The commencement of the joint venture, Global Financial Systems Limited (“GFS”), and the strategic cooperation press conference between CVIC Software Engineering Co., Ltd. (“CVIC SE”) and Global Risk Systems Limited (“GRS”) was ceremoniously held in Shandong Hotel, Jinan, Shandong on June 16, 2006. Governors and officials from provincial and municipal governments at different levels attended the ceremony, along with other over 100 distinguished guests from mainland China, Hong Kong, Australia, and the United States. Governor Han Yuqun and Vice Governor Wang Renyuan of Shandong Province and Dr. Alan Thomas, ambassador of Australia to China presented and celebrated the establishment of the new joint venture.

GFS will become one of the leading providers of financial information systems in China, targeting the Asia Pacific Region. GFS’ business is to improve the core competencies of banks, adopts advanced international financial concept, takes into consideration China’s special attributes and puts forward complete solutions, products and services of the GFS Finsys products. IAG from Australia who is one of the world’s largest insurance companies has become a shareholder in GFS, in addition to their recently proposed acquisition of 24.9% of China Pacific Insurance Company. The parties will leverage their own unique advantages and provide strong local knowledge and superior financial services for the domestic finance industry to keep pace with the international level.

GRS is well known as a famous IT services company in Australia, and has very valuable customers including Australia and New Zealand Banking Group Limited (ANZ), National Australia Bank (NAB), Westpac Bank Corp. (WBC), Commonwealth Bank of Australia (CBA), Hongkong and Shanghai Banking Corporation (HSBC), AXA Insurance Group and AMP Limited. Mr. Geoffrey Ross, Executive Chairman of GRS, is a renowned entrepreneur in Australia, and all senior managers in GRS have more than 10 years experience in the financial sector, and a very deep understanding of the demands and trends of international financial informatization.

Mr. Ross said, “As China’s banking opens wider to the outside world, foreign capital banks will directly and indirectly enter China’s financial services market. Under such circumstances the domestic banks, especially regional smaller banks, will face increased pressure from the changes in the market, face increased pressure on margins and management of operational costs. GRS and CVIC SE have established GFS, which is committed to meeting the challenges faced by the domestic banks today and in the future by assisting them to implement international best practice and to assist in the development of the China’s banking industry.”

CVIC SE is one of the earliest software companies to supply systemic services to the banking industry. CVIC SE has been dedicating itself to serving the finance informatization for 15 years, and has provided a series of solutions covering the scope of Core Banking, Intermediary Businesses, Credit Management and Risk Rating. It possesses such VIP customers as the head offices of China Construction Bank, Bank of Communications, China Minsheng Banking Corp., Ltd. and Guangdong Development Bank, and has a network of commercial banks in many cities as well.

Mr. Jing Xinhai, Chairman and CEO of CVIC SE, said: “The cooperation with GRS is one of the most important steps in CVIC SE’s internationalization. Combining CVIC SE’s best practices and GRS’ international expertise in the financial services technology, we are sure that GFS is capable of delivering the best financial product services and becoming a leading brand in the financial IT sector in both China and Asia and Pacific regions.”