China puts hopes in Loongson CPU

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| China, which has long wished to develop its own computer industry, has chosen
| to go with Linux on the software side. Loongson is its hope for the hardware
| side.

CCID Consulting: Industrial Convergence Accelerates Technological Innovation

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| As to the development of operating systems, China has done a lot of R&D work
| on Chinese Linux, supporting open source codes and its applications.
| Currently, many manufacturers have developed commercial Chinese Linux
| operating systems and have applied them to industrial and informatization
| projects. China has independently developed Red Flag Linux, CS&S Linux and
| Red Office based on Linux. As to the server operating system, the
| technological development of Kylin (internal test version) has been completed
| and provided with independent intellectual properties. Added to this, China
| has developed Chinese Linux for desktops, CS&S Linux4.0 and Red Flag
| Linux4.0. As for office software, the large-scale integrated office software
| Yongzhong Office2003 has been successfully developed with independent
| intellectual property. KingSoft developed the new cross-platform word
| composition engine, tabular computation engine and animation play engine for
| Chinese Linux and put forward KingSoft WPS running on Chinese Linux. China
| has make breakthrough progress on the application of Linux to servers,
| embedded systems, Internet and information security. Application software for
| intelligent mobile phones, STBs, commercial servers and medical appliances
| have been developed and they present satisfying commercial applications
| potential and high commercial value...


Linux gains ground in China

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| Linux has been riding on a wave in China, topping the growth of all operating
| systems in the first quarter of 2007, says an industry analyst.

Red Hat sees FY07 greater China sales up 100 pct

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| Red Hat Inc., a distributor of open-source Linux software, expects its
| sales in the greater China region to double in fiscal 2007 and grow by
| 85 percent in fiscal 2008, an executive said on Tuesday. "Our plan is to
| have 100 percent growth this year, and 85 percent growth next year,"
| Michael Chen, general manager of Red Hat China, told Reuters in an
| interview.

Linux becomes mature and achieves excellence

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| According to statistics from the China Open Source Software Promotion
| Union, Linux's sales in the Chinese market reached 218 million Yuan in
| 2006, up 41 percent, and higher than the international average. In 2006,
| in the domestic market, seven million computers in the domestic market
| were signed up for pre-installation of Linux, making up 35 percent of
| the computers in the Chinese market. This all demonstrates that Linux
| has great development potential. Some domestic Linux manufacturers are
| also collaborating with international IT companies to constantly improve
| their product lines. The domestic brand, Linux, has essentially matured.

CCID Consulting: China's Linux Market up by 30.9% in 2007Q1

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| As for industry segments, Linux market growth was mainly concentrated
| in the government, financial services and telecom sectors, which accounted
| for a market share of 34%, 22.5% and 21.2% respectively.