China Voice Holding Corporation (CHVC)

FULLY LICENSED, CHARTERED TELCO IN CHINA

CHVC has the ability to do business as a fully licensed, chartered Telco in China with complete government sanctioning for advanced hosted voice and data services. This legal status allows full operation in an open and visible way. This aspect of CHVC's operations in China is very difficult to achieve but provides a distinct competitive advantage over gray market unlicensed service providers.

In addition, CHVC has operational licenses with most of the large state-owned Telcos that permit co-location, fully legal interconnections among the Company's technical systems and China's public telephone system. This allows CHVC to be a facility-based provider employing its own technical platform under its own control and management, permitting the Company to set and maintain very high service standards.

NEW SERVICE MODELS IN CHINA WITH LITTLE COMPETITION

The Company's advanced hosted application services provide service models that are new to China with little competition and are very attractive to both corporate and government prospects. CHVC's technology has the advantage within China as it was Made in China around the specific needs of the Chinese Government and large Enterprise companies. The fact that CHVC's software was written in Chinese by Chinese Nationals and is patented and licensed in China gives the Company's government customers extra comfort in very sensitive and secure environments.

No other technology compares to the Company's full suite of voice and data communications, document management and workflow and related services and solutions. In addition, VoIP or Internet Telephony sold by itself is not legal in China, however when integrated into the SKY O/A application, it is perfectly legal and licensed by the Government. When VoIP is integrated into the OA platform it enables each agency to manage and administer all telephony functions and features.

RELATIONSHIPS IN CHINA

Our growth strategy starts with our existing relationships with telecommunications companies and government entities. Our Chinese subsidiary, Candidsoft, has enjoyed many long-term relationships with numerous government and academic customers, such as China Foreign Trade Commission, China Telecommunication Administration Bureau, China Tourism Bureau, China National Anti-Poverty Organization (NAPO), Navigation Affair Administration Bureau of the GuangXi Autonomous Region, Guang Xi Land Transport Bureau, Beijing Normal University, and Zhong Shan University.

We have signed agreements with Chinese telecommunications carriers China Mobile and China Unicom, to provide us with preferential rates and cooperation. The agreements call for these carriers to provide connectivity, network expansion, installation, billing, collection and on-going support of our government contracts.

These relationships give us the opportunity to reach large numbers of customers quickly. In China, we will continue to expand and strengthen relationships with government entities and telecommunications companies to expand our market and customer reach.