The online game business has been growing exponentially in China over the past few years, following the successful experience in Korea. We are committed to further enhance our market position and explore opportunities in this area. Our latest online game, Yulgang, was one of the fastest growing massive multiplayer online role-playing games (MMORPGs) in China in 2005. Based on a very popular comic book published in Korea, Yulgang was commercially launched in July 2005 and pioneered the “free-to-play, pay-for- virtual merchandise” business model for MMORPGs in China. It was noted by 17173.com as the second most popular MMORPGs among over 50 new online games launched in China in 2005 and also named by China e-Game Industry Association as the most innovative game in 2005. In addition to online game development, we have established a sophisticated game master system and 24-hour customer service support, which are vital to the success of any online games. We also have a well-established distribution network across China that includes Internet cafes, software distributors, bookstores and department stores.
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