven by demand for portable flash players. According to International Data Corp (IDC), the MP3 player market in the APEJ region is expected to increase from 14 million units in 2005 to approximately 36 million units in 2010 at a compound annual growth rate (CAGR) of 20.8% during the forecast period.

1.22 Juniper Research forecasts the Mobile Music global market to exceed $14bn by 2011, with Asia accounting for more than $5.6bn (40%) annually. Asia will become the world's largest market for mobile music by 2011 with some 40 per cent of global sales. According to IFPI (International Federation of the Phonographic Industry) 2006 Report, Mobile phone music services accounted for 40 per cent of record companies' digital revenues, most of it coming from ringtones and ring-back-tones that comprise snippets of original artist recordings rather than track downloads.

1.23 Therefore, Bimbit would need to expand our business coverage into more countries in Asia. Bimbit is targeting expend to neighboring in the next 3 years.

1.24 Bimbit鈥檚 marketing strategies are (a) to increase download and sales of digital content by forming a global Digital Content Eco-systems (b) to sign-up and provide various types (music, ebooks, mobile apps, etc) of legal digital content to members (c) to establish Smart Partnership with portal owners, wireless service providers, media and marketing agencies, mobile phone retailers, merchants and financial institutions to market and sell digital content (d) to develop mobile/online advertising product targeting our user communities.

1.25 The DCCP allows us to do consumers data mining for advertising through mobile SMS, WAP and WEB. Bimbit can provide a variety of advertising and direct marketing channels targeting digital content consumers. Bimbit expect the advertising revenue will be a substantial revenue stream in the near future.

1.26 Bimbit offers the 鈥淔reedom of Choice鈥?for music lovers. We offer DRM鈥檈d songs from the international labels as well as DRM-less MP3 songs from Independent labels. Combining all the songs from our digital retailers, we have a collection over 1,000,000 tracks. All these tracks are 100% legal and original. Music Lovers could download our music at will, without requiring a download client. Supports Apple iTunes, Sony SonicStage, Nokia phones, Samsung MP3, Creative Zen, Windows media and all portable MP3 players. and operational management.

1.27 In Malaysia, we have signed contracts with a leading Mobile Operators Celcom, Maxis and Digi, providing Premiun SMS and WAP-push services using our 39188 shortcode.

1.28 Bimbit has signed up Apple Retailers, SONYSTYLE stores, Mail Box Etc and MPH Bookstores in Malaysia, as our Bimbit Moosic Prepaid Card B2B resellers and to build up music communities surrounding the digital audio players (e.g. Sony MP3, Samsung MP3 & Apple iPod) users, to download Bimbit Moosic (鈥淢obile Music鈥? from our Bimbit Portals.

1.29 Bimbit has signed up with MOL AccessPortal, Malaysia Kini, Voize.my, KRU Group, Life Records, Sultan Muzaffar blog and others as eCommerce merchants, to provide these merchants a B2B2C eCommerce-ASP Virtual Storefront for their members to purchase digital music, directly from their portals or blogs. Please see Appendix for screen-shots of the MOL B2B2C eCommerce-ASP Virtual Storefront. Bimbit has signed a joint venture agreement to provide B2B2C eCommerce-ASP Virtual Storefront for Quantum Corporation Sdn Bhd that rewards its customers when they buy legal content. Please see Appendix for screen-shots.

1.30 Bimbit promotes Asian Music Globalization. We provide a platform for promoting local (Malaysian. Singapore, etc) musical talents to the global market. Bimbit encourages local talents to upload their music-works to Bimbit Moosic Portal and we will promote these music-works to various global markets via ECD that is currently supplying Asian songs to iTunes of Apple, eMusic, Orchard Music Publishing, etc.

1.31 Bimbit Moosic Portal also promotes Malaysian musical talent by publishing their music-work into a global music community that consists of composers, artists, producers and musician in HK, China, Taiwan, Singapore and the US. Local 鈥渢alents鈥?would need to register himself or herself with Bimbit, before "uploading" their content to Bimbit Portal.

