Q-Net Technologies, Inc.

COMPANY DATA | INTRODUCTION | BUSINESS SCOPE | MANAGEMENT | NEWS UPDATE 
CHINESE　

COMPANY DATA

INTRODUCTION

Q-Net Technologies, Inc. is a California based publicly traded holding company. The Company was formed as a vehicle to introduce consumer technology and value added Internet services into the Chinese market. The Company has three operating divisions:

n Liaoning Qinnet E-Book Technologies Co., Ltd. is a joint venture in conjunction with Liaoning Publishing Group (LPG), one of the five largest publishers in China. This division is responsible for the introduction and marketing of the Q-Reader and its associated content site (www.cnbook.com.cn)
n TCS Division, with distribution through China NetCom, offers Thin Client Server Technology and the introduction of other value added Internet and technology services to the Chinese market.
n Beijing Qinnet Technologies, Inc. is a software development division, which develops and provides value added technology systems for the e-commerce market.

BUSINESS SCOPE

LIAONING QINNET

This division is responsible for producing the Q-Reader. Developed in cooperation with their partner, The Liaoning Publishing Group (LPG) one of the largest and most prestigious publishers in Asia, the Q-Reader is a handheld device capable of receiving storing and displaying a large number of electronic files via telephone modem from the Internet. The Q-Reader was introduced to the Chinese publishing industry at the International Publishing Show in Beijing in January 2002. The Company was encouraged by the shows interest in the Q-Reader with over 24,000 units being pre-ordered by 37 distributors having national representation during the 3 day period of the show. The Q-Reader will be formally presented at the International Technology Show in Beijing in May and a wireless model is anticipated later this year. The device also features complete Internet, e-mail, and personal digital assistant capabilities in the smallest device yet developed providing standard Internet sized text and illustrations. The Q-Reader can download, display and store the equivalent of 20-25 books, based upon the size of the published material, and the storage capacity is expandable. Currently the Q-Reader comes with 16 mb's of memory. Directed to the educational, professional and research markets, this product allows a student to download an entire semester of textbooks into this small device or a researcher the ability to access the most up to date information in his or her field at a fraction of the cost of a laptop or a PC. The device itself is approximately the size of your average paper back novel.

TCS DIVISION

Q-Net Thin Client Server technology provides small and medium sized businesses and individual customers with access to computer capabilities previously available only to large corporations with sophisticated and expensive computer resources. For a monthly charge, the customer receives Internet access, connected via broadband to a central server. This server, either in LAN (local area network) or WAN (wide area network) configuration, is upgradeable and maintained by the Company. The service provided by the Company eliminates the cost of expensive periodic expenditures required to upgrade obsolete equipment or the need to maintain internal information technology services. The cost of accessing these resources will be substantially less than regular PCs, while providing the capabilities of the most sophisticated corporate installations. Q-Net has held discussions with several major telecommunications providers in China and each has expressed a high level of interest to cooperate with Q-Net in the introduction of the TCS services to their respective customer base. Together, through the marketing assistance of these telecom companies, Q-Net anticipates rapid market introduction.

BEIJING QINNET TECHNOLOGIES, INC. Value added Internet Services.
Q-Net's third area of operation provides value added Internet services encompassing Voice over Internet Protocol telephony (VoIP) and Internet Solutions Software for small and medium sized businesses to cost-effectively and efficiently build their e-commerce websites.

MANAGEMENT

Dr. Weiguo Lang, Chairman/Director Q-Net
Dr. Lang received his MSc. and Ph.D. degrees in Engineering in Canada and a BSc. Degree in Engineering in China. Most of his work was related to computer programming and mathematical modeling and simulation. Dr. Lang speaks fluent Mandarin and English and divides his time between China and North America. He has held several senior management positions including: President of Argo International, a publicly listed Canadian company, division manager for the province of Heilongiiang, China and also as a senior consultant of international business for North American international trade & development corporations.

Mr. Fredic R. Mann II, President/CEO/Director Q-Net
Mr. Mann brings a wealth of experience to the Company in the form of corporate finance in both domestic and international markets. Mr. Mann was a Managing Director and led the Global Corporate Finance practice for the Consumer Business and Retail Industries at Deloitte & Touche from 1996 through 2000. Prior to this he was President of a Philadelphia-based investment-banking firm specializing in mergers, acquisitions, divestitures and corporate finance advisory services internationally. He is the author of several published articles on securities, retail and foreign capital investment. Mr. Mann is a member of the Pennsylvania Securities Association and the American Management Association. Mr. Mann received his BS in Economics from the Wharton School of The University of Pennsylvania and a JD from Syracuse University College of Law.

