Internet

Internet Internet

Internet 96 IT 7 84% Internet 32 16% Internet

Internet 96 IT

Internet 82% 16% 16% 2% 22% 60%

Internet INTERNET 12,000.0 10,000.0 8,000.0 6,000.0 4,000.0 2,000.0 0.0 USA Japan UK Canada Geman y Australi a Brazil China France Korea Taiwan Italy Sweden Netherla nds Spain users 11,082.0 1,815.6 1,397.5 1,327.7 1,228.5 683.7 679.0 630.8 569.6 568.8 479.0 479.0 395.0 293.3 290.5

Internet (CNNIC) 400% 1995 400 Internet 7000 1999 Internet

Internet 9000000 8000000 7000000 6000000 5000000 4000000 3000000 2000000 1000000 0 Feb. 95 July, 96 Dec. 96 Dec. 97 Dec. 98 Dec. 99 online Computer 400 6,000 24,000 213,000 747,000 3,500,000 users 7,000 40,000 100,000 425,000 2,100,000 8,900,000 CNNIC

Internet Internet (CNNIC) BDA

Internet 1999 CNNIC IDC BDA China 99 2001 2003 2002 2005 Internet

Internet 2005 Internet 6.58% 60 %

Internet Internet 1994 1997 3 1920 1985 60 1950 1985 35 1985 1995 10 Internet

WTO Internet Internet

ISP/ICP ISP/ ICP

NASDAQ Internet

NASDAQ NASDAQ NASDAQ NASDQ

NASDAQ OTCBB NASDAQ ISP/ICP

NASDAQ OTCBB Cathay Online (CAOL) Intermost. (IMOT) Forlink Corp (FRLK) Xin Net Corp (XNET) ISP ICP ICP ISP

Internet BBS

ISP BBS

Situation 99 11 ISP/ICP 2000 3 NASDAQ IPO

ISP/ICP ISP/ICP 163 Internet 50% ISP/ICP

5 540 ( 67 ) 30

1996 1999 Internet (20 RMB) 2.4 US per hour (3RMB) $0.36 US per hour Telephone (3.6 RMB) $0.4 US per hour same Special note - 85% -

ISP/ICP ISP/ICP Dissatisfied with prospects investors re-channeled funds to other areas ISP ISP/ICP

( ") ( ") ( ")

ISP/ICP 1996-1997 ISP AOL 1998 ICP 1999 2000 ICP NASDAQ IPO

NetEasy.com Sohoo.com SRSnet.com (sina.com) Hotmail Yahoo Sina.net

ICP

CNNIC Atweb ISP/ICP 1999 10 ISP/ICP

CNNIC report Atweb.com Test Evaluating sites using technology standards 6029 www.netease.com www.china.com 5289 www.sohoo.com.cn readchina.com (www.rol.cn.net) 5019 www.163.net www.ihw.com.cn 4883 www.263.net www.263.net 1469 www.sina.com.cn (www.srsnet.com) www.sohoo.com.cn (www.sohu.com) 1416 www.online.sh.cn www.netease.com 1287 www.yeah.net www.online.sh.cn 1075 www.cpcw.com ww.east.com.cn 1059 www.chiabyte.com www.chinabyte.com 1002 www.szonline.net www.sina.com.cn (www.srsnet.com)

1. 2.

IT Internet companies unable to match compensation package

Internet Internet ISP/ICP

ISP/ICP ISP/ICP Internet

Internet ECSP= PDF

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INTERNET Web

: / / /ISBN / / /... Tape

: : WEB Ethernet internet PC / PDA ebook

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DigiArk DIGIARK + / =

DIGIARK (internet) B2C B2B

DigiArk B2C C2B

: / /

8000 7000 6000 5000 4000 3000 2000 1000 0 2000 2001 2002 2003

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