* Brief

- On the basis of E-commerce with 0% sales risks, the Company endeavors to secure stabilized profitability through Hardware and pripherals growing up since 2003, high profitability through B2B e-payment, and high growth through development of Portable Multimedia Player, so called next-generation mobile product.
* e-payment
  1) Current status

a. Characteristics
- Electronic settlement, security and authentication system has led the growth and development of e-commerce, and created a new field of e-payment service (PG : Payment Gateway).

b. Growth ability
- According to ¡®E-commerce and e-business market, issues and prospects 2004 report¡¯ issued by E-commerce Research Association, the e-commerce market of Korea in 2004 is prospected to grow up 26.9% tantamount to 27.45 trillion won, and B2B and B2G e-commerce turns into collaborative e-commerce tantamount to 23.5 trillion won, which represents 26.3% growth comparing to that of 2003.

c. Emergence of E-payment (E-commerce guarantee)
- While achieving eye-opening progress in development of business model and solution, it was hard to market owing to lack of B2B payment method.
- Korea Credit Guarantee Fund introduced e-commerce guarantee, in which B2B e-commerce is 100% guaranteed, as a main enterprise for ¡°Total Assistant Plan for Building B2B Network¡± of MOCIE.
* E-commerce guarantee
  1) Institutes participating in e-commerce guarantee

a. Guarantor Institute
- Institute : Korea Credit Guarantee Fund
- Establishment : Non profit seeking special corporation established pursuant to Korea Credit Guarantee Fund Act in 1976
- Classification : Special corporation
- Year of Establishment : June 1, 1976
- Location : 254-5, Gongdock-dong, Mapo-gu, Seoul
- Purpose : To facilitate corporate financing and to establish sound credit order by guaranteeing obligations of small and medium business
- Activities : credit guarantee, credit investigation, credit data management and management guide for small and medium business

b. Lending Bank (4 banks including Shinhan bank)
- Bank : Shinhan bank
- Kind of Business : Finance
- Date of Establishment : Sep. 15, 1981
- Date of Listing: Nov. 28, 1989
- Location : 120, 2 ga, Taepyong-ro, Jung-gu, Seoul
- Total Asset : 58.89 trillion won (2002)

c. Authentication Institute
- Institute : KOSCOM
- Date of Establishment : 1977
- Purpose : To computerize securities service under supervision of MOFE and KSE(MOFE=Ministry of Finance & Economy, KSE= Korea Stock Exchange)

d. Market Place : BIGBEAM Co., Ltd.
- Main Activities: Provision of intermediary Market Place www.dob2b.co.kr. Adoption of a gamut of business model between purchaser and seller by XML-based OPEN ARCHITECTURE. Provision of optimul B2B Trading Solution which furnishes sales, purchase, negotiation, auction, joint purchase, agreement management, e-tax bill etc. which may be applied to all industrial field.
- MOU with Korea Credit Guarantee Fund : Jan. 2003
- MOU with ShinHan bank : Jan. 2003
- MOU with KOSCOM : Jan. 2003
- MOU with Hana bank : Jan. 2004
* Overview of e-commerce guarantee
  a. What is e-commerce guarantee?
- A system of guaranteeing monetary obligation of purchasing company to financial institutes if the company borrows purchasing price from the institutes

b. E-commerce guarantee
- Subject : Small, medium and large enterprises
- Limit of guarantee: Up to 10 billion won, half of current sales
- Charge of Guarantee : Differential rate between 0.5% and 2.0% in accordance with credit rate and period of business relationship
* Current Status of E-commerce Guarantee
  a. Per profit of e-commerce guarantor
Institute
Source of Profit
Profit
Remart
Korea Credit Guarantee Fund
Guarantee charges
0.5%~1% of guaranteed amount per annum
Born by guaranteed
Financial institute
Note discounts
5.2%~6% per annum according to credit rate
Born by seller
Electronic transfer fees
Near to naught.
Born by seller
KOSCOM
Certificate issuance fees
Near to naught
Born by seller/purchaser
BIGBEAM Co.,Ltd.
Transaction fees
1.5%~2% of total amount per annum
Born by seller