Mr. Paul M. Schwartz, Executive Vice President/Chief Operating Officer/Director Q-Net
Mr. Schwartz has held the position of Vice President of Investments at Josephthal Lyon and Ross, Spencer Trask and Thomas James. He also held the position of Senior Vice President of New Business Development at Turbodyne Technologies Inc. (1998-1999). Here, Mr. Schwartz was responsible for creating strategic alliances with leading companies in the automotive components industry. From 1985-1998 Mr. Schwartz was Senior Vice President of Manufacturing with Supreme Metal Fabricators, a food service equipment manufacturing company. Mr. Schwartz received his BS in Finance from Syracuse University in 1985.

Dr. James Jiang, President and Director, Beijing Qinnet
Dr. Jiang is a businessman based in China. For the past six years he has been an owner and operator of the Mercedes automobile dealerships in northern China. He graduated from the Beijing Medical University and practiced radiology for six years in Vancouver, BC before pursuing his business career. Fluent in Mandarin and English. Dr. Jiang resides in Beijing.

Mr. Frank Pan, VP Beijing Qinnet/CEO of Qinnet E-Book
Mr. Pan graduated from the Dalian Technology University, China with BSc. from the Chinese Peoples University. He was a researcher at the Liaoning Provincial Government between 1987-1991 during which time he published 8 papers on economic policies and enterprise systems. In 1991-1993 he was invited as a visiting scholar at St. Gallen University in Switzerland in market forecasting. From 1993-2000 he founded and directed the Brainn Management Consulting Center, the first management-consulting firm in Liaoning and Shenyang Informerce, the first private Internet Company in Shenyang. Since October 2000 he has been serving as CEO of Qinnet E-Book.

Mr. Yu Xiaoqun, Vice President of LPG/President of Qinnet E-Book
Mr. Yu received his BSc. in 1982 and MA in Philosophy from the Jilin University, China. In 1986, he was appointed the Vice Chief Editor of Liaoning Education Press and in 1993 was appointed General Manager and Chief Editor. Under Mr. Yu's leadership Liaoning Eduction Press was awarded the title of "National Excellent Publishing House" by China's National News & Publishers Bureau in 1998. Mr. Yu was honored as one of the "Top Ten New People in the Publishing Industry" in 1997. Mr. Yu has published 8 books and more than 40 articles. He published "The Guinness Book of World Records" in Chinese and the "International Encyclopedia of Business & Management". He has received numerous awards for his writings including, the "National Book Prize" by the China National News & Publishing Bureau, the "Chinese Excellent Books Prize" and was also awarded the first prize of "Excellent Books of Liaoning Province" by the Chinese Publishing Association in 1998.

NEWS UPDATE

On September 17, 2002, Q-Net Technologies, Inc. announced that it has completed production of the first 100 commercial Q-Reader units and that due to demand and interest, the scheduled test sales program of 50 units was increased to 60, and that all were sold immediately. The remaining 40 units are reserved for post-sales service and demonstration purposes. The Company is scheduled to begin its next production run of 1,000 units in October.

On September 12, 2002, Q-Net Technologies, Inc. announced the completion of its proprietary Thin Client Server ("TCS") Terminal board design and fabrication. The board is currently undergoing operating system software installation and testing by their software development partner, Emsoft, Inc. It is expected that sales will begin in the 4th quarter of 2002.

On March 25, 2002, Q-Net Technologies, Inc. announced the creation of its Technical Advisory Board. The board was created as the result of the significant interest expressed after the introduction of the Company's new Q-Reader handheld reading device on January 9th 2002, at the International Book and Publishing Show in Beijing, China.

This board will be responsible for advising and guiding the Company in the development of its current and future line of products and services. The Company also announced the first appointment to the Advisory Board, Dr. Xing Li, the head of the Department of Electrical Engineering at Tsinghua University in Beijing, China.

On February 11, 2002, Q-Net Technologies, Inc. announced that the introduction of its Q-Reader, an electronic reading device which incorporates Internet connectivity, Personal Digital Assistant (PDA) and email capabilities, was favorably received at the International Book and Publishing Show that opened in Beijing, China on January 10th 2002.

Over 24,000 units were ordered by distributors throughout China during the three day show where the Company has received strong publishing industry, education sector and government interest.

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