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Thursday, 12/18/2003 9:53:28 PM

Thursday, December 18, 2003 9:53:28 PM

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About Digitalway

Head Office :

Digitalway Co., Ltd. Korea Design Center, 344-1 Ya¡¯tap 1-dong, Bundang-gu, Seoungnam City, Gyeonggi-do, 463-828 Korea

Tel : +82-31-788-7230 / Fax : +82-31-788-7240

U.S.A. Office :

Digitalway, Inc. PS Business Parks, 6540 Lusk Blvd. Suite C116, San Diego, California 92121

Tel : 858) 554-1300 / Fax : 858) 554-1370

Digitalway began producing digital audio players in 1998 and quickly grew to be one of the largest manufacturers in the world. While building these devices for other companies to market under their own brands names, Digitalway earned a reputation for world-class quality. Now, Digitalway is developing and designing its own players. The high quality is the same. What's new is smaller, more colorful players with more memory at a lower price.

The OEM to Samsung Electronics (Yepp) and RFC (Jazpiper) made it possible to be a giant manufacturer with the quality proved. MP3 player with digital still camera (MPIO) is one of the technologies that was awarded Chang Youngsil Invention Award 2000 in Korea.

As a developer and designer, Digitalway has released MP3 players with the best technology. MP3 player, Multi Format (WMA, AAC) player, Multi language supporting player, Audio with Voice Recorder, Telephone book, digital still camera and web camera, all these product lines are only part of Digitalway¡¯s on going development.

Why Digitalway?

1. World¡¯s Strongest Cost Competitiveness
Purchasing power determines cost competitiveness.
World¡¯s biggest production ¡æ World¡¯s lowest purchasing price for parts
Good relationships with leading solution vendors
Micronas, TI, STM, Cirrus Logic, Samsung Electronics, Hitachi, Oki, Toshiba, etc.

2. World¡¯s Best Quality
Patent (No.98-40074, 98-16478) and IR52 Changyoungshil prize.
Top quality proven by buyers worldwide; Samsung Electronics (Korea), RFC
(Singapore), TEAC (Germany), BESTBUY (USA), AKAI (Japan), ADTEK (Japan) etc.,

3. Mass Production Capability
World¡¯s biggest production (over 500,000 sets) Market Proven.
Stable and concrete production capability with exclusive production contracts with
Kodenshi INT., and Myungsung Electronics. Over 100,000 production capability per
month

4. The largest and the best R & D staffs
Industry¡¯s top R & D human resources : 25 persons
Developed more than 10 models and can produce 10 products in a year
Products line-up with various functions, media audio file format-AAC, WMA Digital Still
Camera, Voice recorder, CD MP3, PDA and etc.

Company History

Establishment : July 1998
Address : Korea Design Center.344-1 Ya'tap 1-dong,Bundang-gu Seoungnam City,
Gyeonggi-do, zip code 463-828, Republic of Korea
CEO : Woo Jung Ku
Capital Stock : 4.6 Million Dollar (6 Billion KRW)
URL : www.digitalway.co.kr , www.mpio.co.kr , www.mpio.com

History
1998 Jul. Establishment of Digitalway Co., Ltd.
1998 Sep. Field application for technology and design patent
1998 Sep. (Title: Multi-media device, No. 98-40075, 98-16478)
1998 Dec. Established OEM contracts with Samsung Electronics Co.

1999 Jan. Established OEM contracts with Daewoo Co.
1999 Mar. Designated as a Venture Company
1999 Mar. (from Small & Medium Business Administration in Korea)
1999 Apr. Launched the first mass production product (MPIO-SV/Jazpiper)
1999 Apr. Participated CeBIT (Hanover, Germany)
1999 May. Launched OEM products of Samsung Electronics (Yepp-E series)
1999 Jun. Established an enterprise annex research center
1999 Aug. Launched MP3 Player supply contract with Internet Music (E-sounds)
1999 Aug. Awarded the Best Product Design (KIDP)
1999 Oct. Launched OEM products of Samsung Corporation (Fubu)
1999 Nov. Launched Digital Still Camera Module for MP3 Player

2000 Feb. Attracted 450 Million Won from KTIC
2000 Apr. Awarded with Jang young Shil IR52 Prize
2000 Aug. Launched the 2nd OEM products for Samsung (Yepp-NE series)
2000 Oct. Launched ERP SYSTEM (Samsung Data System)
2000 Dec. Designated as a Promising IT company (Ministry of information and
2000 Dec. communication) Re-designated as a Venture Company (New Technology
2000 Dec. Development Firm)

2001 May. P-CBO: 1.4 Million USD
2001 May. Patent for the technology and design
2001 May. (Title: Multimedia Device - No.98-42275, 98-16478)

Turnover
1999 : 14 Million (USD)
2000 : 34.4 Million (USD)
2001 : 46 Million (USD)

Vision of Digitalway

Development - Industry's best technology and human resources
With more than 50% of total employees are Research and Development staff. Digitalway is proud of Industry's best hardware and Software Technology and developing the best quality products only. IR52 2000 Chang Young Shil Invention Award, the first digital still camera integrating MP3 player, the first MP3P with 3D sound, World's longest battery running time (20 hours), multi language supporting LCD, and a lot more¡¦ Digitalway's developmental effort for the best will go on as it has been.

Design - Sweeps design awards of KIDP in yr 2000 and 2001-07-06
Digitalway has been released more than 10 different models including MPIO brand and other OEM products. Some of products were awarded such as 2000 KIDP's Best designed product (MPIO-SV), 2001 KIDP Good Design (MPIO-DMG), 2001 new Millennium Design Product (PIO-DMG). With customers and buyers' support, our in-house designers are trying their best to design products more convenient to use and more attractive. Digitalway is planning to release 4 different new models for the rest of this year.

Manufacturing Management - 30,000~50,000 volumes per month
Digitalway has experienced in manufacturing various products for various buyers and customers from all other countries. Different manuals in different languages, different color, box type, accessories in all different term and conditions, those are the things that Digitalway has been through to control and manage. As the largest manufacturer of digital audio player, Digitalway has outstanding know how to deal with mass production and its dedicated control.

Marketing
Not only its mass volumes but also its high quality, Digitalway is well known in the industry. With great support from OEM partners such as, REC and Samsung, Digitalway is now gearing up for own brand expansion, MPIO. As 2001MP3P market is estimated as 3 million, Digitalway is planning to enlarge productions through OEM and Co-Brand strategy as well as MPIO Brand exposure. Digitalway's turn over has grown as 12 Million USD in 1999, 34 Million USD in 2000 and 46 Million USD in 2001 expectedly.

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