1.32 Bimbit鈥檚 target markets are the Internet users, mobile subscribers (2.5G, 2.75G, 3G, 3.5G and WiMax), digital audio players (MP3 players such as Apple iPod, Sony Walkman, Creative MP3, etc), wireless service providers, media and marketing agencies, mobile phone retailers, merchants and financial institutions.

1.33 We intend to market our products and services through B2C, B2B, B2B2C and distribution channels. These include wireless service providers, global content aggregators, media and marketing agencies, SMEs/merchants, corporate and social community portals, e-marketplace, radio and TV and online media.

1.34 In order to penetrate our target market efficiently and swiftly, we intend to initially use appointed commission resellers strategically located throughout Malaysia and neighboring countries. We started a national advertising campaign targeting end users in various national publications.

1.35 As for mobile phone subscribers, Bimbit has signed a multiple-year contract with Celcom (M) Berhad to provide BIMBIT digital lifestyle, entertainment and eCommerce content/services to their 2.5G and 3G/3.5G subscribers. Celcom has increased its 3G marketing efforts, promoting new products and services to gain new mobile subscribers. Celcom 3G subscribers for postpaid at over 20,000 with the Xpax 3G launched in December 2005 the 3G subscribers base will increase to over 150,000 by end 2006.

1.36 Bimbit owns a SMS gateway that is integrated to cellcos (including Maxis, Digi and Celcom) and international SMS gateway via Ericsson IPX. Bimbit possesses thousands of mobile members that we regularly promote and sell our products to.

Digital Audio Players (DAPs)

1.37 In-Stat Research estimates that 140 million flash and hard-drive units were shipped worldwide in 2005, and expects that number to rise to 286 million by the end of 2010. MP3 player market continued to enjoy phenomenal growth across Asia/Pacific (excluding Japan) (APEJ) in 2005, driven by demand for portable flash players. According to International Data Corp (IDC), the MP3 player market in the APEJ region is expected to increase from 14 million units in 2005 to approximately 36 million units in 2010 at a compound annual growth rate (CAGR) of 20.8% during the forecast period.

1.38 In view of the booming of the Music download business in Asia, there is a high demand for localized legitimate download online music sites (such as iTunes) for counties in Asia, Middle East and Greater China. Bimbit partners with Nokia, Motorola, Samsung and Apple resellers to build music communities especially for digital audio players鈥?users to download Bimbit digital content.

Media and Marketing Agencies

1.39 As media and marketing agencies become more familiar with new mobile technologies, they want flexibility and integration of mobile within their overall marketing strategy for their clients. Bimbit Marketing Ad-push allows media and marketing agencies to take advantage of their mobile campaigns. Bimbit Marketing Ad-push is an interactive multimedia advertising service provided via mobile phones. It can push mobile coupons/vouchers and other advertising info or promotional events. It offers low cost, improved response, target marketing and effective consumers鈥?response.

In Malaysia, we have signed a multiple-year contract with a leading Mobile Operator, Celcom (M) Berhad to provide BIMBIT mobile lifestyle, entertainment and m-commerce content/services to their 2.5G and 3G subscribers. Bimbit also has premium SMS contracts with Celcom, Maxis and Digi to provide WAP push services using our 39188 shortcode.

International Market

1.40 Juniper Research forecasts the Mobile Music global market to exceed $14bn by 2011, with Asia accounting for more than $5.6bn (40%) annually. Asia will become the world's largest market for mobile music by 2011 with some 40 per cent of global sales. According to IFPI (International Federation of the Phonographic Industry) 2006 Report, mobile phone music services accounted for 40 per cent of record companies' digital revenues, most of it coming from ringtones that comprise snippets of original artist recordings rather than track downloads. According to another report from In-Stat, companies selling mobile music in Asia will see regional revenue leap from $3.3bn in 2005 to $9.3bn by 2010. The firm includes ring-tones, full music tracks and ring-back tones in its definition of mobile music.

1.41 Therefore, Bimbit would need to expand our business coverage into more countries in Asia. Bimbit is targeting for neighbor-hood countries such as Singapore, Thailand, Australia, Hong Kong/ China, the Philippines and Indonesia for the next 3 years. The next target shall be other countries and followed by Dubai and UK in near future.