TOM Online Inc. ("TOM Online") is the largest wireless Internet value-added services provider in China, targeting the young, trendy and technology-savvy demographic. Building on the core strengths of wireless Internet business and by integrating its products and services, TOM Online is working towards a differentiated platform to introduce seamless online-to-mobile user experience.

To capitalise on the increasing trend towards social networking websites, TOM Online's Internet portal unveiled a new user interface in early 2008.  With the widgetisation and modulation of the portal, it is well positioned to become a more application and tool centric integrative and interactive platform to meet the needs of various consumer segments.  Together with its local and multinational partners, TOM Online will continue to bring in and develop innovative products and services through the open platform.

TOM Eachnet, a new e-commerce platform in China launched during the year, has a simpler and more user-friendly interface.  New functions and services including search engine and virtual goods like pre-paid mobile cards were well received. The standalone platform provides a substantial and sustainable online marketplace for buyers and sellers in Mainland China with online commerce services tailored for the domestic market.

TOM-Skype, a leading online communications service developed for the Chinese market, owns the world largest user base among Skype communities. More localised services will be launched leveraging these resources.

Following its successful privatisation, TOM Online will explore further digital opportunities with traditional media with a view to strengthening the Group's media platform.